A Financial Conduct Authority-regulated exchange – Crypto Facilities, recently announced that they want to launch new futures contracts for XRP (XRP), Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Bitcoin Cash BCH. The firm also said that these contracts would be perpetual.
The Announcement of Crypto Facilities on Twitter
The announcement by the firm on Twitter states, “They have just launched Perpetual Futures on XBT/USD, and the first perpetual XRP/XBT, XRP/USD, LTC/USD, ETH/USD, and BCH/USD contracts in the world use XRP, Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) as collateral to trade twenty-four hours, seven days a week.”
All the contracts except the XRP/BTC are inverse perpetual futures, and the remaining ones are vanilla perpetual futures. To understand what perpetual futures contracts are, you need to first understand the concept of “futures contract.”
Future contracts are a sort of derivative products which are represented by a contract to trade an asset or a commodity at a given time in the future. Nevertheless, perpetual futures contracts do not have settlements or expiry period. Rather, there is a process of settlement that occurs every four hours on the platform.
The rate for the next settlement process period is calculated over the present period. To stop receiving revenues from futures contracts, the trader needs to terminate their position. There is a continuous payout system, but it is based on the funding rate specified at the end of the funding interval before that.
As futures contracts don’t require traders to post all their collateralized coins as a margin, they are allowed to trade with leverage. Leveraged enables traders to only specify a fraction of their asset as a margin, and hence trade for ten times or one hundred times the leveraged amount.
XRP (XRP) Price Today – XRP / USD
At the time of writing, XRP is changing hands at $0.3384 after an increase of more than two percent over the past twenty-four hours. The current market cap of the digital currency is $13.42 billion and its trading volume over the past twenty-four hours is $220.09 million.