Bitcoin Futures

Bitcoin is a digital currency, also known as a cryptocurrency, and is created or mined when people solve complex math puzzles online. These bitcoins are then stored in a digital wallet that exists on the cloud or the user’s computer. Because bitcoins are not housed in bank accounts, brokerage, or futures accounts, they are not insured by the FDIC or SIPC.

Virtual currencies, including bitcoin, experience significant price volatility. Fluctuations in the underlying virtual currency's value between the time you place a trade for a virtual currency futures contract and the time you attempt to liquidate it will affect the value of your futures contract and the potential profit and losses related to it. Investors must be very cautious and monitor any investment that they make.

To get started, you first need to open a TD Ameritrade account and indicate that you plan to actively trade. There are certain qualifications and permissions required on your account for CME Group (CME) bitcoin futures trading (/BTC)^SM and CME Group (CME) micro bitcoin futures trading (/MBT)^SM, including:

• Non-Retirement Account
• Futures trading approval

Please note that the Charles Schwab Futures and Forex LLC margin requirement for bitcoin futures products is 1.5 times higher than the exchange margin requirements, and is subject to change without notice.

Funds must be fully cleared in your account before they can be used to trade any futures contracts, including bitcoin futures. ACH and Express Funding methods require up to four business days for deposits to clear. Wire transfers are cleared the same business day.

While futures products still carry unique and often significant risks, they can potentially provide a more regulated and stable environment to provide some exposure to bitcoin as a commodity as well. You should carefully consider whether trading in bitcoin futures is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Please note that virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Virtual currencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional fiat currencies. Profits and losses related to this volatility are amplified in margined futures contracts.