Understand what BLUR futures are and how to use the leverage in futures to amplify your trading gains
Blur futures enable you to take long (you profit when market goes up) and short positions (you profit when market goes down) on BLUR. Futures have in-built leverage which acts as a multiplier to your returns. Currently, the following Blur contracts are listed on Delta Exchange.
Contract Name | BLURUSD |
---|---|
Description | Blur Perpetual |
Max. Leverage | 20x |
Margin Currency | USD |
Taker Fees | 0.05% |
Maker Fees | 0.02% |
Contract Type | perpetual futures |
Blur Futures is an agreement between two parties to buy or sell Blur at a predetermined future date and price. The futures contract derives its value from the underlying cryptocurrency, Blur in this case. Thus the price of a Blur futures contract moves broadly in sync with the price of Blur.
Trading futures is thus an alternative to actually buying or selling the underlying crypto (aka spot trading). In spot trading, you can make profit by buying Blur low and selling it at a high price. This trade however works only in a bull market, i.e. when Blur price is going up. However, in a bear market, there is no trade possible in spot trading. Furthermore, leverage trading is not possible in spot trading.
Trading Blur through futures offers several advantages over spot trading of Blur, namely ability to both long or short and get access to leverage.
You can profit from rising BLUR price by going long Blur futures. And, when BLUR price is falling, you can make profits by going short. This feature of futures trading enable you to navigate all types of market conditions profitably. Compare this with directly buying Blur. When price is falling, you can either sell your Blur or suffer losses. In spot trading, there is no way of profiting from falling prices.
If you are a HODLer, you can still use futures to mitigate price risk. Say, you hold BLUR. You can mitigate the risks you face when Blur is falling by going short BLUR futures. In this case, a short futures position acts as a downside protection by effectively locking the $ value of your portfolio without the need for selling your Blur. Judicious use of futures as hedge can make you a better and stronger HODLer.
Leverage enables you to open positions that are bigger than your trading capital. If you can open a position that is 10 times bigger than your trading capital, then you have 10x leverage available to you. The maximum allowed leverage for futures listed on Delta Exchange is as high as 100x. There are two ways of thinking about leverage:
Leverage as capital efficiency driver: For opening a position of a given size, higher the leverage lower the trading capital required. The leverage in spot trading is always 1x, while it is 3-4x in margin trading. This means futures is 20 to 100 times more capital efficient than spot or margin trading.
Leverage as a returns amplifier: Because in a leverage trade position size is greater than the capital deployed, impact of prices moves gets magnified. The return on capital deployed is leverage times the price return. This means that you can amplify your trading gains the effective use of leverage.
If BLUR increased from $0 to $0 your return would be equal to:
In-built leverage magnifies impact of BLUR price moves on your return on capital.
Long when bullish. Short when bearish. Trade all market conditions profitably.
Deploy the capital freed up by using leverage in other trading opportunities
Low trading fees, tight spreads & deep order books of our BLUR contracts increase profitability of your trades
Set TP / SL with your order, Leverage advanced order types and instruments (Options, Interest Rate Swaps) to create hedging strategies
Use professional charts & advanced analysis tools to quickly identify trading opportunities