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October 31, 2023

Optimizing Bitcoin and Ether Futures Trading: CME Contract Sizes and Offshore Perpetual Futures

Leticia "Letty" Santos
Written byLeticia "Letty" SantosWriter
Researched byNikos PapadopoulosResearcher

Bitcoin Futures Contracts

CME offers two types of bitcoin futures contracts: standard and micro. The standard contract is equivalent to 5 BTC, while the micro contract is one-tenth the size of 1 BTC.

Optimizing Bitcoin and Ether Futures Trading: CME Contract Sizes and Offshore Perpetual Futures

Ether Futures Contracts

CME also provides ether futures contracts in two sizes: standard and micro. The standard contract has a size of 50 ETH, while the micro contract is one-tenth the size of 1 ETH.

Offshore Exchanges and Perpetual Futures

Most open interest in offshore exchanges is focused on perpetual futures rather than traditional futures contracts. Perpetual futures are unique because they have no expiry date and use the funding rate mechanism to stay in sync with the spot price.

Key Takeaway

When trading bitcoin and ether futures, it's important to understand the contract sizes offered by CME. Additionally, offshore exchanges primarily trade perpetual futures, which have no expiry and use the funding rate mechanism to maintain alignment with the spot price.

About the author
Leticia "Letty" Santos
Leticia "Letty" Santos
About

Letty Santos, a vibrant spirit from the heart of Manila, seamlessly merges her passion for Filipino culture with the exhilarating world of online casinos. Bringing a unique Filipino touch to every project, she's a gem in the casino localization realm.

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