Introducing Globe’s Perpetuals
Trading Globe’s perpetuals is like trading assets such as cryptocurrency pairs (e.g. XBT/USD).
The difference with Globe:
- Up to 100X leverage
- The ability to short
- The fastest/fairest exchange, ever.
What are perpetuals?
Perpetuals, or perpetual futures contracts, are a novel futures contract.
In a futures contract, someone who has an asset (e.g. gold) promises to provide you with this asset at a future date (e.g. in thirty days) for a price you agree today. If in thirty days the price is higher than what you paid for the futures contract, you can sell the gold and make a profit. Commodity traders use futures contracts to speculate on future prices and to hedge against price shifts.
Perpetuals start off the same. There is an expiry date. But unlike the futures contract, perpetuals do not end at that expiry date. Instead, there’s a funding event that happens. During this funding event, the price of the perpetual is reset to the price of the actual underlying assets, and traders will receive a profit, or have their position reduced in size, in order to maintain their position in the new futures contract. Technically, you’re holding a futures contract at any one time that automatically converts into a new futures contract at the next funding event. And this goes on and on — hence the name ‘perpetual’, and why in practice, perpetuals closely track the underlying asset.
Globe Perpetuals
- XBT/USD
- ETH/USD
- UNISWAP
- XBTVIX
How to trade perpetuals
Register here in 30 seconds by filling out your details, and confirming by email:
To trade perpetuals, head over to our exchange page at https://globedx.com/trade.
Click on ”XBT/USD” on the top left under perpetuals to open up the contract selection menu.
Load up your selected perpetual, enter the amount of XBT to open the position with, and open a long or short position.
The funding mechanism
To ensure our perpetuals correlate with the price of the underlying asset they track (e.g. Bitcoin), we re-align the value of the perpetual every 8 hours. For example, if the perpetual price for Bitcoin is higher than the price of Bitcoin, then traders who are long on Globe’s bitcoin perpetual (believe it will increase in value) will roughly pay the traders who are short (who believe Bitcoin will go down) the difference. If it is negative, the traders who are short will pay those who are long. Precise details of this calculation will be covered in a coming article, stay tuned!
About Globe
Globe is a crypto derivatives exchange where institutions and consumers transact digital currencies like Bitcoin via perpetual futures contracts.
The Billion Satoshi Puzzle: https://medium.com/globe-official/globe-exchange-the-billion-satoshi-puzzle-44cbb8487820
How to register/start trading on Globe: https://globedx.com/en/blog/register-start-trading-with-globe/
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