Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (2024)

Understand what BTC futures are and how to use the leverage in futures to amplify your trading gains

Interested in trading Bitcoin futures with Delta Exchange?

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BTC Contracts Listed on Delta Exchange

Bitcoin futures enable you to take long (you profit when market goes up) and short positions (you profit when market goes down) on BTC. Futures have in-built leverage which acts as a multiplier to your returns. Currently, the following Bitcoin contracts are listed on Delta Exchange.

Bitcoin Perpetual100x

-GroupBuy-GroupSell

BTC Futures Contract Details

Contract NameBTCUSDTBTCUSD
DescriptionBitcoin PerpetualBitcoin Inverse Perpetual
Max. Leverage100x100x
Margin CurrencyUSDTBTC
Taker Fees0.06%0.06%
Maker Fees0.04%0.04%
Contract Typeperpetual futuresperpetual futures

About Bitcoin

Bitcoin (BTC) is the most prominent cryptocurrency in the world. It is a decentralized digital currency that functions without a central bank or single administrator. Peer-to-peer exchange of Bitcoin can happen without the need for intermediaries.

Bitcoin is also the largest cryptocurrency by market capitalisation as well as trading volumes. You can margin trade Bitcoin on Delta Exchange using our derivative (i.e. futures and perpetual) contracts. This means that you can go long or short BTC with leverage.

What is Bitcoin Futures Trading?

Bitcoin Futures is an agreement between two parties to buy or sell Bitcoin at a predetermined future date and price. The futures contract derives its value from the underlying cryptocurrency, Bitcoin in this case. Thus the price of a Bitcoin futures contract moves broadly in sync with the price of Bitcoin.

Trading futures is thus an alternative to actually buying or selling the underlying crypto (aka spot trading). In spot trading, you can make profit by buying Bitcoin low and selling it at a high price. This trade however works only in a bull market, i.e. when Bitcoin price is going up. However, in a bear market, there is no trade possible in spot trading. Furthermore, leverage trading is not possible in spot trading.

Trading Bitcoin through futures offers several advantages over spot trading of Bitcoin, namely ability to both long or short and get access to leverage.

Trade profitably in all market conditions

You can profit from rising BTC price by going long Bitcoin futures. And, when BTC price is falling, you can make profits by going short. This feature of futures trading enable you to navigate all types of market conditions profitably. Compare this with directly buying Bitcoin. When price is falling, you can either sell your Bitcoin or suffer losses. In spot trading, there is no way of profiting from falling prices.

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (1)Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (2)

Hedge Price Risk

If you are a HODLer, you can still use futures to mitigate price risk. Say, you hold BTC. You can mitigate the risks you face when Bitcoin is falling by going short BTC futures. In this case, a short futures position acts as a downside protection by effectively locking the $ value of your portfolio without the need for selling your Bitcoin. Judicious use of futures as hedge can make you a better and stronger HODLer.

Amplify trading gains with leverage

Leverage enables you to open positions that are bigger than your trading capital. If you can open a position that is 10 times bigger than your trading capital, then you have 10x leverage available to you. The maximum allowed leverage for futures listed on Delta Exchange is as high as 100x. There are two ways of thinking about leverage:

  • Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (3)

    Leverage as capital efficiency driver: For opening a position of a given size, higher the leverage lower the trading capital required. The leverage in spot trading is always 1x, while it is 3-4x in margin trading. This means futures is 20 to 100 times more capital efficient than spot or margin trading.

  • Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (4)Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (5)
  • Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (6)

    Leverage as a returns amplifier: Because in a leverage trade position size is greater than the capital deployed, impact of prices moves gets magnified. The return on capital deployed is leverage times the price return. This means that you can amplify your trading gains the effective use of leverage.

If BTC increased from $0 to $0 your return would be equal to:

+

1.25

%

Without leverage

+

12.5

%

With 10x leverage

+

25

%

With 20x leverage

+

31.25

%

With 25x leverage

Benefits of Trading BTC Through Futures

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (7)

Magnify returns through leverage

In-built leverage magnifies impact of BTC price moves on your return on capital.

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (8)

Trading both rising & falling markets

Long when bullish. Short when bearish. Trade all market conditions profitably.

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (9)

Trade more with less

Deploy the capital freed up by using leverage in other trading opportunities

Why Trade BTC Futures on Delta Exchange

1

Increase profitability

Low trading fees, tight spreads & deep order books of our BTC contracts increase profitability of your trades

2

Improve risk management

Set TP / SL with your order, Leverage advanced order types and instruments (Options, Interest Rate Swaps) to create hedging strategies

3

Identify better trades

Use professional charts & advanced analysis tools to quickly identify trading opportunities

Have a Question About Trading BTC Futures?

Futures have No Time Decay (Options are wasting assets meaning that their value reduces as expiry approaches given all else remains same), Liquidity (Future markets have deep and reliable liquidity as compared to options), Pricing easy to understand (If the spot and futures prices are out of alignment, arbitrage activity would occur and rectify the imbalance).

Why Delta Exchange?

Register Now

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (10)Competitive spreads & fees

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (11)Generous Rewards

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (12)24/7 Support

Bitcoin Futures & Perpetual Contracts Guide - Delta Exchange (2024)

FAQs

What is 100x leverage on Delta exchange? ›

Leverage: All derivative contracts traded on Delta Exchange have built in leverage. The maximum allowed leverage varies from contract to contract and can go up to 100x for certain contracts. This means that with say 1 BTC, you can take a position of up to 200 BTC.

Is the Delta exchange safe to use? ›

Is Delta Exchange legit? Delta Exchange is a legitimate cryptocurrency exchange that specializes in futures and derivatives trading. It was founded in 2018 and has since established itself as a trusted platform for crypto trading.

What is the difference between BTC futures and perpetual? ›

While perpetual futures are similar to standard futures contracts, they have one key difference: perpetual futures contracts have no expiration date. A perpetual futures contract's two counterparties (one long, one short) pay each other on an ongoing basis.

Can I buy Bitcoin in Delta exchange? ›

Delta Exchange India is a platform for trading derivatives that have cryptocurrencies/ cryptoassets as their underlying. We currently offer: Options: European call and put options on BTC and ETH. Perpetual contracts: Perpetual contracts futures on Bitcoin (BTC) and Ethereum (ETH) and several prominent altcoins.

How much is $100 with 20x leverage? ›

Opening a trade with $100 and 20x leverage will equate to a $2000 investment.

What is the best leverage for $100? ›

The best leverage for $100 forex account is 1:100.

Many professional traders also recommend this leverage ratio. If your leverage is 1:100, it means for every $1, your broker gives you $100. So if your trading balance is $100, you can trade $10,000 ($100*100).

Is Delta exchange allowed in the US? ›

Anyone located in or resident of the United States of America (including Puerto Rico, the U.S. Virgin Islands), St Vincent and the Grenadines and any other jurisdiction is prohibited from: acting as an affiliate of Delta; making any referrals as an affiliate to Delta; and.

How long can I hold perpetual futures? ›

No Expiry Date

Unlike regular futures, perpetual futures don't have an expiry date. This means you can hold a position for as long as you need without worrying about the contract expiring.

What is the point of perpetual futures? ›

Perpetual futures, also known as perpetual swaps or “perpetuals,” are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration date. Unlike traditional futures contracts, which have a set expiry date, perpetual futures can be held indefinitely.

Do Bitcoin futures expire? ›

Micro Bitcoin futures contracts expire the last Friday of the month. Prior to the contract expiration, a trader has three options: Offset the position. Hold to expiration.

Is Delta exchange legit? ›

The short answer is yes! Delta Exchange, the premier options trading platform, is your gateway to trade Bitcoin call and Put options. With daily expiries, low settlement fees, quick withdrawals, high liquidity, and tight spreads denominated in the USD, Delta Exchange provides an unmatched trading experience.

Who is the owner of Delta exchange? ›

Pankaj Balani, Saurabh Goyal, and Jitender Tokas are the founders of Delta Exchange.

How much is 100x leverage? ›

100x leverage in crypto means a trader can open a position worth 100 times their original investment, significantly amplifying potential gains or losses from small price movements.

What is 100x leverage in forex? ›

In the foreign exchange markets, leverage is commonly as high as 100:1. This means that for every $1,000 in your account, you can trade up to $100,000 in value. Many traders believe the reason that forex market makers offer such high leverage is that leverage is a function of risk.

Is 100x leverage worth it? ›

Trading on a cross margin can be a great way to maximize profits in the markets. With the amount of leverage reaching up to 100x, you can rack up some nice gains without actually risking a lot of capital. However, it is important to be aware of the potential risks involved with trading on 100x margin.

What does 100x mean in trading? ›

Before we dive deeper into the strategies, let's define what precisely a 100x return means in the crypto world. A 100x return refers to multiplying your investment by 100, resulting in a whopping 10,000% return. For example, turning $10,000 into $1 million or $1,000 into $100,000 would be considered a 100x return.

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