The second major financial instrument based on bitcoin is starting out to trade on the CME.

The CME Group, one of  the nation's premier exchanges of options and options contracts ,made available bitcoin futures and options for trading at 6 p.m. EST Sunday. The initial price for bitcoin futures was $20,650, and the digital currency was trading at $20,135 at 6:08 p.m. EST.

The digital currency has increased in popularity and price tag this year though drawing concerns regarding its volatility.

The CME bitcoin futures contracts, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not need real bitcoin. They will monitor an index of bitcoin price. Each contract will be for 5 bitcoin.  

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Rival Cboe Global Markets had hosted $30m in bitcoin futures trading over the same time.

Futures markets have been in existence for the more mature asset classes, including commodities and equities for quite some time, however, Bitcoin futures launch is a major step towards the legitimisation of the most popular cryptocurrency. ASR's Chanel said that the launch of futures on CME should eventually help iron out some of the wild gyrations in the price of bitcoin. Note: Each CBOE bitcoin futures contract relates to the underlying price of one bitcoin. 

A CFD is a contract for difference where you agree to exchange the difference in price of XRP from when you opened your position to when you close it.

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