About Bitcoin Perpetual Futures Contract
Cryptocurrency has gained much traction among investors, showing signs of wider-scale adoption.
Despite the ever-growing legion of cryptocurrencies such as Ethereum and Tether, Bitcoin retains its position as one of the most popular and valuable digital assets.
In May this year, Asia Pacific Exchange Pte. Ltd. (APEX) launched Bitcoin Perpetual Futures Contract. APEX Bitcoin Perpetual Futures Contract allows you to manage your risk in cryptocurrencies and gain valuable exposure in this growing asset class. It provides diversification to the trading portfolio for institutional clients and, being a futures contract, it can act as a risk minimization instrument to help your portfolio withstand price volatility in cryptocurrencies.
Orient Futures Singapore holds the exchange membership of APEX, which will allow easy access to trade products that are listed and secure the most efficient trading processes.
In this article, we will go through everything you need to know about the Bitcoin Perpetual Future Contract and what you can expect.
5 Things To Know About Bitcoin Perpetual Futures Contract
1.APEX Bitcoin Perpetual Futures Contract
Founded in 2018, Asia Pacific Exchange Pte. Ltd. (APEX) and Asia Pacific Clear Pte. Ltd. (APEX Clear) are both derivatives exchanges and clearing houses regulated by the Monetary Authority of Singapore (MAS).
The APEX Bitcoin Perpetual Futures Contract offered by the exchange follows the following specifications:
The contract size is 50 milliBitcoin/lot (0.05BTC = 50 milliBitcoin) with a minimum price fluctuation of US $0.005/milliBitcoin, and the currency is quoted in USD. The last trading day of a Contract is the last Friday of the contract month.
The trading sessions are from Monday to Friday, at these trading hours,
06:55hr - 06:59hr (Pre-opening session)
06:59hr - 07:00hr (Opening match session)
07:00hr - 18:00hr (Day session)
The last trading day of a contract on the last Friday of the Contract Month.
2.Trading Bitcoin Perpetual Futures Contract With Us
Bitcoin perpetual futures are developed specifically for cryptocurrency so that the futures will never expire and have no fixed maturity date. In theory, this should allow traders to execute high-leverage trading while incurring high liquidity risk. However, due to the speculative design of such futures, it has been banned by regulators from several countries including US and UK.
Similarly, there are requirements for trading Bitcoin Perpetual Futures with Orient Futures Singapore.
For clients based in Singapore, only accredited investors, expert investors, or institutional investors are allowed to trade the product. This restriction does not apply to clients based outside of Singapore.
3. Accredited investors, Expert Investors, Or Institutional Investors
Under the Securities and Futures Act, an accredited investor is defined as an individual whose net personal assets exceed in value $2 million or whose income in the preceding 12 months is not less than $300 000.
For corporations, net assets should exceed $10m in value as determined by the most recent audit balance sheet of the corporation.
For both individuals and corporations, the amount may differ based on the amount that the Authority may prescribe. Similarly, expert investors and institutional investors should also fulfill the criteria stated above to trade in Bitcoin Perpetual Futures Contract.
4. Benefits Of Trading With A Clearing Member
Through Orient Futures Singapore’s clearing membership with APEX, we can clear and settle trades for our clients.
APEX’s Clear System also allows clearing members to transfer Open positions held in Position Accounts registered or maintained within the Customer Member Unit. Other forms of position closing and re-opening are also made available.
Lastly, clearing exchange memberships with APEX or any other exchanges require that the firm follow a series of rules and regulations. This includes being licensed, authorized or regulated by a Regulatory Authority such as the Monetary Authority of Singapore.
5. Market News
With the crypto crash of 2022, many anticipate the market to enter a bearish state. Sites such as CNBC have also quoted the term “crypto winter”.
For certain hedge funds, previous techniques of “highly leveraged and bullish bets on crypto which came undone during the market crash” has also highlighted market volatility and a dull outlook.
With the emergence of bitcoin perpetual futures as a relatively new product, it was seen as a barometer for demand for crypto derivatives, mint reports that the market had hit record open interest in 2021, with average volumes of approximately $62 billion per day globally throughout last year.
Nonetheless, with the attention turned to the perpetual futures market, it is important to understand the usage of the contract.
Hence, learn about the terminologies here, or learn about the full clearing procedures from APEX. .
Start Trading With Orient Futures Today
At Orient Futures, we provide traders and hedgers with access to the world’s major futures exchanges, including Apex’s Bitcoin Perpetual contract.
Besides APEX, we also hold memberships with Singapore Exchange (SGX) and Intercontinental Exchange Singapore (ICE SG), providing ease of access to the products offered by the exchanges.
Lastly, we also provide premium service at an affordable cost to all our clients, being there for you 24 hours on trading days to providing a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.