Today, Xena Exchange launches its long-awaited crypto-settled derivative contracts trading engine in addition to its existing spot one. The contracts traded on the exchange are called Xena Listed Perpetuals, and their primary goal is to mirror the price of their underlying asset or index. From today onwards, traders can buy and sell contracts for BTC to USD (XBTUSD) with x20 leverage, which will increase to x100 with the liquidity growth. Such contracts are not new to the market, but Xena Exchange’s developers have provided some unique features for perpetuals trading.
Xena Listed Perpetuals and its key features
Xena Listed Perpetuals are a leveraged instrument with an up to 100x margin. This means the trader is fully exposed to the price movements of the underlying asset without having to pay the full price of that instrument. In this way, Xena’s perpetuals offer the potential to secure higher returns from a smaller initial outlay than investing directly in the underlying security would yield. To make the trader experience more fair and foreseeable, Xena Exchange has built in safe liquidation mechanisms that ensure the positions are liquidated only if the price movements are confirmed.
The underlying assets intended to serve as the basis for Xena Listed Perpetuals are diverse and numerous. The contracts will be launched for the main cryptocurrencies as well as indexes in the near future, with BTC and GRAM contracts as the first echelon. This will provide the traders with the opportunity to diversify their investments and use unique tools, such as a BTC mining difficulty index.
On Xena, traders can profit even when the market experiences a bear period and hedge their spot positions, as the platform features the ability to go short first. This way, there are two winning strategies: “buy low, sell high” and “sell high, buy low.”
Unrealized profit (or loss) of your active positions is settled to your account hourly. Profits can be used without any restrictions — be withdrawn or avaliable as collateral for new positions.
Xena Exchange offers the lowest trading fees in the industry. All takers pay 0.03% and all makers receive a 0.03% rebate, independent of their deposit size or trading volume. In other words, you will be paid (and not charged) for any maker’s order that results in a trade. As for spot trading, Xena Exchange charges zero commissions, which makes trading all the more appealing.
Xena Exchange offers a wide range of advanced order types that help minimize risks and limit possible losses. The order types used on Xena Exchange are described in our recent article There is an Order For Every Case Out There. Orders on Xena Exchange are never rejected and have only a 1ms latency, which makes the exchange one of the fastest in the world.
Furthermore, you can find trend analytics charts, a market barometer, and a portfolio management page with your real-time PNL and detailed information about your trading pairs.
The advantages of Xena Listed Perpetuals are thoroughly covered in the article Discovering Xena Listed Perpetuals — Leveraged Cryptocurrency-Settled Derivatives and in the Help Center.
Try trading perpetuals with the BTC to USD contract
The first contract to appear on Xena Exchange is the BTC to USD perpetual. Its full specification is available for you to read at Summary Page.
XBTUSD contracts are intended to mirror the price of BTC to USD, cleared every hour. The price of the contract is based on the .BTC3_TWAP index, which calculates the average price of Bitcoin from three exchanges — Kraken, Coinbase Pro, and Bitstamp — additionally averaged by time. The contracts are traded in lots 100,000 USD each, and the minimum position is a 0.01 lot. As the leverage is currently x20, to enter a position for a 0,01 lot, you need to have only 50 dollars (in Bitcoin equivalent) on your account.
The contract is settled in Bitcoins.
GRAM to USD Perpetuals Coming February 27
In less than a couple of weeks, the second perpetuals contract will be launched on Xena Exchange. This will be the first contract on the market for the GRAM token, which is likely to lead to an influx of new GRAM investors to the market.
The Telegram TON blockchain project was one of the most sensational ICOs of 2018, raising $1.7 billion from private investors and leaving those who missed the token sale waiting for GRAM to enter the exchanges. The launch of derivative contracts on the GRAM token means that those who missed the chance to invest will now be able to jump in and earn on the potential rate hikes. At the same time, current GRAM holders will be able to hedge their investments against possible exchange-rate drops. Before, Xena Exchange was also one of the early Telegram Passport adopters, as mentioned in the Telegram TON official blog.
Anton Kravchenko, CEO of Xena Exchange, commented on the influence of the contract launch on the actual GRAM token after it is listed on exchanges:
“Once GRAM is listed on spot exchanges, the price of the Xena Listed Perpetuals contract on GRAM will depend on the index based on the spot exchange rates. We do not offer GRAM spot trading, but we do provide market participants with an opportunity to get a long or a short position on the GRAM contract and let the market run the initial price discovery. A great deal of small buyers are there waiting to get into long positions, which is likely to rebound positively on GRAM.”
Note: Margin trading usually involves more risks than a direct investment in the underlying asset. It is important to understand that this effect may work both for and against traders — the use of leverage can lead to both large gains and large losses.
Nothing written above should be construed as an express or implied promise or guarantee, or as investment or financial advice, and is not to be relied upon in making specific investment decisions. Trading in cryptocurrencies involves significant risks. Investments are subject to rises as well as falls. Past performance is not a reliable indicator of future results. You may suffer considerable losses and potentially lose more than you have invested.