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.

Also read: ‘This is Not an ICO, Just Barter’ – How Issuers Attempt to Evade Scrutiny

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…

Click to continue reading on its source location…

Source: https://news.bitcoin.com/bibox-exchange-to-launch-leveraged-bch-perpetual-contracts/