Contract exchange development, contract trading pl
Contract transaction refers to an agreement between the buyer and the seller to receive a certain amount of certain assets at a specified price at a certain time in the future. The trading object of contract transaction is a standardized contract uniformly formulated by the exchange. The exchange stipulates its commodity type, trading time, quantity and other standardized information. The contract represents the rights and obligations of both parties.
What are the types of contract exchanges?
1. Term contract: a term contract is a contract with a delivery period. According to the purchase currency, it can be divided into usdt term contract and base currency term contract.
2. Perpetual contract: a perpetual contract is a contract without delivery term. According to the purchase currency, it can be divided into usdt perpetual contract (also known as forward perpetual contract) and base currency perpetual contract (also known as reverse perpetual contract).
3. Delivery contract: delivery contract refers to the contract that both parties of the futures contract agree to deliver and purchase at the futures price at the specified time, i.e. the delivery date. This contract is a digital currency contract, which uses usdt as the valuation unit and settlement unit, and is delivered regularly. The contract price is completely formed by the market mechanism, and the profit and loss are calculated by the latest trading price rather than the index.
4. Futures contract: futures contract is the trading object or subject matter of futures trading. They are uniformly formulated by futures exchanges and stipulate standardized contracts for the delivery of commodities of a certain quantity and quality at a specific time and place.
What are the roles of contract exchanges?
1. The role of hedging and risk hedging. At present, contracts mainly play two roles for users, that is, small, broad and risk hedging. It is easy to understand that gains are amplified through leverage, and most risk hedgers are mainly miners. In addition, for contracts, when the price rises or falls unilaterally, there will be an opposite force to push the price back to a relatively ideal state, control the spot market price and make the short-term irrational price return to rationality.
2. Increasing asset liquidity is conducive to the entry of more institutional investors. Since many institutional investors cannot directly invest in bitcoin, derivatives launched by major exchanges give these investors access to the bitcoin market.
3. Expand trading methods, compete for bitcoin pricing power, contract trading, diversified trading strategies of virtual assets, you can short or do more. At the same time, the spot market and contract market will guide each other and increase the scale of the whole digital money market.