Here are three things that are critical to understand before you trade bitcoin:
Are bitcoin futures available on your trading platform? It currently is not available across all of the various trading platforms. But if it's on yours, understand the margin associated with the futures contract. It is a high margin product (nearly 40 percent), as trading platforms as well as clearing firms are very cautious on the product.
Tremendous volatility will be associated with bitcoin futures. Think of trading crude oil on a busy inventory data day; now, multiply that by about 20 or maybe 30.
Bitcoin futures contracts can't be hacked or stolen like coins have and can. They are exchange traded as well as regulated. This is compelling for those looking for long-only exposure to bitcoin versus those simply trading the contract. We are planning on working with clients in 2018 who desire this exposure in their portfolios.