CME Group opens trading for event contracts on bitcoin futures
Derivatives trading giant CME Group opened trading of event contracts on Bitcoin futures on Monday.
What are event contracts? Innovation in Future Markests: Event Contracts, Speculation and Hedging
These contracts are called event contracts but are also known as prediction contracts or information contracts. They are short-term contracts that expire at the end of each trading day. Traders can take positions in these contracts as they predict whether the price of a given asset will finish the trading day above or below a set value.
They sound the same as binary bets. The only difference is that bets are gambling while the CME is not known as a casino - not officially.
But a contract that expires daily is not investing - it's gambling.
So, have fun... and remember how well protected you are within traditional finances.
gambling, but with a contract that makes it speculation - not gambling.