Perpetual futures trading is now available through our CrossTower Global Pro Platform
Perpetual Futures
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.
Leveraging
through speculation on the direction of prices
Profiting
from the volatility inherent in crypto
Hedging
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.
The average price of an asset according to major spot markets and their relative trading volume, so they are traded at a price that is equal or very similar to spot markets.
Mark Price
The Mark Price is an estimate of the true value of a contract when compared to its actual trading price, representing the fair value of a perpetual futures contract.
Initial Margin
Initial margin is the minimum value a user must pay to open a leveraged position. The initial margin is what backs leveraged position, acting as collateral.
Maintenance Margin
Maintenance margin is the minimum amount of collateral user must hold to keep trading positions open.
Funding Rate
The funding rate is calculated based on the market performance of each instrument and consists of two parts: premium index and interest rate.
Liquidation
Liquidation takes place when the position margin is no longer sufficient for the maintenance margin, the position’s closing commission, the repayment of the compensation for the unrealized loss and the forthcoming funding write-off.
Crypto Futures FAQ’s
What is crypto futures trading?
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 doesn’t 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.
What is crypto spot trading?
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.
What does leveraging mean?
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.
Is there flexibility to long or short?
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.
How is liquidity in crypto futures markets?
Crypto futures markets provide stronger liquidity than spot markets, thus allowing traders to settle trades quickly and efficiently.
What’s the difference between futures and spot prices?
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.
Do you have specific inquiries about perpetual trading capabilities?
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News and Events
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Jordan Housman joins CrossTower to expand institutional business Jersey City, NJ, February 8, 2023 – CrossTower, Inc., announces it has hired Jordan Housman as Director of Institutional Sales. Jordan will be responsible for leading the company’s institutional sales efforts, and expanding its presence in the institutional market. CrossTower has seen significant uptick in institutional customers growth in 2023 as more traditional financial players become increasingly interested in the potential for crypto to deliver strong returns and diversify their portfolios. “As the regulatory infrastructure for securely trading crypto assets continues to develop, CrossTower expects institutional adoption is likely to continue its upward trend. We are pleased to welcome Jordan, who brings a wealth of experience in institutional sales to the team. His expertise will be instrumental in driving the company’s institutional sales efforts and furthering its presence in the institutional crypto arena as it continues to expand”, said Kapil Rathi, Chief
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