What factors determine the tick value of bitcoin futures?

3 answers

• Nov 23, 2021 · 3 years ago
  The tick value of bitcoin futures is determined by several factors. Firstly, the current price of bitcoin plays a significant role. As the price of bitcoin fluctuates, the tick value adjusts accordingly. Secondly, the contract size or the number of bitcoins per contract also affects the tick value. A larger contract size will result in a higher tick value. Additionally, the volatility of bitcoin and the market conditions can impact the tick value. Higher volatility and uncertain market conditions may lead to a higher tick value. Lastly, the exchange where the futures contracts are traded can have its own rules and specifications for determining the tick value. It's important to consider these factors when trading bitcoin futures to understand the potential risks and rewards involved. 🙂
  798399
• Nov 23, 2021 · 3 years ago
  Determining the tick value of bitcoin futures involves a combination of mathematical calculations and market factors. The tick value represents the minimum price movement of a futures contract. For bitcoin futures, the tick value is typically determined by the exchange where the contracts are traded. The exchange sets the tick size, which is the minimum price increment, and the contract size, which is the number of bitcoins per contract. By multiplying the tick size by the contract size, you can calculate the tick value. It's important to note that the tick value can vary between different exchanges and may change over time based on market conditions and regulatory requirements. Understanding the tick value is crucial for managing risk and making informed trading decisions. 😊
  788263
• Nov 23, 2021 · 3 years ago
  The tick value of bitcoin futures is primarily determined by the exchange where the contracts are traded. Different exchanges may have different tick sizes and contract specifications, which can influence the tick value. For example, on the BYDFi exchange, the tick size for bitcoin futures is set at $10, meaning that each tick represents a $10 price movement. The contract size is set at 1 bitcoin, so the tick value is equal to $10. However, it's important to note that the tick value can change based on market conditions and the exchange's rules. Traders should always check the exchange's specifications and monitor the market to stay updated on the tick value of bitcoin futures. 🙂
  690173