Estonia-based Bibox exchange is to launch bitcoin cash (BCH) and litecoin (LTC) perpetual trading contracts on April 12, with leverage of up to 50x. Priced in tether (USDT) – the US dollar-pegged stablecoin – the cryptocurrency derivatives are targeted at both institutional and retail investors.
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Perpetuals With No Funding Rate
Unlike futures, perpetuals do not expire, meaning they are often viewed as a better hedge against price drops. However, both contracts represent an agreement to purchase an asset, in this case BCH, at a pre-determined price.
Bihui Lin, spokeswoman for Bibox, told news.Bitcoin.com that the contracts do not have a funding rate, meaning less cost for those involved in the trade. Normally, for contracts trading, investors have to pay the funding rate every eight hours depending on market conditions – sometimes it’s received or paid by users on long positions to those who are short and…