High liquidity focused fiat-cryptocurrency exchange, BTSE, will add futures offering as of February 2019. The new feature will include linear perpetual futures contracts, multi-currency, multi-asset collateralization and FIX support.
DUBAI, United Arab Emirates, Jan. 14, 2019 /PRNewswire/ -- In what is now a cryptocurrency bear market, volatility continues to remain high in the derivatives space. While many investors and institutional funds are intent on purchasing and trading cryptocurrencies, the lack of regulation, complex contract design and difficulty of settlement are challenges plaguing the industry.
BTSE's futures will take the trading space in a new direction. With these new features, the platform will attract not only cryptocurrency proponents but also professional traders who have previously been hesitant due to the lack of familiarity and ease of transition.
Linear Versus Inverse Futures
Common to the cryptocurrency space are inverse futures. The non-linear nature of inverse futures results in a complex mechanism of deriving profit-and-loss. Conversely, traditional future contracts embrace a linear design. Every price movement of a contract translates directly into profit-and-loss proportionally.
Linear futures make hedging straightforward for traders, eliminating the exchange risk exposure from non-linear futures. The clear benefits of linear contracts form BTSE's rationale for its choice.
A Single Platform
BTSE continues to offer services that traders have come to expect but are unable to get from other exchanges in one stop. Services include:
- Multi-currency support to attract traders globally and amass greater liquidity.
- Fiat & crypto asset support for posting margin requirements. Margin can be collateralized by fiat, USDT and other cryptocurrencies, without the need to convert cryptocurrency balances into fiat.
- Better margin control for traders who want to benefit from volatile markets without being susceptible to the volatility of cryptocurrencies.
- Linear contracts allow investors to intuitively model exit points, without the complicated calculations posed by other types of contract.
- Perpetual swap has no expiry date. The trade price will be pegged to the spot price by means of a funding mechanism.
- FIX protocol support allows for professional traders to easily port their existing strategies into the cryptocurrency space.
BTSE offers these desirable services and more to create a better cryptocurrency trading experience for users that want to invest, hedge, and diversify their portfolios.
Bridging the Gap
"Our licensed fiat-based services put BTSE in a unique and strategically advantageous position within the cryptocurrency markets," said Jonathan Leong, CEO of BTSE. "There is a great opportunity for cryptocurrency traders and institutional investors to come together within the cryptocurrency ecosystem to achieve mainstream adoption and to welcome a true era of digital finance."
"We aim to provide a suite of leveraged synthetic instruments with high liquidity in the $200 billion digital asset market," said Brian Wong, co-founder of BTSE. "The BTSE platform is designed to be an effective hedging platform for incumbent traders and as an on-ramp for retail and institutional investors."
BTSE is scheduled to launch Futures Trading in February 2019.
Press kit is available at BTSE Presskit