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Bitcoin [BTC], XRP, Ethereum [ETH], Litecoin [LTC], and Bitcoin Cash [BCH] perpetual futures contracts launched by Crypto Facilities

Anirudh VK

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Bitcoin [BTC], XRP, Ethereum [ETH], Litecoin [LTC], and Bitcoin Cash [BCH] perpetual futures contracts launched by Crypto Facilities
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Crypto Facilities, a Financial Conduct Authority-regulated trading platform, recently announced that they would be launching new futures contracts for Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], Bitcoin Cash [BCH] and XRP. These contracts will also be perpetual, they stated.

Their announcement on Twitter said:

“We have just launched Perpetual Futures on XBT/USD. And world’s first Perpetual BCH/USD, ETH/USD, XRP/USD, LTC/USD, and XRP/XBT contracts Use Bitcoin, Ether, Litecoin, XRP & BitcoinCash as collateral to trade 24/7!”

The pairs for the contracts are BTC/USD, ETH/USD, LTC/USD, BCH/USD, XRP/USD and XRP/BTC. All contracts except the XRP/BTC are inverse perpetual futures, with the remaining contract being a vanilla perpetual futures one.

To understand what a perpetual futures contract is, one must understand what a futures contract is. They are a kind of derivative product that are represented by a contract to trade a commodity or asset at a specified time in the future.

However, with perpetual futures contracts, there is no expiry or settlement. Instead, there is a settlement process that occurs every 4 hours on the Crypto Facilities platform. This applies funding to anchor the spot value, that is the price of the collateralized asset according to underlying spot markets, to the Index used to pay out the contract itself.

The rate for the next period of the settlement process is calculated over the current period. The trader needs to terminate his/her position in order to stop receiving revenue from the futures contract. The payouts are continuous, based on the funding rate that was set at the end of the funding interval prior to that.



The positions will send and receive funding while open in the contracts. All the contracts are cash-settled and will not involve the warehousing of the underlying assets. All of the funds are denominated in 1 USD as the contract size, except the XRP contracts, which are denominated in XRP.

As the futures contracts do not require the traders to post 100% of the collateralized assets as a margin, they can trade with a leverage. Leveraged allows traders to only set a percentage of the asset as a margin, and thus trade for 10x or 100x the leveraged amount.





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Bitcoin

Craig Wright withdraws evidence, US Presidential Candidate emphasizes on crypto-regulation and more

Priya

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Craig Wright withdraws evidence, US Presidential Candidate emphasizes on crypto-regulation and more
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Daily Crypto News – April 18

Craig Wright withdraws email evidence: The self-proclaimed Satoshi Nakamoto withdrew the email evidence submitted to the court with regard to Kleiman case. This news comes days after some members in the community suggested that the email evidence was “fake”. Notably, the evidence was withdrawn as Wright could not verify the timeframe of when the emails were exchanged.

To know more, click here!

US 2020 Presidential Candidate urges the need for cryptocurrency regulation: Andrew Yang, the United States 2020 Democratic Presidential candidate, released a new policy, which emphasized on the need for regulating the digital asset place, and also listed the actions he would do for the cryptocurrency market as the President. On his official Twitter handle, Yang stated that, “Investment in cryptocurrencies and digital assets has far outpaced our regulatory frameworks”.

To read more, click here!

Bitcoin SV network witnesses yet another blockchain reorganization: It was reported that Bitcoin SV’s network witnessed another blockchain reorganization on a 128 MB block, with over six blocks orphaned [#578640–578645]. Moreover, Bitcoin SV’s network was unresponsive for over an hour.

To read more, click here!



Craig Wright takes on evidence and law: In a recent blog post, Wright speaks about proving to be the creator of Bitcoin, Satoshi Nakamoto. He stated that, “the important thing to understand is: law is law. Code (programs and algorithms) in any form is merely evidence… You see, ownership of the key is not proof of anything other than the possession of a key”

To read more, click here!





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