Following the launch of our latest BTC dated future contract, in this week's Eqonomics we provide a quick overview of our range.
A dated futures contract is an agreement to buy or sell an asset at a specific price in the future.
EQONEX BTC futures are settled physically. Therefore, at expiry:
BTC dated futures on EQONEX now go out to around one year in expiry in addition to the perpetual future.
Current expiries of the four dated futures:
More contracts equal more opportunity.
Considering that each contract can be held long or short, there are 242 potential combinations to choose from!
For example, if you were to take a position in all 5 of the futures, there are 32 potential combinations:
While going long or short for all five contracts simultaneously probably doesn’t make much sense, other combinations allow traders to access specific opportunities across the curve. This level of flexibility means traders can gain exposure to price direction and the curve shape concurrently.
Perpetual futures’ basis payments also provide a different angle for traders to find new opportunities.
Indicative futures prices, as of 29 April 2022:
Name | Price | Future - Perps | Yield | Annualized |
BTC/USDC [F] | $39,585 | - | - | - |
BTC/USDC [220624] | $39,683 | $98 | 0.2% | 1.6% |
BTC/USDC [220930] | $40,293 | $708 | 1.8% | 4.2% |
BTC/USDC [221230] | $40,653 | $1,068 | 2.7% | 4.0% |
BTC/USDC [230331] | $41,886 | $2,301 | 5.8% | 6.3% |
From the annualized yields, we can see an opportunity around the December contract versus the adjacent September and March contracts.
To better understand how you could trade this term structure, you can refer to Trading Butterfly Spreads.
Want to dive deeper into futures trading opportunities and the curve? Have a look at these previous articles:
Additionally, try it for yourself on EQONEX!
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