Crypto Delivery (DCOIN) news

Cryptocurrency Futures Defined: How Bitget Is Leading the Way

Cryptocurrency and blockchain technology have always been playing the disruptor role over the past decade, especially in the finance sector. With their groundbreaking solutions to trust and immutability, they have brought forth a myriad of novel products with unprecedented efficiency and convenience. One such example is cryptocurrency derivatives, whose trading has become increasingly popular due to the high volatility of many cryptocurrencies. Introduction to derivative trading As its name suggests, a derivative is a type of financial contract whose value derives from its underlying asset(s) or index. Its price is often determined by fluctuations in the underlying. Derivatives can be extremely powerful in the hands of experienced traders, providing essential ammunition for risk hedging and seeking. In the traditional finance sector, common derivatives include options, swaps, futures contracts, etc. The cryptocurrency market has inherited many of these derivatives and added some of its own flares. Different types of crypto derivatives trading In the cryptocurrency market, options give traders the right, but not the obligation, to buy or sell an asset at a specific price on or before a certain date. Options can be useful for traders who wish to hedge their risk or speculate on the future price of an asset. Swaps are another type of crypto derivative that allows traders to exchange one cryptocurrency for another at a predetermined price. Swaps can be useful for traders who want to hedge their risk or speculate on the future price of a cryptocurrency. A futures (contract) is an agreement between two parties to buy and sell a particular asset - in our case, cryptocurrencies - at a predetermined price at a specified time in the future. Upon this agreement, the buyer is obligated to buy and receive the asset (known as the underlying) at the specified time (known as the expiration date), and the seller is obligated to sell and deliver the underlying at the expiration date. Right now, the one crypto derivative that outshines almost all others, one that’s overwhelmingly welcomed, is perpetual futures. As its name suggests, perpetual futures never expire. Since neither the buyer nor the seller is obligated to buy or sell the underlying, the price of perpetual futures contracts may deviate from the underlying’s spot price. The funding rate mechanism is invented to offset such deviation. Traders will either pay or receive fees periodically based on the difference between the underlying’s contract price and spot price. Like other futures contracts, perpetual futures are also traded on margin. Related articles: The Basics of Futures Trading What Is Margin Trading? What Is Leverage Trading? What Are Perpetual Futures Contracts? Bitget Futures: Operational Guidelines Bitcoin Futures Contracts on Bitget Futures trading at Bitget Launched in 2018, our efforts have resulted in a huge customer base of 8 million users from 100 countries and regions worldwide. In terms of scale, Bitget is indeed the world’s largest digital copy trading exchange, where over 80,000 professional traders have shared a total of US$20 million in profits. As one of the Top 5 globally crypto derivatives platform by derivatives trading volume, Bitget has always been dedicated to providing traders with the best experience possible. We now offer the most comprehensive range of futures products in the world so that every user can find their own solution to crypto futures trading on Bitget: 130+ trading pairs across Bitget USDT-Ⓜ Futures and Bitget USDC-Ⓜ Futures for cautious traders, Bitget Coin-Ⓜ Futures for crypto-geeks and Bitget Copy Trade for those who want to generate a passive income stream with minimum risk. In addition, we have recently launched Bitget One-Way Mode for TradFi veterans, the innovative Bitget Delivery Contracts and Bitget Index Futures to help our users manage their portfolio more efficiently (time and cost-wise). Trading futures at Bitget is as easy as it is intuitive: 1. Create a new Bitget account or log in to your existing one. 2. From the main asset page, you can choose to Deposit or Transfer funds to your Futures account. 3. Enter our Futures trading page and select your preferred trading pair. 4. Choose your margin mode, leverage ratio, price, and number for your contracts. 5. Click ‘Buy long’ or ‘ Sell short’ to submit your order. Buying long allows you to profit from the appreciation of the asset’s price while selling short does the opposite. There are two modes of margin when trading Futures on Bitget: Isolated Margin and Cross Margin. Isolated Margin mode divides your margin into each position. Should one of your positions is force liquidated, other positions will not be affected. This allows for easier margin management on single positions and is recommended for beginners. Cross Margin mode opens a margin pool and automatically moves funds between positions. Excess margin can be transferred to more risky positions to avoid undesired force liquidations. This better manages risks for complex portfolios and is often preferred by long-term investors. Margin and leverage magnify your profit as well as your loss to a great degree. We strongly recommend that you conduct adequate research and implement robust risk management and mitigation method for your maximum protection. Check out these comprehensive guides for more detailed information about our different futures trading products: Bitget Futures: Operational Guidelines The Complete Guide to USDT-Margined Futures on Bitget The Complete Guide to USDC-Margined Futures on Bitget The Ultimate Guide to Bitget’s Coin-Margined Futures Bitget Futures: One-Way Mode Bitget Index Futures: Operational Guidelines Why You'll Need Crypto Delivery Contracts: A Must-Have Manual For Traders Popular futures trading strategies for beginners There are a few simple strategies worth considering when dipping your toes in trading futures for the first time. Grid trading: Futures grid trading is going back and forth - longing low and shorting high - at a few predetermined price points - grids. This significantly reduces risks and will help you profit through market volatility. Check our Futures Grid 101 guide and try it out for yourself now: Futures Grid Trading. Dollar-cost-averaging (DCA): DCA is an investment strategy leveraged by many investors to hedge against volatility and unstable market conditions. If the asset price is going against your favor, this strategy will keep placing orders at preset intervals, trying to average out your cost. And when the asset price goes in your favor, you could potentially earn more profit since you’ve bought in at several lower price points. Check out brief guide on DCA and test this simple strategy at Bitget: Futures DCA. Or, you can start following some of our most successful traders with our Futures Copy Trading product. As the world’s largest copy trading platform, Bitget has embarked on a journey of innovation ever since our inception, making trading easy and accessible to beginners and veterans alike. You can purchase strategies directly from or subscribe to our 80,000+ elite traders, and follow their steps in each and every trade they make. Our Copy Trading product has benefited over 380,000 followers, and you’re just a few clicks away from becoming one of them! So why wait? Register now and start exploring the incredible Bitget-Verse today!

Bitget Futures: Operational Guidelines

Bitget Futures: Introduction Established in 2018, Bitget is one of the world’s leading cryptocurrency exchanges with a core focus on social trading. Currently serving over eight million users in more than 100 countries around the world, Bitget accelerated its mission to promote decentralized finance with a 1000-strong global workforce. Bitget is now the dominating crypto derivatives trading platform with multiple innovative products. The three pillars of our customer orientation are integrity, transparency, and the preservation of a true “win-win” environment for all parties involved. We also strive for an inclusive product design so that every user can find their own solution to crypto futures trading on Bitget: Bitget USDT-Ⓜ Futures, Bitget USDC-Ⓜ Futures for cautious traders, Bitget Coin-Ⓜ Futures, Futures Grid Trading for crypto-geeks, and Bitget Copy Trade for those who want to generate a passive income stream with minimum risk. New to futures trading? No worries, here are some handbooks for you to start with: Guide to USDT-Margined Futures on Bitget Guide to USDC-Margined Futures on Bitget Guide to Bitget’s Coin-Margined Futures Crypto Delivery Contracts: A Must-Have Manual For Traders What is Futures Trading? What is Margin Trading? What are Perpetual Futures Contracts? Know The Different Order Types Bitget Futures: Operational guidelines for users Modify TP/SL Users can modify the take profit (TP) and stop loss (SL) by [modify the quantity in the position] [modify the trigger price in the trigger order] [modify the trigger price in the current plan] For users: you can click the small button next to the take profit and stop loss in the position to modify the price of the take profit and stop loss. For traders: You can click the small button next to take profit and stop loss in my copies to modify the price. Notes: TP/SL in Batches You can take profit and stop loss in batches in the position. For example, if the position is 100 contracts, take profit with 5 contracts of 10 dollars, take profit with 5 contracts of 11 dollars, and so on. Preset TP/SL (1) Trigger order Users can set take profit and stop loss in advance when placing a trigger order. In the case of a trigger order, the user places a take profit and stop loss order after the trigger order is placed and completed. Notes: - When the triggered order is triggered and fully executed, the take profit and stop loss order will become effective. If not triggered and fully executed, TP/SL order will fail. - The process after the transaction is the same as the process of setting take profit and stop loss by limit order. (2) Limit order The user can set the take profit and stop loss in advance in the open order. In the case of a limit order, the user will set the take profit and stop loss order at the same time as the user places the order. Once the order is completed, the take profit and stop loss order will also be set successfully. Notes: - In this case, the number of take profit and stop loss settings is the same as the amount of orders. - Take profit/stop loss order is placed once the order is completed. If it is partially completed, the partial order will be set take profit/stop loss - Take profi t price and stop loss price can be omitted or set one, and the other one will not be set One-Click cancel orders Trigger orders can be canceled separately for Open long, Close long, Open short, and Close short. The default setting is to select all, and you can cancel all trigger orders with one click. You can also cancel all take profit and stop loss orders with one click. Trading display options You can adjust and choose your preferred trading display by - Swipe up and down to switch trading pairs - Switch between M ark Price and Market Price - Switch between Original/Basic view and Trading view - Switch the panel to the left side/ right side/ center - Adjust the height of the K-line/ Candlestick by dragging the ratio - Add/ remove Indicator options - Switch between Light mode and Dark mode theme Switch color From your personal profile setting section on Bitget app, you can choose to switch the color system between two options: Red up - Green down; and Green up - Red down. The current default is the international standard color Green is for rise/up, Red is for fall/down. Maker only (Post Only) Orders will not be executed in the market immediately, ensuring that the user is always a Maker. If the order is executed immediately with an existing order, the order will be canceled. Flash Open/Close Position Flash order: The system selects the most traded price to place an order. If the order is not filled or not fully filled, the pending order will continue at the latest traded price. Trigger Order Trigger order: The user presets the trigger condition and its execution price and quantity. When the latest transaction price or the marked price reaches the trigger price, the system will execute (limit price or flash order) set in advance and execute the order according to the filled quantity. Trigger order allows you to plan your buying and selling points in advance without having to keep track of market, helping you to keep profits or reduce losses in the transaction, and achieve the purpose of take profit and stop loss. - Trigger types: market price (latest transaction price), marked price (fair marked price). - Trigger price: When the latest transaction price reaches the set trigger price, the order will be triggered and placed. - Execution price: the price at which the order is actually executed. When the latest price reaches the trigger price, the system automatically place the order price. - Quantity: The order quantity after the trigger order is triggered. See more: What is Trigger Order? One Click Reversal Reversal is used for quick opening reverse position to fast take profit or stop loss when predicting a turning point in the market or needing a reverse operation. The user's position will be closed at the market price first, and the same amount will be opened in the reverse direction. If the funds are not enough to open the same amount, the position will be opened according to the maximum open amount. Affected by factors such as margin and market conditions. Reversal operations may not be 100% successful. Two methods: (1) Reversal includes pending orders: Reversal amount equals to total amount of positions Reversal will preferentially use the remain position, if it is not enough for open the position in same amount, pending orders will be chronologically canceled. (2) Reversal does not include pending orders: Reversal amount equals to available amount Reversal amount is available amount, pending orders will not be canceled. Fast Posting/Taking Order Posting order refers to a buy or sell limit order which is according to the market price of the user's selected tier, and the number of available/liquidate assets (or the number of the market). The order func·tion can also select the Post Only effective mechanism, which will not be executed immediately in the market. If the order will be executed immediately with an existing order, the order will be canceled. If part of the transaction is not executed, the order will be immediately executed with the existing order, then the order will also be canceled, always ensuring that the user is always a Maker. When the effective mechanism is not selected, it is an ordinary limit order. Taking orders refers to buy or sell limit order which is according to the market price of the user's selected tier, and the number of available/liquidate assets (or the number of the market). The order func·tion can also choose the two effective mechanisms of IOC or FOK. If the transaction cannot be executed immediately in the market or the transaction cannot be completed, it will be canceled immediately. When the effective mechanism is not selected, the limit order default is always effective. (a) Setting explanation - After opening a posting/taking order, the default is to open a position, and the user can click Open or Close to quickly switch between opening and closing positions; - After opening a posting/taking order, you can set the order method and quantity, and the setting items will be effective for opening and closing positions at the same time; - The system for posting orders will default to the Post-only effective mechanism, and when not selected, it is a normal limit order; the system for taking orders will default to the IOC effective mechanism, and the user can set it to the FOK effective mechanism. That is, the default limit order is always effective; - The number of open positions can be selected as the ratio of available assets or the number of orders; the number of positions to be closed can be selected as the ratio of close positions or the number of orders. Among them, the order quantity of the posting order is the quantity of the corresponding tier, and the order quantity of the taking order operation is the cumulative quantity of the corresponding tier; - The user completes the settings according to actual needs and clicks Confirm. When using posting/taking orders, the system will place orders to the market according to the settings. (b) Tips - Use pending orders to open positions. If the set available asset ratio or the cumulative number of the selected market stalls exceeds the single order quantity limit of the currency contract, the limit on the number of positions held for long or short positions, and can be opened Quantity, then calculate the maximum entrusted quantity according to the limit to place an order; - Use pending orders to close a position. If the set amount of liquidation ratio or the cumulative amount of the selected market stall exceeds the limit of the single order quantity and the amount that can be squared for the currency contract, the maximum available amount will be calculated according to the limit. Entrusted quantity to place an order; - Placing a pending order is only for placing a limit order quickly and cannot guarantee a certain transaction; - If the price of the selected handicap position makes the account reach the liquidation price or the margin rate ≤ 0%, the order cannot be placed; - When the pending order is not filled, you can check the order record in the current order; the order is filled or canceled immediately, so you can check the record in the historical order. Bitget Coin-Ⓜ Futures guidelines Funding fee Funding fee is the core operating mechanism of Bitget Coin-Ⓜ Futures. The setting of the funding fee aims to ensure that the transaction price of the Coin-Ⓜ Futures closely follows the underlying reference price through the regular exchange of funding rates between the long and short parties. Notes: (1) Bitget does not charge any funding fee, which is collected between users. (2) Funding fees are generated every 8 hours, which are 07:00, 15:00, and 23:00 (UTC+08:00), you only need to pay or charge funds if you hold a position at the time of these three capital timestamps. For a better user experience, we will calculate the fees without suspending your transactions. Therefore, during the funding fee collection period, there may be delays in the calculation. For example, you may still be charged or paid if you open or close your positions at 07:00:05. (3) When the funding fee is collected, it will be deducted from the fixed margin of the user's position, at most until the user's margin rate is equal to the maintenance margin rate and a certain percentage of the remaining amount, and the excess will not be charged. The actual funding rate that users can charge also depends on the total amount deducted by the system from the counterparty's account. If the user's leverage is relatively high, the system will not charge a funding fee at some settlement points. Calculation of Funding Fee (1) The calculation formula for the funding rate you received or paid is as follows: Funding Fee = Funding rate * position value The value of your position has nothing to do with leverage and is not based on how much margin you have allocated for the position: (2) The calculation formula of the funding rate is as follows: Funding rate = {average premium index (P)+Clamp[interest rate (I)−average premium index (P), a, b) Among them, the interest rate index I=0.01%, the average premium index P is the simple average of the premium index, and the premium index reflects the premium relationship between the contract price and the spot index price. The specific formula is as follows: Premium index = [Max(0, Impact bid price-price index)-Max(0, benchmark price-Impact ask price)] / benchmark price The calculation frequency of the premium index is once every minute. (3) Impact bid and ask prices Impact bid price = the average price when the buying queue reaches the "Impact Guaranteed Amount"’ Impact ask price = the average price when the selling queue reaches the "Impact Guaranteed Amount" (4) Impact guaranteed amount The impact guarantee amount refers to the amount that can be traded with a margin of 200USDT. The specific formula is as follows: Impact guarantee amount = 200 USDT / minimum maintenance margin rate Example: The minimum maintenance margin rate of BTCUSDT is 0.5% Then the impact margin amount of the BTCUSDT contract=200USDT/0.5%=40000USDT Unrealized P/L and Realized P/L User participation in futures transactions will inevitably result in trading profits or losses. There are two types of profits and losses-unrealized P/L due to positions held and realized P/L due to liquidation. (1) Unrealized profit and loss refers to the profit of the user's unclosed position. After the current position is closed at the reasonable marked price, the estimated profit and loss amount will change with the fluctuation of the reasonable marked price. For USDT-Margined futures Long unrealized profit and loss = face value * number of positions * (current marked price-average open price) Short unrealized profit and loss = face value * number of positions * (average opening price-current marked price) For Coin-Margined futures Long unrealized profit and loss = face value * number of positions * (1/average opening price-1/current marked price) Short unrealized profit and loss = face value * number of positions * (1/current marked price-1/average opening price) For example Suppose that when the price of Bitcoin is 8,500 USDT, Xiao Ming opened a long usdt-margined futures of 10,000 futures ( BTC/USDT futures). Now the reasonable marked price of the futures is 9,000 USDT. If the fee is not calculated, Xiao Ming's unrealized profit and loss are: 0.0001 BTC * 10,000 sheets * (9,000 USDT/BTC-8,500 USDT/BTC) = 500 USDT (2) Realized profit and loss refers to the real profit and loss that occurs after the position is closed, which is calculated based on the user's opening price and closing price. For USDT-Margined futures, Long realized profit and loss = face value * closing quantity * (closing price-average opening price) Realized short position profit and loss = face value * closing quantity * (average opening price-closing price) For Coin-Margined futures, Long realized profit and loss = face value * closing quantity * (1/average opening price-1/closing price) Realized short position profit and loss = face value * number of positions to be closed * (1/closing price-1/average opening price) For example Suppose that when the price of Bitcoin is 8,500 USDT, Xiao Ming opened a long usdt-margined futures of 10,000 futures (BTC/USDT futures). Now the reasonable marked price of the futures is 9,000 USDT. If the fee is not calculated, Xiao Ming's unrealized profit and loss are: 0.0001 BTC * 10,000 sheets * (9,000 USDT/BTC-8,500 USDT/BTC) = 500 USDT Position Tier (1) Position Tier Maintain Margin Rate In order to prevent an impact on market liquidity when large positions are liquidated, Bitget's futures implement a position tier to maintain margin rate. That is, the larger the user's position is, the higher the minimum maintenance margin rate and the lower the maximum leverage that the user can select In isolated margin mode, the number of futures, tier, and the minimum maintenance margin rate required for each position are calculated separately for each direction of the position. In cross margin mode, the number of long and short positions held in both directions are combined in one tier to match the corresponding maintenance margin rate. (2) Maintenance margin rate The maintenance margin rate is used to calculate the minimum maintenance margin required by the user to maintain the current positions. When the user's margin rate is less than or equal to the user's current maintenance margin rate, it will trigger liquidation or reduce position. The relevant calculation formula is as follows: Margin rate = (position margin + unrealized profit and loss) / position value Position value = face value * number of futures * current fair marked price Bitget Coin-Ⓜ Futures Cross margin mode - The Coin-Ⓜ Futures cross margin mode support hedge mode. - Cross margin mode refers to the use of all balances in the account to counter risks and avoid liquidation. The profit and loss of any position of cross margin mode will be reflected in it. - Coin-Ⓜ Futures supports hedging of cross margin mode, that is the unrealized profit of position A can be used to offset the unrealized loss of position B, and multiple contract trading pairs can jointly resist risks. For example: if ETC is used as a margin, the long position of BTCUSD gains 10ETH, and the long position of ETHUSD loses 6ETH, then the equity in the ETH account is 4ETH profit Note: For trading pairs that use BTC as a margin, such as holding BTCUSD, this position is not concluded in hedging in transactions that use ETH as margin. Estimated Liquidation Price When the futures price reaches a certain value and the unrealized profit and loss reaches a certain level, the margin rate reaches the minimum maintenance margin rate, the maintenance margin rate is equal to the minimum maintenance margin rate, and the price is called the estimated liquidation price. Margin rate For (Coin-margined) margin rate = (Position margin + unrealized profit and loss) / position value = (Position margin + unrealized profit and loss) / (face value * number of position futures/ latest marked price) For USDT-margined Futures margin rate = (Position margin + unrealized profit and loss) / position value = (Position margin + unrealized profit and loss) / (face value * number of position futures * latest marked price) Maintenance margin rate In order to prevent an impact on market liquidity when large positions are liquidated, Bitget's futures implement a position tier maintenance margin rate system. That is, the larger the user's position is, the higher the minimum maintenance margin rate is, and the lower the maximum leverage that the user can select. In the isolated margin mode, the number of position futures in each direction, position tier and the minimum maintenance margin rate required for the position are calculated separately, More guidelines and tips can be found at Guide to USDT-Margined Futures on Bitget Guide to USDC-Margined Futures on Bitget Guide to Bitget’s Coin-Margined Futures

Bitget Bites (December 23, 2022)

The global market cap is standing at US$814 billion, showing a 0.38% increase from yesterday and the 24-hour volume also went up by 16.55% to US$29.60 billion. Our report on activities of the Spot Market and Futures Market are below: Spot Market Updates Bitcoin has been trading between US$16,885.88 and US$16,599.91 within the last 24 hours. As of 3:30 AM UTC, BTC price stands at US$16,861.51, which is a 0.07% increase compared to Ethereum's 0.79% increase. Altcoin prices are seeing green, with no altcoin in the Top 10 trading above the volume of US$1 billion. The highes t price and lowest price levels of BGB in the last 24 hours were US$0.1954 and US$0.1869, respectively. The Top 3 Gainers of The Day are Synapse (SYN), pSTAKE (PSTAKE), and StreamCoin (STRM): 1st Place SYNUSDT: Up by 9.07% Synapse is an interoperability protocol designed for safely and securely sending arbitrary data between blockchains. SYN is trading at a current market price of US$0.5531, having touched a high of US$0.5825 and a low of US$0.4236 in the past 24 hours. 2nd Place PSTAKEUSDT: Up by 7.49% pSTAKE is a liquid staking solution that unlocks the true potential of PoS tokens by unlocking liquidity of staked assets. PSTAKE is trading at a current market price of US$0.6697, having touched a high of US$0.06745 and a low of US$0.05955 in the past 24 hours. 3rd Place STRMUSDT: Up by 5.59% StreamCoin is built to power the ecosystem of live streaming platforms by providing new and unique features. STRM is trading at a current market price of US$0.0151, having touched a high of US$0.0152 and a low of US$0.0134 in the past 24 hours. Meanwhile, the Top 3 Losers include BTTUSDT">CSTUSDT (-34.06%), CMPUSDT (-15.36%), and KINUSDT (-13.85%). Futures Market Updates Future activities are warming up, with the Open Interest (OI) of all cryptocurrencies now recorded at US$3.66 billion, equivalent to a 3.71% 24-hour increase. The aggregated futures volume saw a 45.90% increase to US$352 billion. Bitcoin remained the most popular underlying asset for Futures traders and, obviously, the most liquid market: Bitcoin OI Dominance accounts for 68% of the total OI, now standing at US$2.50 billion, which shows a 4.64% increase from yesterday. The daily volume of Bitcoin contracts increased by 20.21% to US$172,760.25. Funding rate of the last cycle stands at 0.0000%. Bitcoin Long/Short Ratio reflects the market sentiment on this flagship coin, now bearish at 43.0%/57.0%. Most BTC long ETFs locked in a price increase yesterday, same goes for the highly anticipated ProShares' Short Bitcoin Strategy ETF (BITI), which closed the day at US$39.77 from the opening price of US$39.74. Interesting Topics Why You'll Need Crypto Delivery Contracts: A Must-Have Manual For Traders Digital Assets Could Become A Safe Haven Against An Economic Downturn Why Most Traders Lose Money Follow Us For More Insights: Twitter | Telegram | LinkedIn | Facebook | Instagram

Why You'll Need Crypto Delivery Contracts: A Must-Have Manual For Traders

We are here to help you get to know delivery contracts, the emerging type of crypto derivatives. Continue reading to learn about delivery contracts and why you should add them to your portfolio. What are Delivery Contracts If you are an experienced trader, you must be familiar with perpetual contracts or ‘perps’. If you are new, welcome and be an avid reader - we have several guides around the topic of trading for you to devour after you’ve finished this article: Crypto trading terminologies for beginners What is Futures Trading? What is Margin Trading? What are Perpetual Futures Contracts? A beginner’s guide to crypto trading strategies (Volume I Volume II) Anyhoo, a futures contract in traditional finance (TradFi) is an agreement between two parties to trade a particular asset at a predetermined price at a specific time in the future. When it comes to crypto, we have revolutionised trading with the invention of Bitget perpetual futures - a special type of futures contracts that never expire, meaning you can open/close your position 24/7 and hold them for as long as you want. The beauty of perps lies in the fact that crypto markets are ever-wakeful; we are always on the watch for profitable opportunities. But we are also adopting the TradFi standard: delivery contracts, which are simply futures contracts that have an expiration date. Apparently, the term delivery says that something will be delivered to your account at expiration, meaning you have the chance to lock in a future price of a cryptocurrency and benefit from the difference between the locked-in price and the market price when the contract is closed. That ‘something’ can either be the underlying asset or cash. Most crypto derivatives are settled on a cash basis. Below is a summary of perps and delivery contracts: Element Delivery Contracts Perpetual Contracts The underlying Any asset Any asset, mostly known for cryptocurrencies Expiration date Yes No Settlement method Cash settlement Physical settlement* Cash settlement Cost payments Once at settlement Three times daily** Asset ownership No No * Physical settlement is usually not available in crypto derivatives markets ** Time frame of funding fees will differ between exchanges/brokers Why do we need Delivery Contracts? We are at an unprecedented time in history. Never before has crypto been more welcomed than these days, and never before has it been more lucrative. However, crypto ownership may not be the best option out there due to unclear regulations. Futures give us a way out; we can take advantage of a price position without having to hold or own any crypto asset, and derivatives markets are significantly more liquid. Now let’s get back to the table above. Delivery contract owners have to pay a one-time fee at settlement before the delivery of gains (or losses) takes place. Compared to perps’ funding fees that incur three times a day, delivery contracts appear to be a much more economical choice for long-term traders. Mind you, delivery contracts also serve the purpose of hedging, therefore adding delivery contracts to your portfolio is a sensible move, risk-wise. And a big note here.. Bear markets and sideways are definitely not for the faint of heart, as well as traders who are prone to FOMO (fear of missing out). Therefore investing in delivery contracts can protect impulsive traders from themselves - no more quick open/close then regret! From an advocate point of view, the emergence of delivery contracts is important to the price discovery process for cryptocurrencies, i.e. it gives spot market participants a hint of what market expectations (at a later time) are and allows them to adjust their bid/ask price accordingly, which contributes greatly to the establishment of a fair and efficient price. For arbitrageurs, delivery contracts reveal when and at what price they can deploy their buy/sell plans. That is the one thing missing from perps, as the perps price closely follows the spot price thanks to the funding rate system. Trading Delivery Contracts on Bitget As the leading crypto derivatives exchange, Bitget has already released a spectrum of products vital to the sustainable development of the digital space. Our curated financial instruments include: Bitget Coin-Ⓜ Futures, Bitget USDT-Ⓜ Futures, Bitget USDC-Ⓜ Futures, Bitget Copy Trade, Bitget Spot Trading, and now Bitget Delivery Contracts, together with powerful tools (Bitget Futures Grid, Bitget Spot Grid) and a variety of DeFi-inspired services. A complement to Bitget-verse Current pairs available for Bitget Delivery Contracts are BTCUSD and ETHUSD, which will be settled on BTC and ETH, respectively. We already mention that delivery contracts are of big help for hedging, but it also creates arbitrage opportunities. That is, you can head to Bitget Spot Trading, scoop up some Bitcoin and sell your delivery contracts if (delivery) contract price is higher than spot price and vice versa. Meanwhile, traders can still ride the waves with adjustable orders (open, close, position reduction, TP/SL) via our Coin-Ⓜ Futures, USDT-Ⓜ Futures or USDC-Ⓜ Futures. Portfolio planning and strategy optimising have never been more convenient! Of great finesse We pay attention to every little detail to make Bitget Delivery Contracts as refined as possible. Take the contract name as an example: The name of Bitget Delivery Contracts consists of the underlying pair and the expiration date (BTCUSD1230, BTCUSD0331, etc.). We put ourselves in the user’s position and choose the most self-explanatory name so that our users never get confused. Besides, Bitget Delivery Contracts also offer multi-currency margin. For now Bitget traders can use USDT, USDC, BTC, ETH, XRP as margin; more options will be introduced later. This should work well for seasoned traders as well as users who want to utilise their crypto holdings. Talk about efficiency. When it comes to costs, Bitget Delivery Contracts are automatically settled at the Taker rate. That is the only payment delivery contract traders will have to make. Suitable for any level of risk tolerance Any trader can find a way to take advantage of Bitget Delivery Contracts as we embrace a risk management-oriented philosophy that involves the three following factors: (1) Product design: Bitget Delivery Contracts will be first available for 3-month periods, i.e. in the form of Quarterly Delivery Contracts. We believe this should be the basic interval as traders can employ lucrative schemes without being affected by general, day-to-day events, whereas it would be more difficult to pinpoint the suitable strategy for a longer period of time. In short, we are trying to prep our users for more advanced strategic trading tools to come with the intro of Bitget Quarterly Delivery Contracts. Please note that new contracts for the quarter after next will be generated right after settlement of the current quarterly contracts, allowing a continuous observation of market activities that is represented by the stochastic indicator K-line and preventing any possible confusion that stems from overlapping contracts. More about K-line can be found here. (2) Settlement: Settlement will occur at 8:00 AM (UTC) on the last Friday of each quarter, where the m ark price is calculated, liquidations are triggered and delivery of P/L takes place. Mark price for Bitget Delivery Contracts is the sum of the index price and the average of the differences between order prices and the index price taken 1 hour before the delivery time, with the index price calculated by taking the weighted average of spot prices from various exchanges other data sources. This action will ensure fair price (minimise the probability and/or impact of price manipulation on one single exchange) and be of huge advantage to our users, as some exchanges capture prices over a 1-hour period to calculate the mark price, making delivery contracts more prone to getting liquidated. We also apply strict rules for settlements to offer a faultless settlement process: • No manual closing allowed during settlement/delivery; • No contract opening allowed in the first 10 minutes of settlement/delivery; • Contracts that are not closed manually will be automatically settled and delivered. (3) Bitget’s intervention: In extreme market conditions where users can be heavily affected, Bitget will decide between these two options: • Conduct delivery before triggering liquidations • Delay the settlement and delivery process until further notice The whole meaning of our intervention is to protect users’ funds from any potential market manipulation or adverse situations. 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