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How can i buy btc futures

A perpetual contract is a derivative similar to a futures contract but without an expiry date.

4 – Choose the leverage that suits your trading style and risk appetite

As mentioned in the introduction, buying or selling the BTC futures contract enables you to scale up your buying or selling power using leverage.

BTCC crypto exchange offers leverage that enable you to trade from 5X up to 100X of your capital.

6 – Set stop loss and take profit targets by toggling the S/L and T/P toggle switch

To set your take profit and stop loss levels for your trade, you can turn on the toggle button beside the “Set stop-limit” label. It is set to off by default.

Although you can buy or sell a Bitcoin BTC futures contract without setting your take profit or stop loss targets, we consider it is the best practice to always establish these levels.

The stop loss is a price level where you instruct the broker to exit your trades if it does not go in your chosen direction. In contrast, the take profit level is set to close your transaction in profit when the Bitcoin price reaches an established price threshold.

Key Terms in Bitcoin Options Trading

As a concept, Bitcoin options trading can be relatively difficult to grasp, particularly for new traders due to the technical vocabulary that is often used to describe it. Because of this, if you intended to get involved in options trading, or just want to brush up on your investment jargon, then these are the key terms you will want to understand.

Call

If you are bullish on the price of Bitcoin, then you would consider opening a call option, as this will allow you to buy BTC at the strike price, even if the market value is higher. In essence, Bitcoin call options allow you to speculate on the future growth of Bitcoin.

For example, if you buy a call option with a strike price of $10,000 and a 6-month expiration date, you will then be able to buy BTC at $10,000 in 6 months, even if the market value is much higher. You could then go on to sell this 1 BTC at a profit.

Put

If you are looking to short Bitcoin, and believe that its price will go down over the option contract term, then you would want to open a put contract. This will essentially allow you to sell Bitcoin at the strike price, even if the market value is much lower.

In essence, put options allow you to speculate on the decline in an asset’s value. After buying a put option, the more BTC goes down before expiry, the more your option is worth.

For example, if you buy a put option with a strike price of $5,000 and Bitcoin trades below this price at maturity, you will be in the money and will make a profit on the difference in value between the spot price and strike price.

Strike Price

One of the most important terms to consider when purchasing a Bitcoin option is its strike price. In short, the strike price is the price a Bitcoin option holder can buy (call option), or sell (put option) an underlying asset when the option is exercised.

For example, if you have a Bitcoin call option that is “in the money”, then you be able to buy the agreed amount of BTC at the strike price. Conversely, if your Bitcoin put option is “in the money”, you will be able to sell the agreed amount of BTC at the strike price.

Maturity

An option’s maturity date is also known as its expiration date. This is the last date by which the option must be exercised before automatically expiring. After the maturity date, the seller will no longer have any obligation to the buyer, and the buyer will be unable to exercise his or her option.

Typically options will have a fixed expiration date, this might be 1 day, 1 week or any length of time. If your option is out of the money when expiring, you will lose the amount you paid for the option.

4 – Choose the leverage that suits your trading style and risk appetite

As mentioned in the introduction, buying or selling the BTC futures contract enables you to scale up your buying or selling power using leverage.

BTCC crypto exchange offers leverage that enable you to trade from 5X up to 100X of your capital.

⚡ What are Crypto Trading Bots?

Crypto trading bots are automated software that helps you to buy and sell cryptocurrencies at the correct time. The main goal of this software is to increase profits and reduce losses and risks. These applications enable you to manage all crypto exchange accounts in one place. Many such programs allow you to trade for Ethereum, Litecoin, Bitcoin (BTC), and more with ease.

What is perpetual funding rate?

Funding rates make the perpetual futures contract price close to the index price. It is made be closer to the spot prices and cover some of the gap generated by the perpetual period of time. All cryptocurrency derivatives exchanges use funding rates for perpetual contracts and the standard unit is a percentage.

How do I trade bitcoin futures in the US?

In order to trade futures, you must open an account with a registered futures broker who will maintain your account and guarantee your trades. In the futures business, brokerage firms are known as either a futures commission merchant (FCM), or an introducing broker (IB).

Where Can You Trade Cryptocurrency Futures?

The Cboe Global Markets (Cboe) was the first American exchange to offer Bitcoin futures contracts on Dec. 10, 2017. CME followed a week later. According to data from crypto analytics firm Skew.com, the most prominent Bitcoin futures trading platforms in April 2022 were:

  • Binance: The world’s biggest cryptocurrency exchange by trading volume also accounted for a hefty $4.32 billion of the total trading volume in Bitcoin futures.
  • Bybit: Started by a derivatives trading firm in 2018, and accounts for $2.30 billion of total Bitcoin futures trading volume.
  • CME: Headquartered in the United States, CME accounts for $2.24 billion of the total trading volume.
  • FTX: A relative latecomer to the crypto trading ecosystem, FTX’s rise to popularity has been swift.
  • OKX: While it may not be as well-known as Coinbase Inc. (COIN) to U.S. audiences, OKX ranks among the world’s biggest cryptocurrency exchanges. Due to regulatory compliance reasons, OKX is not available to U.S. customers.

You can also gain exposure to cryptocurrency futures by trading cryptocurrency ETFs. There are several Bitcoin ETFs that are linked to Bitcoin futures.

Can perpetual bonds be redeemed?

Perpetual bonds, also known as perps or consol bonds, are bonds with no maturity date. Although perpetual bonds are not redeemable, they pay a steady stream of interest in forever. Because of the nature of these bonds, they are often viewed as a type of equity and not a debt.

⚡ Can beginners use derivative exchanges?

Yes, certainly, beginners can use derivative exchanges. Still, it is better to get some experience with easier trades before moving on to derivatives.

What is the difference between futures and perpetual?

A perpetual contract, as the name implies, is a futures contract that never expires. The perpetual contract uses a constant pricing/settlement process, whereas traditional futures contracts are settled once a week, month, or quarter.12 Apr 2021

Where Can I Short a Crypto in the U.S.?

You can short Bitcoin and Ether on the Chicago Mercantile Exchange or cryptocurrency exchanges authorized in the U.S.

What Is Futures Expiration In Crypto?

Bitcoin and Ether futures expire on the last Friday of the month at 4:00 pm London time.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

Binance Futures funding calculation

In addition to trading fees, users who have long or short positions also pay or receive funding payments every 8 hours.

Funding is directly exchanged between users, so it does not involve any fees paid to Binance. Funding rates are calculated every 8 hours and can be positive or negative depending on the market.

If the funding rate is positive, users who have long positions pay funding and those who have short positions receive funding.

And if the funding rate is negative, shorts pay longs. You can see your funding transactions under the ”transaction history” tab.

In the example above, if you have a 1000 USDT worth of long position, you’ll pay 0.1 USDT funding (1000/100×0.01), if your same sized position is short, you’ll receive 0.1 USDT funding.

To calculate funding, you should first calculate your position size in USDT. If your position size is 0.5 BTC, multiply it by the market price like 0.5×30,000 (if BTC is traded at 30,000 USDT).

After that, divide your position size (30,000 USDT) by 100 and then multiply it by the funding rate such as 0.01.

To calculate your futures fees and funding, you can also use our Binance fee calculator.

If you trade coin-margined pairs like BTC/USD, to calculate funding, you should first multiply the quantity of the contract you hold by the contract value.

If you have 50 BTC/USD contract, you need to multiply 50 by 100 as the each BTC/USD contract represents $100.

After that, divide $5,000 by the market price like 5,000/30,000 = 0.1666 BTC (if BTC is traded at 30,000 USDT).

Now you can divide 0.1666 by 100 and then multiply it by the funding rate to calculate the funding you’ll pay or receive.

You should especially take Binance funding rates into consideration if you will open a large position and the market is steady.

Best Crypto Derivatives Exchanges: Trade Bitcoin Future and Options

Crypto derivative exchanges offer dashboards for trading history, recent trades, and order books. Here is a list of the Top Bitcoin Derivative Exchanges. This list consists of paid and open-source tools with popular features and the latest download links.

NameBinanceDeribitBybitSupported Coins30+ cryptocurrenciesBTC or ETHBitcoin, Ethereum, Ripple, EOS.FeeTaker fee is 0.075%, maker fee is 0.025%.Maker-.02% Taker: .05%. Options.04%.0.075% taker fee, 0.025% rebate for makers.LeverageUp to 125xUp to 100xUp to 100x.WithdrawalUnder 30 minutesTake up to 3 days.Processed 3 times a day.Daily Turnover4 Billion1 billion700 MillionSupport optionsLive Chat & Email>>

How do you trade a perpetual contract?

Derivative exchanges allow traders to trade perpetual contracts with leverage by posting their assets as the margin, which means traders can go long or short with more assets than they own.30 Jun 2021

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