Trade the new Stellar contracts at BitMEX and you could win up to $25k

BitMEX is thrilled to announce a new $100k lottery giveaway for Stellar (XLMF18) contracts! To win one of the 15 lottery prizes, simply trade the new Stellar contract on BitMEX to collect tickets. Even with just one ticket, you have the chance to win the grand prize of $25,000.

Start: Wednesday, 17 January 2018 00:00 UTC
End: Friday, 26 January 2018 12:00 UTC

Prizes:

1 Grand Prize of 25,000 USD
1 Second Prize of 10,000 USD
13 Third Prizes of 5,000 USD

Rules:

  • Any trader who trades 5,000 Stellar contracts earns a lottery ticket. Each trader can earn up to 10 lottery tickets.
  • Bonus tickets: any trader who trades a total volume of one million or more Stellar contracts receives an extra 10 lottery tickets, for a total of 20 lottery tickets.
  • Each lottery ticket has an equal chance of winning one of the 15 prizes.
  • A trader cannot win more than one prize.

It’s simple to participate:

Cheers,
The BitMEX Team

Terms & Conditions:

  1.     BitMEX reserves the right to cancel or amend the giveaway or giveaway rules at our sole discretion.
  2.     Users who engage in market manipulation will be excluded from the contest. This determination will be made at the sole discretion of BitMEX.
  3.     Winner will be notified via email on 31 January 2018.
  4.     All awards are paid out in Bitcoin at the prevailing price of the .BXBT index at 26 January 2018 12:00PM UTC.

BitMEX $100K Giveaway leaderboard 12 January 2018

Check your user name here:
https://www.bitmex.com/app/leaderboard

Or follow these steps:

  1. Go to the BitMEX platform at https://www.bitmex.com/app/trade/XBTUSD.
  2. Click on Contracts in the top menu bar.
  3. Click on Leaderboard in the left navigation bar.

Remember, five random ADA contract traders will be awarded $5,000 each.

Good luck to all participants!

Cheers,
The BitMEX Team

BitMEX $100K Giveaway leaderboard 11 January 2018

Check your user name here:
https://www.bitmex.com/app/leaderboard

Or follow these steps:

  1. Go to the BitMEX platform at https://www.bitmex.com/app/trade/XBTUSD.
  2. Click on Contracts in the top menu bar.
  3. Click on Leaderboard in the left navigation bar.

Remember, five random ADA contract traders will be awarded $5,000 each.

Good luck to all participants!

Cheers,
The BitMEX Team

BitMEX $100K Giveaway leaderboard 10 January 2018

Check your user name here:
https://www.bitmex.com/app/leaderboard

Or follow these steps:

  1. Go to the BitMEX platform at https://www.bitmex.com/app/trade/XBTUSD.
  2. Click on Contracts in the top menu bar.
  3. Click on Leaderboard in the left navigation bar.

Remember, five random ADA contract traders will be awarded $5,000 each.

Good luck to all participants!

Cheers,
The BitMEX Team

BitMEX wishes you a happy new year with $100K Giveaway!

Happy new year! To celebrate, BitMEX is giving away $100,000 in prizes. Simply trade the new Cardano (ADAF18) contract on BitMEX and you could win a grand prize of up to $50,000. Even with just one trade, you could win one of five randomly selected $5,000 prizes!

Start: Monday, 8 January 2018 08:00 UTC
End: Monday, 15 January 2018 23:59 UTC

Prize Details
Volume Winner $50k The trader who trades the largest amount of Cardano (ADAF18) contracts will receive $50,000 US.
Profit Winner $25k The trader who has the largest profit (in XBT) from trading the Cardano (ADAF18) contract will receive $25,000 US.
Lucky $5k (five winners) $5k Any trader who trades at least one Cardano (ADAF18) contract enters a random draw to win one of five $5,000 US prizes.

It’s simple to participate:

Cheers,

The BitMEX Team


Terms & Conditions:

  1.     BitMEX reserves the right to cancel or amend the giveaway or giveaway rules at our sole discretion.
  2.     Users who engage in market manipulation will be excluded from the contest. This determination will be made at the sole discretion of BitMEX.
  3.     Profit is defined as realized profit (in XBT terms) of all trades where the trade was opened and closed during the contest period window.
  4.     No user can win more than one prize. 
  5.     Winner will be notified via email on 17 January 2018.
  6.     All awards are paid out in Bitcoin at the prevailing price of the .BXBT index at 15 January 2018 23:59 UTC.

Bitcoin Cash sale summary

BitMEX completed the sale of all Bitcoin Cash (BCH) held on behalf of our users. The Bitcoin Cash sale details are:

  • The amount of Bitcoin Cash a user is entitled to is determined by their margin balance at 1 August 2017 13:17 UTC, a few seconds after block 478,588.
  • Bitcoin Cash to Bitcoin (XBT) ratio is 1 BCH to 0.1707 XBT.
  • Users’ BitMEX Bitcoin wallets will be credited with the amount of Bitcoin they are entitled to.

The Insurance Fund was credited with 120.5321631 XBT due to its holdings of Bitcoin Cash.

CBOE Bitcoin shorts got Ashdraked

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There once was a trader who went by the handle Lord Ashdrake. He was a Romanian programmer, and was a prolific force during the nuclear Bitcoin winter in 2014 and 2015. His skill was shorting Bitcoin, and that strategy worked like a charm until it didn’t.

When Bitcoin finally broke and held $300, Ashdrake performed his usual action of shorting Bitcoin. Unfortunately, this time the price continued through $300 to $500, and almost touched $600 in under two months.

Ashdrake completely blew up his account to the point where he could no longer trade Bitcoin. His folly was being unable to shift into a bull-market mindset. The trader community coined the phrase “to be Ashdraked”. It meant to completely blow up your trading account by shorting Bitcoin.

Leading up to Monday’s CBOE Bitcoin futures launch, the financial media constantly droned on that institutional investors would line up to short Bitcoin into the ground. However, within 12 hours of the launch, the CBOE Jan Bitcoin future hit the circuit breaker three times, and was up over 20%.

Interactive Brokers was so afraid of being Ashdraked that they did not allow clients to go net short on the futures contract. They have since reversed that stance, but shorts must post a whopping 400% margin.

Contango, anyone?

As I write this, the CBOE future continues to trade at a premium to spot. There is a very simple reason why this future should usually trade at a premium.

Consider the plight of the average traditional active asset manager. Global central banks crushed volatility in all asset classes in their relentless drive to create inflation. Bonds, equities, ETFs, and asset-backed securities are all prominently featured on central-bank balance sheets.

Retail investors noticed. They realised en masse that it is better to own a passive market-tracking ETF than to entrust an expensive human to generate alpha. Even the so-called smart money became glorified beta chasers.

However, Bitcoin and other digital currencies continued to be volatile, to have a negative correlation to risky assets, and to go up in value. If I am an average active fund manager, I am surely underperforming a passive equity investment in the S&P 500, for example.

If I do nothing, I will certainly lose assets to passive ETFs with lower fees and better performance. However, I could swing the bat and import a call option with a negative correlation to my portfolio as a whole. If it goes to zero, who cares? I was going to underperform the index anyway. If it rises 50% to 100% in a month, I have added a few crucial basis points to my performance. That could be the difference between receiving a doughnut as a bonus or getting PAID.

That call option is going long on Bitcoin futures. I don’t have to believe in Bitcoin, only in its price, volatility, correlation, and liquidity. I don’t have to hold Bitcoin. I only need to use the USD already deposited with the CBOE or CME to trade the futures contract.

The specs will be net long Bitcoin futures contracts. The market makers who are delta neutral will sell futures and purchase Bitcoin. As I have said previously, market makers must receive a very high basis to compensate them for the USD margin they must post.

Unfortunately for these market makers, unrealised USD gains from being long Bitcoin cannot be used to offset the unrealised USD losses on their short futures position. Therefore the basis must be attractive enough to compensate for the large balance sheet usage.

The basis on the CBOE opened close to +10%, and now trades in the +3% to +5% range.

CME game time

All the traders I speak to unanimously prefer the CME’s contract structure to the CBOE’s. The main point of contention is that the CBOE uses only Gemini as a reference exchange. The liquidity of Gemini pales in comparison to the sum of Bitstamp, GDAX, itBit, and Kraken.

The CBOE launch on Monday whetted the appetite of speculators globally. Never before in my markets career have I seen such attention paid to a new futures contract.

The game has just begun, and the CME is going to rain threes like Steve Kerr all over the CBOE.

Out of the gate, I expect the CME near-month contract to hit the 7%, then 13% circuit breakers. By mid-morning Asia time, I expect the contract limit to be up at 20%.

Tame Bitcoin… yeah, right

Bitcoin is a wild bucking bronco, and the CBOE and CME lack the skills to ride for eight seconds.

We crypto traders should thank our lucky stars that these venerable exchanges decided to list futures contracts this year. The volatility and attention they have brought exceed anything I could have imagined.

Central banks saved commercial banks from certain death via aggressive money printing. However nine years after the GFC, banks and investors are desperate for volatility. Bitcoin, altcoins, ICOs, and all manner of digital tokens provide the long-lost market gyrations that made generations of traders wealthy.

As Jesse Livermore said:

I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.

Moral of the story: don’t get Ashdraked. BTFD, ya heard?

BitMEX product list update

Quarterly Bitcoin/USD futures contracts

The following quarterly contracts will be listed on or before 15 December 2017 12:00 UTC:

  • BitMEX Bitcoin/USD 30 March 2018 futures contract, XBTH18.
  • BitMEX Bitcoin/USD 29 June 2018 futures contract, XBTM18, will be added in the near future.

Quarterly Bitcoin/JPY futures contracts

No new Bitcoin/JPY quarterly contract will be listed after the BitMEX Bitcoin/JPY 29 December 2017 futures contract, XBJZ17, expires. We will add a Bitcoin/JPY perpetual swap in the near future.

Quarterly altcoin futures contracts

The following quarterly contracts will be listed on or before 15 December 2017 12:00 UTC:

  • BitMEX Ether/Bitcoin 30 March 2018 futures contract, ETHH18.
  • BitMEX Dash/Bitcoin 30 March 2018 futures contract, DASHH18.
  • BitMEX Litecoin/Bitcoin 30 March 2018 futures contract, LTCH18.
  • BitMEX Monero/Bitcoin 30 March 2018 futures contract, XMRH18.
  • BitMEX Ripple/Bitcoin 30 March 2018 futures contract, XRPH18.
  • BitMEX Zcash/Bitcoin 30 March 2018 futures contract, ZECH18.

Please note that the fee structure for all altcoin futures contracts will change to maker/taker, -0.05%/+0.25%.

I’ll take that

Building wealth is the easy part; securing and storing it for use by subsequent generations is difficult.

Half a millennium ago, a wealthy family needed a private army to secure its land and wealth. If you couldn’t project violence in the defence of your assets, they would be forcibly taken by an opportunistic person.

As civilisations evolved and we entered the age of the nation-state, society agreed that a centralised government should have a legal license to kill in order to secure the interests of property owners. Regardless of the economic “ism” that a government claims to practise, the goal is the same: protect a small group of asset holders against the hoard of commoners who might like to improve their lot at the expense of the elites.

Today, the richest humans don’t command standing armies, and their holdings include financial and real assets. Stock and bond ownership relies on a central depository to affirm that you indeed are the owner. Government deed offices proclaim that a piece of land or real estate is yours.

You are rich as long as the government allows you to be. The trappings of wealth can be taken at a whim. Should your actions upset a powerful state actor, your bank accounts will be frozen and your assets confiscated through the courts.

The recent Saudi corruption drive is case and point. Mohammad bin Salman (MBS), the crown prince of Saudi Arabia, is on a mission to wean the country off oil. This is more easily said than done, especially since the general population only complies because of generous government handouts. To beef up the government coffers, MBS did what all governments do: go after certain rich people.

MBS certainly wouldn’t subject himself to austerity. Last year, he purchased a yacht worth over $500 million while slashing government spending.

Overnight, some of the country’s richest members were herded to the Ritz Carlton, and placed under arrest owing to “corruption” charges. The most famous billionaire ensnared was Prince Alwaleed bin Talal, a world-famous investor with large stakes in some of the biggest global tech darlings.

After a few days cooped up in the Ritz, MBS presented his captives with a choice: liquidate your assets and give the Saudi government up to 70% or stay locked up. Even if a large percentage of a captive’s wealth were held offshore, information sharing between governments would likely allow MBS to know where the biggest nuggets are held. If he doesn’t think you have been forthcoming enough with the true state of your offshore wealth… — well, the Yemeni front line is awful fun these days.

Bitcoin presents a different way to secure wealth. Instead of trusting a government staffed with capricious humans, holders of Bitcoin trust cryptography and a decentralised network of profit-motivated miners.

Bitcoin is less than a decade old, and is still very much an experiment. But if you possess a sum of wealth, it is prudent to diversify the networks used to secure it. Many people believe that if they follow the “law”, they will be all right. However, laws change to serve the growth and power of the government writing them.

The government failures in Venezuela and Zimbabwe illustrate that in times of crisis Bitcoin can be used to grease the wheels of commerce. Unfortunately for most, it takes a time of crisis to elucidate the fatal flaws of a particular economic system. Only then will people take concrete actions, which only moments ago were diametrically opposed to their belief system. At that point, it’s too late.

BitMEX vs. CME futures guide

Bitcoin is at a watershed moment. The Chicago Mercantile Exchange (CME), the largest exchange globally by notional traded, deemed Bitcoin worthy of a futures contract. The contract will allow investors to speculate on the Bitcoin/USD price without owning Bitcoin. Prior to this contract, derivatives traders were required to own Bitcoin in order to post margin on futures trading platforms such as BitMEX.

Due to the different client bases that BitMEX (retail) and the CME (professional investors) serve, the price discrepancies between two futures contracts with the same underlying will present enormous opportunities to generate arbitrage profits. This guide will walk traders through how to execute such trades.

Contract specs

Each CME contract is worth 5 Bitcoin (XBT), and is quoted in USD. Margin and profit and loss (PNL) are denominated in USD. This is what I refer to as a “linear contract structure”.

CME XBT value = 5 XBT * contracts
CME USD value = 5 XBT * price * contracts

Each BitMEX contract is worth 1 USD of Bitcoin, and is quoted in USD. Margin and PNL are denominated in XBT. This is what I refer to as an “inverse contract structure”.

BitMEX XBT value = 1/Price * 1 USD * contracts
BitMEX USD value = 1 USD * contracts

The above chart shows the XBT value of each contract. The CME contract has a fixed value in Bitcoin no matter the spot price. The BitMEX contract’s Bitcoin value follows a 1/x function. Technically speaking, the BitMEX multiplier is negative, even though in the graph uses a positive multiplier for a better visualisation.

Assume you are long 10,000 contracts at a price of $1,000.

XBT value = 1/$1,000 * -1 USD * 10,000 = -10 XBT

Now the price falls to $500.

XBT value = 1/$500 * -1 USD * 10,000 = -20 XBT

At a lower price, the XBT value is a larger negative number.

XBT PNL = -20 XBT - (-10 XBT) = -10 XBT

This means that the value in Bitcoin declines faster as the price falls, and increases slower as the price rises. That is negative gamma, or negative convexity.

The above chart shows the USD value of each contract. The CME contract’s USD value changes in a linear fashion with respect to the spot price (CME contract specs). The BitMEX contract’s USD value is fixed at $1 per contract.

Contract size

The CME contract is much larger in notional terms than BitMEX’s. If the price of Bitcoin is $8,000, one CME contract is worth $40,000. To achieve a similar notional on BitMEX requires 40,000 contracts.

When I touch on spread trades later, the much larger CME notional means that only traders with large amounts of capital can put on these trades. This limiting factor, along with the lower leverage offered by the CME, means that most retail traders will be unable to trade the CME product.

Settlement

The first major difference between the two contracts is the underlying index. The CME settles on the CME CF Bitcoin Reference Rate. This index includes prices from Bitstamp, GDAX, itBit, and Kraken. BitMEX settles on the BitMEX Index that includes Bitstamp and GDAX.

Traders who hold either contract to expiry will need to familiarise themselves with each index, and at a minimum be able to trade on all four exchanges.

Both BitMEX and the CME expire on the last Friday of the contract month. However, BitMEX expires at 12:00 UTC, while the CME expires at 16:00 London Time which is either 16:00 UTC or 15:00 UTC depending on daylight saving time. Given that the expiry time differs by only three to four hours, there is little benefit to adjust the time value when computing relative basis.

Margin

Bitcoin is a call option. The more volatile it is, the more valuable the option. Due to an infinite upside, and a capped downside at zero, the trading pressure on the margin comes from longs. That means that market makers who are price neutral will usually be short derivatives. Their propensity to quote an offer depends on how easily it is to purchase spot Bitcoin and how their short derivative is margined.

As I previously mentioned, the BitMEX contract is margined in XBT. That means that shorts can purchase spot Bitcoin and use this as collateral against their BitMEX short. If you buy $1,000 of Bitcoin, deposit the full XBT notional with BitMEX, then short 1,000 BitMEX contracts, you cannot be liquidated if the price rises.

BitMEX shorts, due to the inverse contract structure, are long gamma in XBT terms. That means that as the price rises, their unrealised losses increase less quickly. Therefore, BitMEX shorts can use more leverage than they otherwise would if the contract used a linear contract structure.

Contrast that with the CME, which margins the contract in USD. A market maker who is short cannot use their spot Bitcoin hedge as margin at the CME. As the price rises, their Bitcoin is worth more; however, those unrealised USD gains cannot be deposited as margin. The CME will demand more USD collateral as the unrealised losses mount.

This makes shorting the CME contract very capital intensive. A priori, I expect the CME contract to trade more expensive than BitMEX. CME shorts need to be compensated via a higher basis for their implicit short volatility position.

The CME intends to list a futures curve out to one year. The back end of the curve, due to a larger time value, will be illiquid when compared to the front months, and will trade at a very high basis.

I will now present two spread trades. Assume that you are a USD-based investor.

Spread trade: Long BitMEX vs. short CME

Assume the following:

leverage: 5x / initial margin of 20%

Spot = $8,000
BitMEX = $8,000
Contracts = long 200,000
CME = $10,000
Contracts = short 6
Spread = $2,000

First, compute the XBT and USD exposures.

On BitMEX:

XBT exposure: 200,000 long contracts / $8,000 = +25 XBT
USD exposure: 200,000 long contracts * 1 USD = -$200,000
margin requirement: 20% * 25 XBT = 5 XBT
collateral currency exposure vs. USD: +5 XBT / -$40,000 (valued at the spot price)

On CME:

XBT exposure: 6 short contracts * 5 XBT = -30 XBT
USD exposure: 6 short contracts * 5 XBT * $10,000 = +$300,000
margin requirement: 20% * $300,000 = $60,000
collateral currency exposure vs. USD = 0

Because you are a USD-based investor, you must ensure that you do not have XBT/USD risk at any time. Due to the XBT BitMEX margin requirement, you must short one additional CME contract to hedge the 5 XBT margin required on BitMEX.

Margin XBT/USD price risk:

BitMEX: +5 XBT / -$40,000
CME: -5 XBT / +$50,000 (short 1 contract)
Net: 0 XBT / +$10,000

Due to the CME’s higher basis, we earn carry on the BitMEX XBT collateral.

Spread XBT/USD price risk:

BitMEX: +25 XBT / -$200,000 (long 200,000 contracts)
CME: -25 XBT / +$250,000 (short 5 contracts)
Net: 0 XBT / +$50,000

As predicted, we earn $50,000 PNL from this spread trade. The table below stresses the portfolio on a large up and down move.

Price BMEX XBT PNL BMEX USD PNL CME USD PNL Total
$4,000 -25.00 XBT -$100,000 $150,000 $50,000
$8,000 0.00 XBT $0 $50,000 $50,000
$16,000 12.50 XBT $200,000 -$150,000 $50,000

The trade continues to return $50,000 regardless of the price movement. However, this is a leveraged trade so we must post additional margin on either BitMEX or the CME, depending on the price move.

The table below summarises what actions must be taken to ensure we meet margin requirements.

Margin Action Currency Needed
Price Falls Buy then deposit XBT on BMEX, sell CME contracts XBT & USD
Price Rises Deposit USD to CME USD

Because we are short gamma on our long BitMEX position, we must post XBT and sell CME contracts to hedge the XBT collateral. Both of these derivatives require additional margin. On the upside, we only need to post additional USD with the CME. Depending on your cost of capital, a prolonged down move without any recovery could become very expensive.

Another issue is the sizing of this trade. Each CME contract is worth 5 XBT. If you wish to remain price neutral on your XBT collateral, a 5 XBT loss needs to be a small % with respect to your trade notional. Otherwise you will always be over and under hedged. The below table illustrates this point.

entry price: $8,000
multiplier: -1 USD (for inverse contracts the multiplier is actually negative)

Contracts XBT Value Down % Move Up % Move
50,000 -6.25 XBT $4,444.44 -44.44% $40,000.00 400.00%
250,000 -31.25 XBT $6,896.55 -13.79% $9,523.81 19.05%
500,000 -62.50 XBT $7,407.41 -7.41% $8,695.65 8.70%
1,000,000 -125.00 XBT $7,692.31 -3.85% $8,333.33 4.17%
2,500,000 -312.50 XBT $7,874.02 -1.57% $8,130.08 1.63%
5,000,000 -625.00 XBT $7,936.51 -0.79% $8,064.52 0.81%

The “% Move” is a measure of how far the price needs to move up or down to generate a contract value change of 5 XBT. As you can see, go big or go home.

Spread trade: Short BitMEX vs. long CME

Assume the following:

leverage: 5x / initial margin of 20%

Spot = $8,000
BitMEX = $10,000
Contracts = Short 250,000
CME = $8,000
Contracts = Long 5
Spread = $2,000

First, compute the XBT and USD exposures.

On BitMEX:

XBT exposure: 250,000 short contracts / $10,000 = -25 XBT
USD exposure: 250,000 short contracts * 1 USD = +$250,000
margin requirement: 20% * 25 XBT = 5 XBT
collateral currency exposure vs. USD: +5 XBT / -$40,000

In order to hedge the 5 XBT of margin required, sell an additional 50,000 BitMEX contracts.

XBT exposure: 50,000 short contracts / $10,000 = -5 XBT
USD exposure: 50,000 short contracts * 1 USD = +$50,000
net: 0 XBT / $10,000

On CME:

XBT exposure: 5 long contracts * 5 XBT = +25 XBT
USD exposure: 5 long contracts * 5 XBT * $8,000 = -$200,000
margin requirement: 20% * $200,000 = $40,000
collateral currency exposure vs. USD = 0

Spread XBT/USD price risk:

BitMEX: -25 XBT / +$250,000 (short 250,000 contracts)
CME: +25 XBT / -$200,000 (long 5 contracts)
net: 0 XBT / +$50,000

As predicted, we earn $50,000 PNL from this spread trade. The below table stresses the portfolio on a large up and down move.

Price BMEX XBT PNL BMEX USD PNL CME USD PNL Total
$4,000 37.50 XBT $150,000 -$100,000 $50,000
$8,000 6.25 XBT $50,000 $0 $50,000
$16,000 -9.38 XBT -$150,000 $200,000 $50,000

The trade continues to return $50,000 regardless of the price movement. However, this is a leveraged trade so we must post additional margin on either BitMEX or the CME depending on the price move.

The table below summarises what actions must be taken to ensure we meet margin requirements.

Margin Action Currency Needed
Price Falls Deposit USD to CME USD
Price Rises Buy then deposit XBT on BMEX, sell BMEX contracts XBT

Because you have positive gamma on the short BitMEX position, you will not face a doubling of margin requirements when the price falls. This spread trade is more capital efficient; however, I doubt whether BitMEX will frequently trade more expensive than the CME for reasons described above.

Gap risk

The CME does not trade over the weekend. Longs or shorts depending on the price action over the weekend, could be insta-rekt when the exchange reopens Sunday night US time.

Interactive Brokers, one of the CME’s clearing members, expressed severe reservations about this product due to the high volatility. They are scared shitless about how to deal with underwater shorts. It is not impossible for Bitcoin to gap up 100% in a matter of hours on positive news. Imagine what will happen when an ETF finally is approved.

BitMEX deals with gap risk via auto-deleveraging. The CME at the present moment cannot employ a socialised loss feature. Instead, clearing members must pony up the cash. That is why they are being such scaredy cats.

Depending on your broker, margin requirements for short positions could be extremely unforgiving. This will push CME basis up even further, and make putting on the spread trade, described above, even more expensive.

Are you yellow?

Arbitraging BitMEX versus the CME requires a high level of trading sophistication and attention to detail. The different margin currencies and policies present many opportunities to transform what is a sure profit into a massive loss.

However, owing to their difficulty, these spread trades will be juicy. For students of markets, this is an arbitrage opportunity of a lifetime. Those who put in the time to perfect these strategies will profit handsomely.

Bitcoin Cash Futures Now Live

BitMEX BCHX17 Futures Now Live

We are pleased to announce that the BitMEX 24 November 2017 Bitcoin Cash / Bitcoin futures contract is now live.​

  • Symbol: BCHX17
  • Expiry Date: 24 November 2017 12:00 UTC
  • Contract Value: 1 BCH
  • Underlying: Poloniex Bitcoin Cash / Bitcoin exchange rate
  • Leverage: 20x

​BitMEX Bitcoin Cash Holdings

On or before 31 December 2017:​

  • The amount of Bitcoin Cash a user is entitled to is determined by their Margin Balance at 1 August 2017 13:17 UTC, a few seconds after block 478,588.
  • Users will not receive Bitcoin Cash, rather BitMEX will sell all users’ Bitcoin Cash, and credit their wallet with the Bitcoin proceeds.

BitMEX Future Hard Fork Policy

BitMEX does not agree with contentious hard forks, and does not accept the manner in which Bitcoin Cash was forked, or the lack of preparation or notice before the fork; we consider this a dangerous action that imposes unacceptable costs on end-users and businesses. Please read our Policy on Bitcoin Hard Forks for acceptable hard-fork criteria.

However, months after the fork, it is clear this coin still has value and popular demand, so we have decided to credit Bitcoin at the prevailing Bitcoin Cash price. Do not expect future coins to be credited in this way. BitMEX reserves the right to credit forks or not – in the presence of doubt, always withdraw first.