Perpetual Futures Now Available!
Perpetual futures trading is now available through our CrossTower Global Pro Platform
Perpetual futures are derivatives contracts, that unlike traditional futures contracts, are not limited to a predetermined expiration date. This allows investors to enhance their returns through capital-efficient leveraged position, making it possible to benefit even if the price of a coin declines.
through speculation on the direction of prices
from the volatility inherent in crypto
to help prevent losses resulting from unfavorable price changes
Available To Who?
Accessed via the CrossTower Global Pro platform, futures trading is available to qualified clients. It will benefit institutions – including asset and wealth managers, family offices, hedge funds, professional traders on both the buy and sell side – and sophisticated retail customers.
Understanding Perpetual Contracts
The Index Price
Crypto Futures FAQ’s
Crypto futures contracts are an agreement to buy or sell a specific cryptocurrency at a predetermined price at a specified time in the future. A futures market doesnât allow users to directly purchase or sell the digital asset. Instead, they are trading a contract representation of those, and the actual trading of assets will happen in the future – when the contract is exercised.
In a traditional spot market the trades are made directly between market participants and ‘settled’ instantly. In other words, you physically own the digital assets and have the ability to vote for major forks or stake participation.
Futures trading feature capital-efficient leveraged positions. The initial margin is the minimum value a user must pay to open a leveraged position. For example, users can buy 10 BTC with an initial margin of 1 BTC (at 10x leverage). The initial margin is what backs leveraged position, acting as collateral. Whereas, spot trading requires a greater investment. With a position of 1 BTC you can only afford 1 BTC.
In a spot market as your digital asset appreciates so will your capital. Futures Contacts, however, grant profit from short-term price fluctuations in both directions. For example, if the price of bitcoin depreciates you can profit in the downtrend as prices continue to decline.
Crypto futures markets provide stronger liquidity than spot markets, thus allowing traders to settle trades quickly and efficiently.
Prices are typically determined based on the process of supply and demand, but the markets differ through what medium the token prices are evaluated. The spot price is the prevailing price for all the transactions in the stock market, whereas the futures price is the spot price as well as the futures premium. The futures premium has the ability to be either positive or negative based on fluctuations in supply and demand. The premium will be positive when the futures price is higher than the spot price; vice versa, the premium will be negative when the futures price is lower than the spot price.
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