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.

Understanding Perpetual Contracts

The Index Price

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
CrossTower to Acquire BEQUANT and Launches the Industry First ESG Crypto Fund
New York, Monday, November 28, 2022 – CrossTower, the global cryptocurrency trading platform, announced that it has reached an agreement to acquire BEQUANT, a leading prime brokerage and digital asset exchange, for an undisclosed amount. CrossTower also announced the launch of the first ESG Crypto Fund in partnership with the Lydian Group to invest in and rebuild companies that have promising futures. BEQUANT, with its institutional trading and prime brokerage platform, will enable CrossTower to expand its suite of professional grade products for a global market, covering the U.S., Bermuda, Europe, Latin America, and Asia. Through this acquisition, CrossTower will add over 600 professional exchange clients, generating ove $400 billion of yearly turnover with more than a dozen exchanges connected its platform. The ESG Crypto Fund will invest in companies focused on: 1) Environmental – The industry must become smarter at managing energy costs, given the reduced asset pricing and
Education
CrossTower, other crypto firms line up bids for bankrupt Voyager Digital after FTX collapse
News and Events
CrossTower Considers Own Crypto Fund Alongside Voyager Bid
CrossTower Considers Own Crypto Fund Alongside Voyager Bid By Emily Nicolle November 23, 2022, at 11:26 PM GMT+5:30 Crypto exchange CrossTower Inc. is considering further acquisitions beyond its bid for the assets of bankrupt crypto lender Voyager Digital, a deal revived this month after Voyager’s original buyer FTX Trading Ltd. itself filed for bankruptcy. CrossTower is among several companies reviving or exploring new bids for Voyager. Asset manager Wave Financial is weighing up a return to the process after participating in the previous auction, a person familiar with the matter said, while the US arm of crypto exchange Binance is also said to be interested this time round, CoinDesk reported. Wave declined to comment. FTX won a weeks-long auction to buy Voyager’s assets in September, but Voyager’s main bankruptcy attorney said the deal is no longer going ahead after FTX itself filed for Chapter 11 bankruptcy this month. The sale was valued at about $1.4 billion,