EQONEX, a cryptocurrency exchange recently revealed the launch of its Bitcoin Dated Futures featuring physical settlement. It marks a significant milestone in the growing product suite of the company for experienced traders. The launch will enable the traders to use widely used derivatives trading strategies in digital currency markets.
Purpose of dated futures
The aim of the Dated Futures contract help users to participate in a binding contract to sell or purchase the underlying asset. In this particular scenario, it is the purchase or sale of Bitcoin at a specified price and on a particular date in the coming days. These contracts are widely deployed for speculating in an underlying asset and also shield against frequent price movements.
Eqonex elaborated that its Bitcoin date futures are styled in the USDC (USD Coin) stablecoin and grow parallel with the price increase of BTC against USDC.
In comparison to perpetual futures that do not have a maturity limit, these futures expire on a specified time frame and dates like every quarter or month, according to Eqonex. Positions in the perpetual future remain open unless the trader makes up their mind to end the trade until the firm liquidates the trade or by implementing an offsetting date
The firm also plans to launch dated futures for extra cryptocurrencies, such as ETH (Ether) in the near future. Andrew Eldon, the interim CEO of Eqonex stated that the exchange marketplace still has a gap to serve traders better. It is especially for those traders with a desire for safe access to strategies and products from conventional finance for hedging and exploiting against the volatility that exists in crypto market trading.