Crypto Facilities, a trading platform regulated by the Financial Conduct Authority, recently announced that they would launch new futures contracts for Bitcoin [BTC] Ethereum [ETH] Litecoin [LTC] Bitcoin Cash [BCH] and XRP. These contracts will also be perpetual, they said.
Their announcement on Twitter said:
"We have just launched Perpetual Futures on XBT / USD and the first Perpetual BCH / USD, ETH / USD, XRP / USD, LTC / USD and XRP / XBT contracts at the world Bitcoin, Ether, Litecoin, XRP and BitcoinCash as a guarantee for trade 24/7! "
Couples for contracts are BTC / USD, ETH / USD, LTC / USD, BCH / USD, XRP / USD and XRP / BTC. All contracts except XRP / BTC are reverse perpetual futures, with the remaining contract as futures futures for vanilla.
To understand what is a perpetual fixed-term contract, it is necessary to understand what a futures contract is. It is a kind of derivative product represented by a contract to exchange a commodity or an asset at a specific time in the future.
However, with perpetual contracts, there is no deadline or regulation. Instead, there is a settlement process that occurs every 4 hours on the Crypto Facilities platform. This applies to financing to anchor the spot value, ie the price of the assets guaranteed on the basis of the underlying spot markets, to the index used to settle the contract.
The rate for the next period of the settlement process is calculated over the current period. The trader must end his / her position in order not to receive more income from the future contract. Payments are ongoing, based on the funding rate established at the end of the previous financing interval.
Positions will send and receive open funding in contracts. All contracts are settled in cash and do not imply the deposit of the underlying assets. All funds are denominated in USD 1 as a contract size, with the exception of XRP contracts, which are denominated in XRP.
Because futures contracts do not require traders to register 100% of the assets guaranteed as a margin, they can trade with a leverage. Leveraged allows traders to set only a percentage of the resource as a margin and then exchange the leveraged amount for 10x or 100x.
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