• Mon. Apr 29th, 2024

3 Reasons Traders Are Excited for Nano Bitcoin Futures

ByNinjaTrader

Jul 26, 2022
3 Reasons Traders Are Excited for Nano Bitcoin Futures

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Bitcoin is the first, most popular, and most highly valued cryptocurrency. However, traders know there are limitations trading the actual currency such as the lack of a regulated trading exchange, difficulties in shorting, and more.

Now available from NinjaTrader, Nano Bitcoin futures from Coinbase Derivatives will deliver all the excitement of participating in the Bitcoin marketplace packaged with the numerous benefits of futures trading. At 1/100th the size of one Bitcoin, traders gain cost-efficient access to the Bitcoin marketplace including day trading margins of only $25 per contract, commission-free trading & no market data fees.

Nano Sized Bitcoin Futures Are Making a Ton of Sense to Traders

Over the past several years, the volatility in Bitcoin has vastly exceeded many other industry benchmarks; including U.S. stocks and real estate, Gold, the Eurodollar, and even oil. (While volatility means opportunity, it is also a measure of risk. Nano Bitcoin futures allow retail traders to participate in the excitement of Bitcoin marketplace but with their assets protected in a regulated environment.

Traders need to be able to capitalize on the opportunities that volatility provide, but at the same time quickly and efficiently manage risk. Where the actual coin falls short in these areas, futures succeed. But how?

  1. Bitcoin going up or down? Trade opportunities in both directions.
    As a futures product, Nano Bitcoin Futures easily allows for both long and short trading by simply buying or selling contracts. That’s the benefit of futures. Oh, and no pattern day trading balance requirements, no uptick rule, and no short-selling restrictions.
  2. Peace of mind.
    Nano Bitcoin Futures are a regulated product trading on a regulated exchange with the Commodity Futures Trading Commission maintaining a watchful eye. While you may not know this, you certainly should… Bitcoin, as with all cryptocurrencies, is not a regulated asset, nor does it trade on a regulated exchange.
  3. Price discovery and transparency – Go ahead and choose which option you would prefer:
    Option 1 – Trade a product where all market participants see the same price and quotes.
    Option 2 – Trade a product where prices and quotes could vary.

For most traders, this is a pretty easy choice. Trading Bitcoin on unregulated crypto exchanges fails to provide what is a central function to a fair marketplace… Price Discovery. Centralized and regulated markets offer transparency, the instant dissemination of information, and bid and ask prices simultaneously available to all market participants across the globe. As a result, efficient and fair price discovery is achieved when trading Nano Bitcoin, and sadly, not so much when trading in the actual coin.

Trade Nano Bitcoin with NinjaTrader

Open you futures trading account and get started with unlimited simulated trading to practice in a risk-free environment.

NinjaTrader supports more than 500,000 traders worldwide with a powerful and user-friendly trading platform, deep discount commissions and world-class support. NinjaTrader is always free to use for advanced charting, strategy backtesting and risk-free trade simulation.

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Image and article originally from ninjatrader.com. Read the original article here.