KuMEX, the derivative arm of leading cryptocurrency exchange KuCoin, today launched its Bitcoin quarterly futures contracts.
KUMEX’s Getting Edge at the Game of “Derivatives”
The contracts are being touted as different from perpetual contracts available on exchanges. Unlike other contracts that come with an expiry date and are settled with a price derived from the underlying asset, KuMEX’s delivery contract will be settled on the last Friday of the contract month. The price for the same will be calculated at a 30-minute time-weighted average price (TWAP) of the spot index at 12:00 UTC on the delivery date.
Per the announcement, the platform will list the quarterly contracts for two years.
“If today is May 1, then the contract month will be June and September. Traders can identify the contract month according to the contract ticker. For example, the ticker for a Bitcoin contract to settle in December 2019 is XBTZ19.”
the announcement reads
Recently, KuMEX listed Bitcoin perpetual contracts against USD. Furthermore, it offers 20x leverage to traders. In order to provide the traders with an actual price of the Bitcoin Spot Index, the platform uses a volume-weighted average US dollar price of Bitcoin across six major crypto exchanges. The list of exchanges includes Bittrex, Kraken, Gemini, Liquid, Coinbase Pro and BitStamp. The platform has kept a negative maker fee of 0.025% and the taker fees have been set at 0.060%.
KuCoin To Add Margin Trading For Its Platform
In another development, KuCoin announced that it will roll out margin trading on the 31st of October. The facility of margin trading will allow traders to leverage borrowed crypto assets as principal in their transactions. Also, the users will have the ability to bet on short positions and sell the lent crypto. While the leverage multiplier for margin trading continues to be in close wraps, the platform will be offering a 20% discount promotion for traders and investors using KCS and pay the margin trading transaction fees.
How advantageous will be Bitcoin’s Quarterly Futures contracts? Let us know, what you think in the comments below!