BitMEX Launches New ETHUSD Contract with BTC Multiplier

BitMEX, a leading crypto futures exchange, announced its new ETH/USD futures contracts which will be up for trading from May 5.

Though the new derivatives contract will allow traders to bet on ETH prices against USD, the settlement will be done in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.

“ETHUSD quanto futures have a fixed Bitcoin multiplier regardless of the USD Ethereum price,” the official announcement stated. This allows traders to long or short the ETH/USD exchange rate without ever touching either ETH or USD! Traders post margin in XBT, and earn or lose Bitcoin as the ETH/USD rate changes.”

The contracts will have a Bitcoin multiplier of 0.000001 XBT, meaning for every $1 move in the ETH prices, the trader will receive 0.000001 bitcoin regardless of the USD price of ETH.

The new futures contract will offer Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term up to 50x to the traders and will expire quarterly. The first ETHUSD contract (ETHUSD20) will expire in June.

“This contract combines the quanto feature of our ETHUSD perpetual swap with the expiry and settlement found in traditional futures. As with every BitMEX altcoin future, it expires quarterly,” the exchange noted.

Earlier this year, BitMEX also expanded its offering by introducing XRP perpetual contracts.

Raising demand for derivatives

BitMEX is one of the biggest derivatives exchanges, handling billions in trades every day. However, it recently lost its apex market position to Binance’s months-old futures platform.

Notably, the Seychelles-registered exchange saw a record liquidation since the recent crypto market dip which echoed the Coronavirus plunge of the stock market.

Meanwhile, BitMEX is one of the few major exchanges which is recently named in 11 class action lawsuits filed at a New York court.