Bitmex funding explained

As of today, Bitmex perpetual inverse futures contract, also known as the perpetual swap, is the most liquid market for the BTC/USD pair. If you haven't heard about it, I suggest you start here: What is bitmex.com perpetual swap contract? If you're new to inverse futures, you should also read these…

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How interest rates affect bitcoin futures price

Being aware of the interest rates at which traders can borrow and lend their USD or BTC is crucial as it can tell you a lot about the market sentiment and, possibly, let you make riskless profits with arbitrage. In bull markets, there's usually a high demand to go long…

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What is bitmex.com perpetual swap contract?

A Bitmex perpetual swap contract is an inverse futures contract which has no settlement date and never expires. Each contract is worth 1 USD and traders can hold open positions for as long as they want. If you're not familiar with futures and more so with inverse futures, please check…

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A simple explanation of the interest rate swap

You can go short or long on interest rates with interest rate swaps. For example, you take a $100,000 loan from a bank with a fixed interest rate of 5%, and a year from now, you will have to repay $100,000+5% = $105,000. If the rates rise throughout this year,…

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What is okex.com insurance fund and a clawback rate?

A significant advantage of the bitcoin futures platforms is a bigger leverage than in spot markets like Bitfinex or Kraken for example. Okex.com provides trading with up to x20 of your capital, meaning you have to put only 5% worth of each $100 contract (100%/5% = x20). If you're not…

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Cross-margin vs. fixed margin at okex.com explained

Trading on margin with high leverage is one of the most significant advantages of futures compared to trading a spot market. If you are only starting familiarising yourself with margin trading of futures contracts, I suggest you read this article first: Basics of margin trading Bitcoin futures. Okex.com, being the…

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Crypto Facilities launching Litecoin futures trading

United Kingdom crypto derivatives exchange cryptofacilities.com announced today that they would be launching a Litecoin futures trading in two days. The instrument will be working just like any other inverse futures with weekly, monthly and quarterly settlement periods. According to the statement of Crypto Facilities CEO, Timo Schlaefer, the strong…

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Basics of margin trading Bitcoin futures

Margin trading is the practice of buying or selling an asset with borrowed funds while the asset itself serves as collateral against your debt and can be sold (bought) to repay it. Example: you have $1,000 in your account and can borrow up to twice the amount you have, this…

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Understanding non-linear nature of inverse futures

As of today, inverse futures contracts, devised back in 2011, are the most popular derivative for trading Bitcoin and other cryptocurrencies, with volumes reaching billions of dollars in a single day. As you probably know, these derivatives are not your usual direct futures contracts and are a bit more complicated.…

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Spot trading vs. inverse futures trading

Before proceeding, it would be best if you read these two articles to get a better understanding of inverse futures contracts: What is inverse Bitcoin futures contract? Understanding okex futures basic mechanics Trading on the spot means trading a non-derivative pair like BTC/USD on a regular exchange (Bitstamp, Coinbase, et…

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