To stay ahead of the market and setting the precedence in this cryptocurrency unchartered territory, Crypto Facilities are launching perpetual Futures markets for their customers.
Crypto Facilities is not an exchange but rather a cryptocurrency trading platform and though it is regulated by the Financial Conduct Authority, the platform will be the first in the world to offer various futures products with real Bitcoin, XRP, Ether, Litecoin and Bitcoin Cash as collateral in a market that’s accessible every day of the week.
What is Futures?
According to Investopedia, a Future Contract is “a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange.”
How Futures Work at Crypto Facilities
Considering Crypto Facilities option, their Futures won’t have a specific expiry or settlement date but in their trading platform, settlement procedures will be executed every four hours.
Since everything depends on the underlying asset which in this case would be the spot prices of Bitcoin, XRP or ETH depending on your preferred Futures, a trader can decide to stop earning revenue by exiting his or her open position anytime they wish.
Payouts will be continuous and it all depends on the set rate of funding at the end of the last period. On top of this, everything will be settled for cash and there would be no storage of any XRP once settlement is complete.
Futures Market Available
Crypto Facilities will provide BTC/USD, ETH/USD, LTC/USD, BCH/USD and XRP/USD inverse Futures Contract while XRP/BTC will be a Vanilla Perpetual Futures contract.
All of these Future products can be traded on margin meaning a trader short of capital can borrow funds from the broker and leverage his capital anywhere between 10 and 100.
Overly, this new development would mean more money and therefore liquidity in the XRP and other supported market. This translates to stability and an inevitable increase in market capitalization.