A delivery Futures is an agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time (named delivery date) in the future.
The XBT delivery Futures is a swap Futures to be settled at a given price in a prespecified time.
The delivery date is a prespecified date when the delivery Futures is settled. The price to settle at is a 30-minutes TWAP price of the spot index at 12:00 UTC on the delivery date. The delivery date is the last Friday of the Futures month. Traders can identify the Futures month according to the Futures ticker. For example, the ticker for a Bitcoin Futures to settle in December 2019 is XBTZ19.
The XBT delivery Futures is quoted in USD and denominated in Bitcoin. The underlying price is Bitcoin Spot Index.
The Bitcoin mini perpetual Future is aimed to replicate the underlying bitcoin spot market but with flexible leverage. The Futures has no expiration date and is designed to closely track the underlying reference Price Index via the Funding Rate mechanism.
The XBTUSDM Futures is quoted in USD and denominated in Bitcoin. The underlying price is Bitcoin Spot Index. This Index is the volume-weighted average US dollar price of Bitcoin in 6 exchanges including Coinbase Pro, Bitstamp, Kraken, Gemini, Liquid and Bittrex. The weight will be rebalanced quarterly. The profits and loss (PNL) calculation and margin are denominated in Bitcoin as well.
Traders who buy the Futures will make a profit from an increase in the Bitcoin/USD price, and the sellers will be profitable if the Bitcoin/USD price drops.
For example, a trader goes long 5 XBT at the price of 5,000 USD. He is long 5 * 5,000 = 25,000 Futures. After a few days, the price climbs to 6,000 USD. The traders' profit will be: 25,000 * 1 * (1/5,000 - 1/6,000) = 0.8333 XBT. Similarly, if the trader goes short in the first place, he will lose 0.8333 XBT in the end.
Why is a delivery Futures different from a perpetual Futures?
A perpetual Futures has no expiry date, and the Futures is available for trading permanently, while a delivery Futures has an expiry date, and will be settled to a price derived from the underlying asset according to a prespecified rule. Also, the delivery Futures has no funding mechanism and the price is ensured to converge to the price of the underlying asset based on the delivery mechanism.
KYC users in restricted countries and regions cannot open Futures trading;
Users with IP addresses in restricted countries and regions cannot open Futures trading;
Users in our blacklist cannot open Futures trading.