Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange

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Bitcoin Futures & Perpetual Contracts Guide

About Bitcoin
Bitcoin (BTC) is the most prominent cryptocurrency in the world. It is a decentralized digital currency that functions without a central bank or single administrator. Peer-to-peer exchange of bitcoin can happen without the need for intermediaries.

Bitcoin is also the largest cryptocurrency by market capitalisation as well as trading volumes. You can margin trade Bitcoin on Delta Exchange using our derivative (i.e. futures and perpetual) contracts. This means that you can go long or short BTC with leverage.

Bitcoin Contracts Listed on Delta Exchange

Contract
Type
Max Leverage
Price Currency
Margin Currency
Action

Contract Type Max Leverage Price Currency Margin Currency Action
BTCUSD Perpetual 100x USD BTC See Market
BTCUSD_28Jun Futures 100x USD BTC See Market

Complete details of the futures and perpetual contracts on BTC that are listed on Delta Exchange are available below.

Bitcoin Perpetual

Perpetual contracts on BTC are intended to provide returns of the underlying spot market in Bitcoin with the added advantage of leverage. Perpetual contracts do not have an expiry date. You can learn more about perpetual contracts here.

Quotation Details

BTC Perpetual contracts are quoted in USD.  All margin, Profit/ loss and settlement calculations are denominated in BTC.

Margin and Leverage

BTC Perpetual contracts are margined in BTC. This means you need to have BTC to trade these contracts. The maximum allowed leverage for BTC Perpetual contracts is 100x.

Underlying Index

The underlying index for BTC Perpetual contracts is .DEXBTUSD. It is comprised of equal weighted average of BTC/USD price from bitstamp, coinbase and kraken.

Funding

Funding is a series of continuous payments that are exchanged between longs and shorts in a perpetual contract to keep the price of the contract tethered to the underlying index.

At any given time, funding rate is equal to the difference of the mark price and the underlying index price. Funding is considered to be an 8-hourly interest rate and is computed and exchange every minute. When funding rate is positive, longs pay shorts. When funding rate is negative, shorts pay longs.

Settlement

This contract is perpetual and does not settle.

Fees

  • Taker fees = 0.075%
  • Maker fees = -0.025%

Bitcoin Futures

Bitcoin futures are derivative contracts defined on BTC spot markets and have a have a fixed maturity date. The price of futures contract converges to the underlying spot market at the time of expiry. You can learn more about futures here.

Quotation Details

BTC Futures contracts are quoted in USD. All margin, Profit/ loss and settlement calculations are denominated in BTC.

Margin and Leverage

BTC Futures are margined in BTC. This means traders need to have BTC to trade these contracts. The maximum allowed leverage for BTC Futures contracts is 100x.

Underlying Index

The underlying index for BTC Futures contracts is .DEXBTUSD. It is comprised of equal weighted average of BTC/USD price from bitstamp, coinbase and kraken.

Settlement

The BTC Futures contracts are settled on the 30-minute-TWAP of the underlying index. To ensure that at the time of settlement there are no under-margined positions, the transition from using underlying index to 30-min-TWAP of underlying index is done gradually.

When the settlement time of a contract is one hour away, we switch to a weighted average of underlying index and the 30-min-TWAP of the underlying index in mark price computation. Over the next 30 minutes, the weights of underlying index and its TWAP go from 100%/ 0% to 0%/ 100%. This means the mark price is computed using the 30-minute-TWAP of the underlying index in the last half hour leading into contract settlement.

Fees

  • Taker fees = 0.075%
  • Maker fees = -0.025%

Trading Bitcoin

Why Should You Trade Bitcoin Futures & Perpetual

You can directly buy or sell Bitcoin. This is called spot trading of Bitcoin. If you buy low and sell high, you will make profit. However, this trade only works when Bitcoin price goes up. Further, leverage trading is not possible in spot trading.

Bitcoin margin trading through derivatives addresses these shortcomings. The BTC futures and perpetual contracts enable you to go benefit from both up and down move in Bitcoin. Further, these derivative contracts have built-in leverage, enabling you to trade big with small capital.

How to Start Trading on Delta Exchange

Starting trading on Delta Exchange is a breeze. Here’s how you can make your first BTC trade on Delta Exchange:

  • Register: This takes < 1min and requires on a verified email address. No other KYC is needed.
  • Fund your Delta Exchange Wallet: Only bitcoins are accepted in the Delta Exchange Wallet. A unique BTC deposit address will be generated for you when you register.
  • Convert BTC to USDC: All futures and perpetual contracts on Delta Exchange are margined and settled either in BTC or USDC. For USDC settled contracts, use the currency convertor to change BTC to USDC.
  • Make your first trade: Now you are all set to trade on Delta Exchange!

FAQs

  • Does Delta Exchange support margin trading?

    Delta exchanges offers trading in cryptocurrency futures. These futures offer: (a) up to 100x leverage and (b) ability to go both long or short. Crypto futures not only have the same features as margin trading, but also higher liquidity and lower trading fees.

  • Which cryptocurrencies can I trade on Delta Exchange?

    Delta Exchange is a derivatives exchange. You can trade futures on cryptocurrencies, but not cryptocurrencies directly. The complete list of futures listed on delta is available here.

  • How can I contact Delta Exchange?

    For any query, feedback, suggestion or business proposals, please write to us at: [email protected]