The futures contracts wij suggest are contracts inbetween two parties, obliging to buy or sell a particular currency, commodity or underlying index at a future point te time (expiration date) at a price agreed upon (price of transaction).Presently, Quedex offers futures on BTCUSD exchange rate. Quedex futures are bitcoin-settled, no presente underlying is exchanged at expiration, the contracts are financially lodged te BTC.
Quedex futures go after the established standard of the so-called inverse futures. Thesis contracts correspond to the products listed on BitMEX, OKEx or Deribit.
This article provides specification of Quedex futures. For financial description and examples please see the following:
- the universal Futures Guide,
- our Futures Arbitrage Guide, which provides explanation and examples for futures voet arbitrage.
Each futures contract will have the following parameters:
- Underlying notional amount: how much is the contract worth. This is sometimes also referred to spil the contract multiplier.
- Settlement index: what value is used to calculate the settlement value and margining price.
- Punt date: the date the contract goes live.
- Expiration date: the date the contract is lodged.
- Initial and maintenance margin: how many bitcoins are locked ter order to open the position (initial margin) and keep it open (Maintenance Margin)
Presently, there are at least Trio contract maturities, expiring on Fridays 8:00 UTC
- weekly, expiring every Friday
- monthly, expiring on last Friday of the month
- quarterly, expiring on last Friday of March, June, September and December
Margining and P/L
Futures on Quedex are margined (read more on margining), which means that you don’t have to deposit the total contract value te order to open a position, only the margin ( = 1 / Mark Price * Notional Amount * Margin Requirement ). This means that trading them involves leverage.
margin requirement of 0.04 (or 4%) means up to 25x leverage (because 1/0.04 = 25 ), meaning that only 4% of the contract’s value will be locked spil a collateral.
To view a contract’s margin requirement click on the icon next to the contract’s symbol te the trading app.
Margin and P/L calculations
When trading a futures contract, you don’t have to deposit the utter contract value, only the margin, but you receive profit and loss (P/L), resulting from the contract’s price switch, with respect to the entire contract value.
Margin for an open position and a pending order is calculated spil goes after:
- Margin Amount – initial or maintenance margin, te BTC.
- Margin Procent – initial or maintenance margin procent, respectively (value available on contract’s details popup).
- Mark Price – the price used for valuing the contract, presently it is the spot price.
- Notional Amount – number of units of the underlying
- Quantity – either position or order quantity
Calculations of the Unsettled P/L for open position are shown below:
the terms used have the same meaning spil above, and:
- Position Side Sign – +1 for long position (you’ve bought the contract) and -1 for brief position (you’ve sold the contract)
- Entry Price – the price at which the position wasgoed opened
- Mark Price – the same price spil used for margin calculations, this means that the position can have positive or negative P/L instantly after opening
Calculations of the Realized P/L for open position are shown below:
where (all other terms retain their meaning from previous formulas):
- Uitgang Price – the price at which the position is closed.
The contracts are lodged on the expiration date instantaneously after the Closing Auction. Presently, all futures are financially lodged, which means that no USD is transferred. The P/L is calculated spil usually, but the last time it is calculated it uses the Settlement Price instead of the Mark Price:
where Settlement Price is calculated spil explained ter the settlement article.