BTC Perpetual Contract Guide
You can trade Bitcoin (BTC) on BTEX through a new, innovative type of contract called a Perpetual Contract which is aimed at replicating the underlying spot market but with enhanced leverage. This product does not have an expiry date and is able to closely track the underlying reference Price Index through various mechanisms, the main of which is known as the Funding Rate.
How is the BTCUSD Perpetual Contract Quoted?
The BTCUSD contract’s underlying price is the BTEXBTC Index. It is an equally weighted index using the Bitstamp, Kraken, and GDAX USD BTC/USD prices. Both the underlying and the swap contract are quoted in USD. Margin and PNL are denominated in Bitcoin.
|BTC Contract Value||Multiplier / BTCUSD Price|
|USD Contract Value||1 USD|
|PnL Calculation||Contracts * Multiplier * (1/Entry Price - 1/Exit Price)|
Traders who want to profit from an increase in the Bitcoin / USD price, will buy the BTCUSD contract. Conversely, if they believe the price will go down they will sell the contract.
Margin and Leverage
All margin is posted in Bitcoin, which means traders can go long or short this contract using only Bitcoin. The BTCUSD contract features a high leverage of up to 100x.
The .BTEXBTC Index is currently being used for the BTCUSD Perpetual Contract and BTC Futures Contracts. The constituents are as below:
At this time, weightings are equal weighted. In the future, we may adjust this index. Any adjustments will be made with ample notification.
Marking and Settlement
As the BTCUSD contract is perpetual, there is no settlement. Marking for Unrealised PNL and Liquidation purposes are done according to the Fair Price Marking system.
Note also: since this product is a perpetual contract, funding occurs every 8 hours. Please see the Funding Section in the Perpetual Contracts Guide for information, and for the current rates please see Funding Calculation in the BTCUSD Contract Specifications.
BTCUSD: Contract Specification
The base currency is BTC.
The quote currency is USD.
BTCUSD is a BTC/USD perpetual contract priced on the .BTEXBTC Index. Each contract is worth 1 USD of Bitcoin.
Funding is paid and received every 8 hours.
|Interest Base Rate||0.03%|
|Interest Quote Rate||0.06%|
|Funding Interval||every 8 hours|
|Next Funding||2019-04-22 12:00:00 (UTC0)|
|Auto-Deleveraging Enabled||Yes: This contract is highly speculative and manages loss through auto-deleveraging.|
|24H Turnover||14,997 BTC|
|Type||Settled in BTC，quoted in USD|
|Contract Size||1 USD|
|Settlement||This contract is perpetual and does not settle.|
|Commission||See the Fees Reference for more details.|
|Minimum Price Increment||0.01|
|Max Order Quantity||50000|