In the last two years, the future has become very popular among cryptocurrency traders, and this is even clearer as the full open interest in derivatives has more than doubled in three months.
Another evidence of its popularity was the fact that the turnover of futures contracts exceeded gold. There is an established market of 107 billion dollars a day.
However, each exchange has its own order book, index account, leverage limits and cross-border and isolation rules. While these changes may seem superficial at first, they can make a big difference depending on the needs of the provider.
Full open interest in futures contract (blue) and daily volume (black). Source: Bybet
As described above, open interest rates for the whole future have risen from 19 billion to 41 billion in three months. Meanwhile, the daily volume of trade exceeded 120 billion dollars, which is 107 billion dollars more than gold.
Finance Futures holds the largest share of this market with a number of competitors, including relevant volumes and open interest, including FTX, Bybit and OKEx. Some of the differences between the exchanges are obvious, ie. FTX fees for fixed-time contracts (reverse exchange) per hour higher than the average 8-hour window.
Notice how CME ranks third in bitcoin futures (BTC) despite the introduction of exclusive monthly contracts. Traditional CME derivatives markets have the advantage of requiring a deposit of 60%, but brokers can provide incentives to specific clients.
Fixed currency compared to premium premium contracts
As for the exchange of cryptocurrencies, most of them will allow you to stimulate up to 100 times. Tether (USDT) orders are usually expressed in BTC terms. Meanwhile, the contracts specify the permanent books in reverse order (with a surcharge), which can be $ 1 or $ 100 depending on the transaction.
The image above shows the amount of money indicated in BTC required to enter a Bibit USDT futures order, which is also executed in Finance. On the other hand, OKEx and FTX give users a simpler option that allows the customer to enter USDT.
In addition to USDT based contracts, OKEx also offers USDK pairs. Similarly, Binance Futures offers a book with Binance USD (BUSD). Therefore, there are other options for those who do not want to use Tether as a guarantor.
Variable financial rates
Some exchanges allow clients to use a very high incentive, and since liquidation engines and insurance funds are in these positions, this does not pose a general risk, this will put pressure on the interest rate. Financing Therefore, long positions are accrued in these transactions.
The table above shows that on average Bibit and Finance have the highest funding ratio and OKEx always offers the lowest price. Traders need to understand that there are no rules to apply to this, and that prices can vary from asset to asset, temporarily increasing demand.
Even a difference of 0.05% equals 1% of the extra costs per week, which means that it is essential to always compare the funding rate, especially in bullish markets when interest rates are high. Coming soon.