Bitcoin Futures & Perpetual Contracts Guide

Bitcoin Contracts Listed on Delta Exchange

Complete details of the futures and perpetual contracts on XBT that are listed on Delta Exchange are available below.

What Is Bitcoin

Bitcoin (BTC or XBT) 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 XBT with leverage.

What is Bitcoin Futures Trading?

Bitcoin futures are contracts that allow you to buy or sell bitcoin at a fixed price at a future time and date.

The counter parties are bound to honour the contract by either buying or selling bitcoin at the price on contract expiry. Traders can either go Long i.e agree to buy bitcoin at a fixed price on expiry in future Or Short i.e agrees to buy bitcoin at a fixed price on expiry in future.

Bitcoin Futures are used by traders to hedge their investments. Key benefits of trading bitcoin futures:

• Hedging price risk
• Speculate price movement

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Trading Bitcoin

Why Should You Trade Bitcoin Futures & Perpetual

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 bitcoin 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.

How to Start Trading Bitcoin Futures on Delta Exchange

Starting trading on Delta Exchange is a breeze. Here’s how you can make your first BTC trade on Delta Exchange:

• Register: This takes < 1min and requires on a verified email address. No other KYC is needed.
• Fund your Delta Exchange Wallet: Only bitcoins are accepted in the Delta Exchange Wallet. A unique BTC deposit address will be generated for you when you register.
• Convert BTC to USDC: All futures and perpetual contracts on Delta Exchange are margined and settled either in BTC or USDC. For USDC settled contracts, use the currency convertor to change BTC to USDC.
• Make your first trade: Now you are all set to trade on Delta Exchange!With Delta Exchange you can not only just trade in Bitcoin Futures but also trade in several other altcoins like Ripple, Litecoin, BNB coin, Ethereum futures and more

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Where to trade bitcoin futures?

Bitcoin futures trading is available on Delta Exchange. Delta Exchange offers a variety of derivative products on Bitcoin including Bitcoin futures(100x leverage), perpetual swaps(100x leverage) and daily & weekly MOVE contracts.

How do futures contracts work?

A futures contract is a promise to buy or sell an asset on a fixed date at a predetermined price. So, if a trader goes long i.e buys the 26th June BTC futures @ 8500, this implies that the trader enters into an agreement under which he is obliged to buy Bitcoin on 26th June @ 8500. The price of Bitcoin at the time of writing this post is 7554. Thus, bitcoin futures provide a viable means to investors to either speculate the price without actually owning bitcoin or hedge their risks against volatile fluctuations if they own bitcoin. Checkout articles on our blog, to learn more about trading futures.

What time do Bitcoin futures expire?

Every Bitcoin futures contract has a date linked to it. This is the predetermined date when the trader is obliged to settle his open positions, if any. This predetermined date is called the Expiry date. Delta Exchange launches Quarterly Bitcoin Futures. The expiry date of the contracts is mentioned with the nomenclature in most of the exchanges.

Why futures are better than options?

Futures have No Time Decay (Options are wasting assets meaning that their value reduces as expiry approaches given all else remains same), Liquidity (Future markets have deep and reliable liquidity as compared to options), Pricing easy to understand (If the spot and futures prices are out of alignment, arbitrage activity would occur and rectify the imbalance.)