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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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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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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What are futures contracts?

A future is an exchange-traded forward contract. Commodity producers and goods manufacturers have used forward contracts for many years. For example, the producer of coffee beans may want to lock in the price at which he will be able to sell his harvest. In this way, he protects his business…

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How does option contract work?

An option is a financial contract between two parties - option writer (seller of the contract) and option holder (buyer of the contract). Holder receives a right to buy (call) or sell (put) a specified financial asset at a predetermined price (strike price) during a period of contract validity or…

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