Bitcoin Gets Launched

December 8, 2017 8:45AM CST

On December 10 and December 17 the CBOE and CME will finally launch the long awaited Bitcoin Futures contract. This will add a new element to bitcoin changing it from a buy side only trade to having the ability to go long or short. This should bring new larger and institutional participants to the market.

Anytime a new contract gets launched you want to get a gauge of the type of movement to expect, so take a look at the average true range of the last 30 days, week, day and hour.

Last 30 days – High $18,464 – low $5,868

Week- High $18,464 – Low $10,797

Day- High $18464 – Low $14,610

And the last hour as of this writing - High $15,564 – Low $14,796

As one can see based on the wide ranges this is a volatile contract so using a stop loss order is going to paramount.

The question is, will this just be a short lived contract like single stock futures, real estate futures or binary futures, no one knows. Two pieces of advice I can offer when diving into trading this product. Remember, markets tend to fall twice as fast as they rise. This occurs when investors catch a long trending bull move and then when they see their profits start to slip a “panic” occurs and everyone runs for the exit. The second is to remember to plan your trades and trade your plan.

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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.