Interactive Brokers Allows Long-Only Bitcoin Futures Trading (At 50% Margin)

Following the 'successful' launch of Bitcoin futures overnight, Interactive Brokers - whose founder had been adamantly against the CME/CBOE product over risk concerns - has enabled clients to trade the crypto-craziness on its platform... but with some notable constraints.

Interactive Brokers began offering clients the ability to trade bitcoin futures at the start of trading on the Cboe Futures Exchange (CFE) on Sunday night, December 10th, 2017.

“Interactive Brokers was on the buy side of the low print of 14,710,” said Thomas Peterffy, founder, Chairman and CEO of Interactive Brokers.

 

“A Registered Investment Advisor on the Interactive Brokers platform purchased two March contracts in the first minute of trading.”

However, as Interactive Brokers explains, there are some notable constraints...

Due to the extreme volatility of cryptocurrencies, clients will be unable to assume a short position.

 

In addition, only limit orders will be accepted.

 

IBKR’s margin requirement on long positions will be at least 50%.

 

The company will continue to monitor concerns surrounding the market's ability to process bitcoin futures risk.

Billionaire crypto fund manager Mike Novogratz was on tape this morning, speaking positively about the launch of Bitcoin futures,

“The market trades like it wants to go up, not down...We are in a speculative mania and my sense is we are still fairly early.”

For now, Bitcoin futures prices are holding their gains, outperforming spot Bitcoin and spot Gold...