Crypto Facilities, a Financial Conduct Authority-regulated trading platform, has announced that they would be launching new USD futures contracts for:
- Bitcoin (XBT/USD);
- Ethereum (ETH/USD);
- Litecoin (LTC/USD);
- Bitcoin Cash (BCH/USD);
- Ripple (XRP/USD); and
- Ripple (XRP/XBT).
The UK-based trading platform stated that the contracts would be perpetual. The main aim of this futures contracts is to expose the institutional investors to the leading cryptocurrencies.
According to the company, they are the first to offer Perpetual futures contracts for Ethereum, Litecoin, Ripple, and Bitcoin Cash.
We have just launched Perpetual Futures on XBT/USD.
And world’s first Perpetual BCH/USD, ETH/USD, XRP/USD, LTC/USD, and XRP/XBT contracts
Use Bitcoin, Ether, Litecoin, XRP & BitcoinCash as collateral to trade 24/7!
— Crypto Facilities (@CryptoFLtd) August 31, 2018
BTC, ETH, LTC, BCH, and XRP futures launched
The trading platform, which made the announcement via, Twitter stated that:
We have just launched Perpetual Futures on XBT/USD. And world’s first Perpetual BCH/USD, ETH/USD, XRP/USD, LTC/USD, and XRP/XBT contracts Use Bitcoin, Ether, Litecoin, XRP & BitcoinCash as collateral to trade 24/7!”
It added that all of the contracts are inverse perpetual futures, save the XRP/BTC which is a vanilla perpetual futures.
How do Perpetual futures work?
Perpetual futures contract work similar to the normal futures contract, however, there is no expiry or settlement. Instead, the settlement rolls over every four hours, hence perpetual (never ending).
The rate for the next period of the settlement process is calculated against the current period. To stop receiving revenue from the futures contract, traders will have to terminate his/her position.
The payouts in perpetual futures contracts are continuous and are based on the funding rate that was set at the end of the funding interval.
While open in the contracts, the positions will be able to send and receive funds. The company added that all the contracts are cash-settled at the moment and will not involve storing of the underlying cryptocurrency.
All of the funds are denominated in 1 USD as the contract size, except the XRP contracts, which are denominated in XRP.
Furthermore, it is not compulsory for a trader to post 100% of the collateralized assets as a margin. Trading can be done with a leverage which allows traders to only set a percentage of the asset as a margin.
Crypto Facilities keeps expanding its futures options
The trading platform ventured into the cryptocurrency world back in 2016 when it launched its crypto derivatives. Since then, the firm has been rapidly expanding its futures options.
Barely two weeks ago, Crypto Facilities launched BCH-USD futures. The release of the perpetual futures contracts on BTC, ETH, LTC, BCH, and XRP gives crypto investors more diversity for investments in the before-mentioned cryptocurrencies.
This fact could also translate into more money making its way into the cryptos markets.