BitMEX To Launch Litecoin (LTCUSD) Quanto Perpetual Swaps Next Week

  • BitMEX announces the launch of its Litecoin (LTC/USD) Quanto perpetual swap contract.
  • The exchange provides up to 33x leverage on the new derivatives.

An announcement on the BitMEX blog on Tuesday confirmed the upcoming launch of Litecoin (LTC/USD) Quanto perpetual swap contract on July 30th, 2020. The new asset addition will strengthen BitMEX’s claim as the top exchange in its product expansion plans and offering a diversified market for its users.

LTCUSD Quanto becomes the latest product to launch on the exchange following the successful release of Ethereum (ETHUSD) Quanto and perpetual swap contracts of BCHUSD and XRPUSD Quanto – all launched earlier this year.

BitMEX will offer a starting leverage of up to 33x, considerably lower than the 50x offered on ETHUSD and XRPUSD pairs. The BTC multiplier is set at 0.000002 BTC, or 200 satoshis and the maker and taker fee set at -0.025% and 0.075%, respectively.

“The contract will be visible on the platform from 29 July 2020 at 04:00 UTC as Unlisted, 24 hours before the start of trading.” – BitMEX blog.

Read more>> Derivative exchange BitMEX to launch Bitcoin-settled ETH/USD Quanto futures contract

Quanto is traded similar to perpetual swap contracts giving investors and traders exposure to a foreign asset without having to carry the corresponding foreign exchange rate risk. These derivative products, however, differ from swaps in that they have a fixed Bitcoin (XBT) multiplier even when price changes.

The LTCUSD Quanto will have this XBT multiplier instead of the conventional dollar-denominated price allowing traders to be long and short LTCUSD without touching Litecoin or the dollar. This means, traders, post margin in XBT, and earns or loses XBT as the rate of LTCUSD changes.

This “Quanto risk premium” is one of the causes that set the spot and swap contracts to trade at different prices.