How to Trade Bitcoin Futures: A Step-By-Step Guide

This means you would be aiming to be able to sell the currency at today’s price, even if the price drops later on. When you create a rule, you can choose the option “Demo Exchange” in the first dropdown. That means that all the coins available on Binance can be traded in a safe environment with no risk involved. This is the best tool to test trading strategies in paper trading on Binance.
But backtesting is not just a gatekeeper to prevent us from deploying flawed strategies and losing trading capital, it also provides a number of diagnostics that can inform the STS development process. is a multi-asset broker with over 2.5 million global clients. The firm offers CFDs and multipliers, alongside proprietary synthetic products which can’t be found elsewhere. Deriv provides both its own in-house trading software and the hugely popular MetaTrader 5. Skilling is a multi-asset broker founded in 2016 and based in Cyprus. The brand offers 900+ instruments with competitive spreads from 0.1 pips and beginner-friendly platforms.
CME started offering Bitcoin futures from December 18, 2017 onwards, a week after CBOE listed Bitcoin futures for trading. Bitcoin Trading Bot of the virtual trading facility is also seen as an attempt to increase the volume in the futures market. Leading market makers such as DRW, DV Trading, and Akuna Capital have expressed their interest to provide liquidity in the Bitcoin futures markets. There are also two different ways futures contracts can be settled. If the trader closes the futures position for a loss the funds are withdrawn from the traders account and their account balance will go down.
Interactive Brokers’ Trader Workstation (TWS) is one of the most advanced trading platforms you can find online. The platform offers hundreds of tools for technical analysis capable of analyzing a wide range of markets and tradeable assets. Interactive’s TWS Paper Trader virtual trading platform offers almost all of the features of the TWS platform and lets you begin paper trading with $1,000,000 in virtual money. Kraken is a cryptocurrency exchange where you can buy and sell assets such as Bitcoin and Ethereum. Kraken is one of the oldest Bitcoin exchanges and supports 220+ different coins to buy, sell, and trade with competitive exchange fees.
CME uses the Bitcoin Reference Rate, which is the volume-weighted average price for Bitcoin sourced from multiple exchanges and is calculated daily between 3 p.m. Futures contracts of any underlying asset are derivatives of that asset. These contracts are bought and sold between two commodities investors, and they speculate about that asset’s price at a specific date in the future. We’ve discussed three ways a trader can manage their Micro Bitcoin futures position and exposure heading into futures expiration.
This is why finding the best crypto simulator is a crucial decision. However, there is no “best” simulator all around, as all traders are different and thus have different needs, goals and requirements. In short, the best crypto simulator for each trader is the one that best serves and matches those specific needs. To help you with your quest, we highlight below a handful of simulators which we consider among the best and most trusted, having received high credentials by independent reviewers and actual users alike. We invite you to give them a closer look and make your final pick according to which best serves your own specific needs, expectations and aims.