Bitcoin futures are coming this weekend — here's what to expect

On Sunday, the Cboe will finally launch its long-awaited bitcoin futures contract; the CME Group will launch its futures contract later this month.

This will surely add a new element to bitcoin, shifting it from a buy-side-only trade to introducing the ability to go long — or short. This should bring new, larger and institutional participants into the market.

To be sure, any time a new contract launches, you want to get a good gauge of expected movement. Take a look at the average true range of the last 30 days, the last week and day by one exchange's measure.

Last 30 days – High of $18,464, low of $5,868
The last week – High of $18,464, low of $10,797
The last day – High of $18,464, low of $14,610

As one can see based on the wide ranges, this is a volatile contract. Using a stop-loss order is going to prove paramount.

The question remains: Will this just be a short-lived contract, like single stock futures, real estate futures or binary futures?

No one knows.

Two pieces of advice I can offer when diving into trading this product: Markets tend to fall twice as fast as they rise. This occurs when investors catch a long-trending bull move, and then when they see their profits start to slip a "panic" occurs and everyone runs for the exit.

The second one to remember: Plan your trades and trade your plan.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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