min to read

2019-09-11 13:26:19




News

Bakkt platform announced the minimum deposit size for bitcoin futures trading

September 23

min to read

2019-09-11 13:26:19

Intercontinental Exchange (ICE), the operator of the Bakkt cryptocurrency platform, has announced the official requirements for the minimum deposit size for participating in bitcoin futures trading, the launch of which should take place before the end of September.

Intercontinental Exchange (ICE), the operator of the Bakkt cryptocurrency platform, has announced the official requirements for the minimum deposit size for participating in bitcoin futures trading, the launch of which should take place before the end of September.

 

According to a publication on ICE Futures U.S., to participate in Bakkt futures trading with daily and monthly settlements, the customers will need to make a minimum deposit of $ 3,900. The “speculative initial requirements” will be somewhat higher, at $4,290 each.

 

In a comment to CoinDesk, TradeBlock Research Director John Todaro explained that the “initial hedge” corresponds to “the amount of assets that must be provided in order to open a position.”

 

“Speculative requirements are for those accounts that are speculating on the price move on bitcoin through futures contracts. The Commodity Futures Trading Commission (CFTC) and other regulating agencies have rules in place to protect futures markets from excessive speculation, which can lead to deviant price fluctuations and volatility” – added John Todaro.

 

Also, ICE Futures US reported requirements for intra-month additional reserves for exchange rate volatility. They are $ 400 - 1,000 for the initial hedge rate and $ 440 - 1,000 for the speculative rate. The size of the reserves will depend on “expiration dates and the differences in contract expiration dates”.

 

“As contracts trade over time, there then becomes a maintenance requirement in order to keep your position open,” Todaro said. “Depending on market movements, this position may require you to allocate more funds to return the initial margin required.” — explained Todaro.

 

Taking into account the current rate of bitcoin (around $10,000), presented by ICE Futures U.S. the requirements are consistent with Bakkt's previous statement that the initial margin will be approximately  37% for outright contracts.

 

It should be mentioned that the acceptance of deposits on the Bakkt platform began last week, and the start of trading the first in the industry regulated delivery futures is scheduled for September 23.

All rights reserved © CryptoRivista