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.
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Complete details of the futures and perpetual contracts on BTC that are listed on Delta Exchange are available below.
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.
BTC Perpetual contracts are quoted in USD. All margin, Profit/ loss and settlement calculations are denominated in BTC.
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.
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 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.
This contract is perpetual and does not settle.
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.
BTC Futures contracts are quoted in USD. All margin, Profit/ loss and settlement calculations are denominated in BTC.
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.
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.
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.
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.
Starting trading on Delta Exchange is a breeze. Here’s how you can make your first BTC trade on Delta Exchange:
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.
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.
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