First, permanent contracts in encrypted currencies are commercial products that allow traders to predict the exchange rate between the basic currency and the quoted currency.
This article will provide XBTUSD Perpetual contracts provided by BitMex and compare them to other cryptocurrency trading products – highlighting the advantages of permanent bites and why it is a common option for merchants, especially professional merchants.
What is the permanent XBTUSD?
XBTUSD It is a swap where buyers and sellers pay the dollar and bitcoin benefit in exchange for prices. The following figure shows the structure of the swap. For a more deep introduction in permanent bites, click here.
Please note that XBT is what we call Bitcoin on Bitmex, just like some other BTC platforms.
XBTUSD traders give the opportunity to predict the approval of the exchange rate between Bitcoin and the US dollar – where the XBT basic currency and the quoted currency are the US dollar.
In bitmex, we offer the highest financial crane for this contract, up to 250 times. For more information about the permanent XBTUSD contracts, please clickhere
Below is a comparative matrix for XBTUSD, Spot, margin and futures
| He writes | lever | expiration date | Physical delivery |
| XBTUSD | High | never | no |
| Trading spot | no one | never | Yes |
| Margin trading | a little | never | Yes |
| Futures trading | High | Ownership | no |
XBTUSD Perpetual exchange for the coded currency spot trade
Bitcoin trading on a spot is the gate to enter digital currency trading. If you want to buy Bitcoin, you should pay the full value of the dollar. If you want to sell Bitcoin, you must have the total amount of Bitcoin you want to sell.
Since Bitcoin and the US dollar are physically delivered by the opposite parties, no influence or abbreviation can be used. XBTUSD is a product from point to point (P2P) -Long versus Short. There is no material delivery from Bitcoin or USD, so trading and shortcut is allowed to benefit. This is a great opportunity for familiar merchants and experience.
Imagine you want to buy 10 bitcoin currencies for $ 29,000. If you are trading on a spot, you must have $ 290,000. However, with the XBTUSD Perpetual contract, you just need to use one bitcoin as a margin for long sites.
Imagine you want to sell 10 bitcoin currencies. If you are trading on a spot, you must have 10 bitcoins. While you are with XBTUSD, you just need to use one bitcoin as a margin for short situations.
Permanent XBTUSD exchange for trading cryptocurrency margin
Trading of cryptocurrency margin or topical trading to benefit is a common way to trading bitcoin. She is still trading in the instant request book – however, to go for a long or short period, you need to borrow the US dollar or bitcoin.
Likewise, since Bitcoin and USD are still physically delivered in the instant order note, the financial lever cannot be very high.
On the contrary, the permanent XBTUSD contracts have long been, without the need to change the US dollar or bitcoin. This means that the effective financial lever can be much higher – the maximum amount of XbTusd’s financial leverage on a point is 250 times.
XBTUSD Perpetual exchange for trading in the cryptocurrencies
There are already similarities between permanent XBTUSD contracts and trading futures for cryptocurrencies. None of them is physical delivery, and both provide a financial lever.
However, the main defect of futures contracts is that they have expiration dates. Many stencils and dealers want a high crane, but they do not want their sites to end in an arbitrary history. To meet merchants with different temporal preferences, coded currency exchanges are listed by futures contracts that provide different expiration dates. This leads to a decrease in liquidity.
Because of the permanent swap structure, XBTUSD does not have the expiration date. XBTUSD will remain open until it is closed or subject to negative price changes. This makes it attractive to each of the long -term and short -term merchants who trade the same product, thus increasing liquidity.
In addition to creating XBTUSD, Bitmex is also one of the few exchanges that continue to innovate and provide increasingly encrypted currency derivatives. You canhereFind all of our current products.
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