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What are the settlement options for trades on BitMEX?

avatarAbhijith Nair HDec 17, 2021 · 3 years ago3 answers

Can you explain the settlement options available for trades on BitMEX? How do they work and what are the implications for traders?

What are the settlement options for trades on BitMEX?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    BitMEX offers two settlement options for trades: perpetual contracts and futures contracts. Perpetual contracts have no expiry date and are settled based on the underlying index price. Traders can hold positions for as long as they want and can profit from both rising and falling markets. On the other hand, futures contracts have a fixed expiry date and are settled on that date. Traders need to close their positions before the expiry date to avoid physical delivery of the underlying asset. Settlement for futures contracts is based on the price at expiry, which can be different from the current market price. It's important for traders to understand the differences between these settlement options and choose the one that aligns with their trading strategy.
  • avatarDec 17, 2021 · 3 years ago
    When it comes to settlement options on BitMEX, traders have the choice between perpetual contracts and futures contracts. Perpetual contracts are a popular choice among traders due to their flexibility. They have no expiry date, which means traders can hold their positions for as long as they want. Settlement for perpetual contracts is based on the underlying index price, allowing traders to profit from both rising and falling markets. On the other hand, futures contracts have a fixed expiry date and are settled on that date. Traders need to close their positions before the expiry date to avoid physical delivery of the underlying asset. Settlement for futures contracts is based on the price at expiry, which can be different from the current market price. It's important for traders to consider their trading strategy and risk tolerance when choosing between these settlement options.
  • avatarDec 17, 2021 · 3 years ago
    BitMEX provides traders with two settlement options: perpetual contracts and futures contracts. Perpetual contracts are designed to mimic a traditional spot market and have no expiry date. They are settled based on the underlying index price and traders can hold positions for as long as they want. This makes perpetual contracts suitable for traders who want to take advantage of long-term market trends. On the other hand, futures contracts have a fixed expiry date and are settled on that date. Traders need to close their positions before the expiry date to avoid physical delivery of the underlying asset. Settlement for futures contracts is based on the price at expiry, which can be different from the current market price. It's important for traders to carefully consider their trading objectives and risk tolerance when choosing between these settlement options on BitMEX.