Interactive Brokers has introduced small-sized “nano”
contracts and perpetual-style futures, aiming to give eligible clients a more
flexible access to crypto in a regulated setting.
Interactive Brokers Launches Nano Bitcoin and Ether
IB added nano Bitcoin and nano Ether futures from
Coinbase Derivatives to its trading platform. The contracts come in two types:
ones with monthly expirations and perpetual-style contracts that behave like
long-running futures tied closely to spot prices.
Besides that, trading runs 24/7, so clients can
respond to crypto price moves at any time, not just during traditional market
hours.
The broker already connects clients to more than 170
markets worldwide from a single platform. Now, users can trade these new crypto
futures alongside stocks, options, bonds, and other products in one place.
Smaller Contracts Lower the Barrier to Entry
The new offering uses nano contracts, which are much
smaller than standard futures. Each nano Bitcoin contract represents 0.01 BTC,
while each nano Ether contract represents 0.10 ETH. This smaller size aims to reduce the cash needed to
open and manage positions and helps traders fine-tune their exposure.
“Perpetual-style crypto futures have become popular
with traders because they provide long-dated exposure and greater flexibility,”
commented Milan Galik, the CEO of Interactive Brokers.
Interactive Brokers is also offering perpetual-style
crypto futures as part of the launch. These contracts are designed to track the
spot prices of Bitcoin and Ether more closely over time. They run as long-dated
futures, which means traders do not need to roll into a new contract every
month as often happens with traditional futures.
This article was written by Jared Kirui at www.financemagnates.com.
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