Bitmex Introduces LTCUSD Quanto Perpetual Contracts

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • BitMEX, the crypto derivatives exchange, announced on its blog that they would be launching Litecoin Quanto perpetual contracts on its trading platform.
  • This makes LTCUSD Quanto the successor of the Ethereum (ETHUSD) Quanto, BCHUSD, and XRPUSD quanto.
  • This Quanto perpetual swap contract was announced on Tuesday. 

BitMEX, the crypto derivatives exchange, announced on its blog that they would be launching Litecoin Quanto perpetual contracts on its trading platform. This Quanto perpetual swap contract announced on Tuesday. 

Litecoin Quanto becomes the newest product to launch on the exchange. This makes LTCUSD Quanto the successor of the Ethereum (ETHUSD) Quanto, BCHUSD, and XRPUSD quanto. The LTCUSD quanto perpetual swap testnet is live right now. However, the final product will be released on 30th July 2020. 

LTCUSD will be the fifth contract to be launched successfully by BitMEX and will be providing a 33x leverage. 

Why should one trade LTC Perpetual?

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Traders can perform spot trading of LTC meaning one can directly buy or sell LTC. Traders usually buy low and sell high making a profit. However, further leverage trading is not possible in spot trading. Keeping this in mind, traders are advised to trade through derivative addresses. The LTC Perpetual contracts enable you to gain benefits from both up and down movement in LTC. Derivative contracts also have built-in leverage. Traders can use this leverage to trade in big amounts by using just a small amount of capital. 

Key Aspects of the Bitmex Perpetual Contracts

BitMEX will be offering initial leverage of up to 33x which is less in comparison with ETHUSD and XRPUSD who offer up to 50x. The BTC multiplier is set at 0.000002 BTC or 200 satoshis. Not only this but the maker fee is also set at -0.025% and the taker fee at 0.075%. 

The traders will get the benefit of Base Initial Margin set at 3% and the Base Maintenance Margin of 1.5%. 

The LTCUSD quanto will have an XBT multiplier, unlike the conventional dollar-denominated price. This will enable the traders to be long and short LTCUSD without touching Litecoin or Dollar. The only risk that quanto contracts face is that it can expose the traders to both the underlying and settled assets going against trade. As a result, there is a highly unpredictable bankruptcy risk. However, ‘Quanto Risk Premiums’ is one of the reasons why swap contracts are traded at different prices. 

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