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October 31, 2023

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

Ethan Lim
Written byEthan LimWriter
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
Ethan Lim
Ethan Lim
About

Ethan Lim, a native of the Lion City, is Singapore’s rising star in the domain of online casino guide localization. He masterfully blends his intimate knowledge of local culture with international gaming standards to produce content that resonates deeply with Singaporeans.

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