Futures contracts let traders go long or short on the future price of Bitcoin.
These types of contracts need to be settled upon expiry; either in cash or by delivery of the underlying asset. Futures Contracts, are also referred as outrights. These contracts on Bitfex will be cash-settled.
Quarterly Bitcoin Futures
Bitfex quarterly futures for Bitcoin will be cash-settled in BTC. This means, there will be only transfer of profit/loss at the time of settlement based on expiration price between the traders.
Bitfex quarterly futures for Bitcoin are settled every three months. Settlement will happen on the last Friday of the contract expiration month at 08:00:00 UTC and a settlement fee equal to the taker fees for the contract will be charged.
Each futures contract on Bitfex will be listed with a month code and year code, which denote its time of expiry. For instance, a contract expiring in December 2019, is listed as BTCZ19, where Z in the month code and 19 is the year code.*
Unrealised profits are always in real time added to the NAV. Unrealised PnL is calculated on the basis of Mark Price, not the Last Traded Price.
|Underlying Index||Bitfex BTC Index|
|Symbol||BTC[Month Code][Year Code]|
|Contract Size||1 USD|
|Instrument Type||Inverse Futures|
|Price Quotation||US Dollars per 1 bitcoin|
|Tick Size||0.5 USD|
|P&L Settlement||Cash Settled in BTC|
|Contract Expiration||Last Friday of the contract expiration month at 08:00:00 UTC|
|Position Limit||500,000 contracts. To increase limit contact us at firstname.lastname@example.org|
|Fees||See Fee Structure for complete breakdown as per profile|
The Mark Price for Futures Contract is the average of Best Bid Price and Best Ask Price.
If there are no bids or no offer or both bids and offers are missing then BTC Index price will be the Mark Price of the Futures contract.
You want to take a 100000 position in BTCZ19, when it is trading at $10000. Let IM = 5% and MM = 3% BTC Value of position in BTCZ19 = 10000/100000 = 0.1 BTC IM = 5% of 0.1 = 0.005 BTC MM = 3% of 0.1 = 0.003 BTC Suppose the price of BTCZ19 when you decide to exit is $12000, then PnL = [1/Entry Price - 1/Exit Price] * No. of Contracts = [1/10000 - 1/12000] * 100000 = 1.66666667 Net Profit = PnL-IM = 1.66666667 - 0.005 = 1.66166667 Net profit in USD = 1.66166667 * 12000 = $19940