How To Trade Factom

The hottest new altcoin on the block is Factom (FCT). Factoid is the token used to power the Factom protocol. Although technically incorrect, BitMEX calls the token as Factom. Now that Factom is freely tradable, this post will explain the different ways to express bullish and bearish views on this new cryptocurrency.

Spot Trading

Buying and selling Factom on a spot basis is quite simple. The most liquid Factom currency pair is Factom/Bitcoin (FCT/XBT). Poloniex is the leading exchanges by volume.

Buying Factom

To buy Factom, send Bitcoin to the exchange and exchange it for Factom. This must be done on a fully funded basis (i.e. there is no leverage).

Selling Factom

If you hold physical Factom, you can exchange it back for Bitcoin. Selling Factom you don’t possess is not possible.

Leveraged or Derivatives Trading

For most of the readers of this blog, leveraged trading / speculating presents a more interesting way to trade Factom. With the exception of Bitcoin and Litecoin, leveraged or derivatives trading on altcoins was not possible. BitMEX recognised that Bitcoin traders would like to speculate on Factom with leverage and using only Bitcoin as margin.

BitMEX recently launched the FCT7D, a weekly expiring FCTXBT futures contract. Each FCT7D contract represents 1 FCT. The contract expires each Friday at 12:00 GMT on the FCTXBT exchange rate. All margin, profit, and loss are conducted in Bitcoin. The maximum leverage allowed is 10x.

Buying Factom Futures

BitMEX Factom futures contracts allow traders to speculate on the future value of the FCTXBT exchange rate. A trader who wishes to go long 1,000 FCT, must buy 1,000 FCT7D contracts. The beauty of FCT7D is that it requires Bitcoin as margin. The maximum leverage is 10x. If the FCT7D price is 0.005, the trader must post 0.5 Bitcoin as margin (1,000 Contracts * 0.005 FCTXBT * 10%). If the price rises to 0.006, the profit is 1 Bitcoin = (0.006 – 0.005) * 1,000.

Selling Factom Futures

Short selling, or selling something you don’t possess is usually impossible with altcoins. Using FCT7D, traders are able to placed leveraged bearish bets on Factom as long as they own Bitcoin. For example, a trader who wishes to go short 1,000 Factom, must sell 1,000 FCT7D contracts. Again only Bitcoin is required for margin. If the FCT7D price is 0.005, the trader must post 0.5 Bitcoin as margin (1,000 Contracts * 0.005 FCTXBT * 10%). If the price falls to 0.004, the profit is 1 Bitcoin = (0.004 – 0.005) * -1,000.

Placing leveraged trades, and shorting Factom using only Bitcoin is only possible with BitMEX’s FCT7D futures contract. FCT7D Contract Description

Start Trading Factom Now

How To Trade Ether

The hottest new altcoin on the block is Ether (ETH). Ether is the token used to power the Ethereum protocol’s smart contracts. Now that Ether is freely tradable, this post will explain the different ways to express bullish and bearish views on this new cryptocurrency.

Spot Trading

Buying and selling Ether on a spot basis is quite simple. The most liquid Ether currency pair is Ether/Bitcoin (ETHXBT). Poloniex and Kraken are the leading exchanges by volume.

Buying Ether

To buy Ether, send Bitcoin to the exchange and exchange it for Ether. This must be done on a fully funded basis (i.e. there is no leverage).

Selling Ether

If you hold physical Ether, you can exchange it back for Bitcoin. Selling Ether you don’t possess is not possible.

Leveraged or Derivatives Trading

For most of the readers of this blog, leveraged trading / speculating presents a more interesting way to trade Ether. With the exception of Bitcoin and Litecoin, leveraged or derivatives trading on altcoins was not possible. BitMEX recognised that Bitcoin traders would like to speculate on Ether with leverage and using only Bitcoin as margin.

BitMEX launched the ETH7D, weekly expiring ETHXBT futures contract, when spot trading became available last Friday. Each ETH7D contract represents 1 ETH. The contract expires each Friday at 12:00 GMT on the ETHXBT exchange rate. All margin, profit, and loss are conducted in Bitcoin. The maximum leverage allowed is 5x.

Buying Ether Futures

BitMEX Ether futures contracts allow traders to speculate on the future value of the ETHXBT exchange rate. A trader who wishes to go long 1,000 ETH, must buy 1,000 ETH7D contracts. The beauty of ETH7D is that it requires Bitcoin as margin. The maximum leverage is 5x. If the ETH7D price is 0.005, the trader must post 1 Bitcoin as margin (1,000 Contracts * 0.005 ETHXBT * 20%). If the price rises to 0.006, the profit is 1 Bitcoin = (0.006 – 0.005) * 1,000.

Selling Ether Futures

Short selling, or selling something you don’t possess is usually impossible with altcoins. Using ETH7D, traders are able to placed leveraged bearish bets on Ether as long as they own Bitcoin. For example, a trader who wishes to go short 1,000 ETH, must sell 1,000 ETH7D contracts. Again only Bitcoin is required for margin. If the ETH7D price is 0.005, the trader must post 1 Bitcoin as margin (1,000 Contracts * 0.005 ETHXBT * 20%). If the price falls to 0.004, the profit is 1 Bitcoin = (0.004 – 0.005) * -1,000.

Placing leveraged trades, and shorting Ether are only possible with BitMEX’s ETH7D futures contract. ETH7D Contract Description 

BitMEX Launches 15x Leveraged Litecoin Futures

BitMEX is proud to announce the launch of the world’s first Litecoin futures contract margined in Bitcoin. There is no need to hold Litecoin in order to trade / speculate on the Bitfinex LTCUSD exchange rate.

Contract Specifications

Ticker Symbol: XLT7D, The BitMEX Weekly Litecoin / USD Futures Contract

Traders gain or lose 0.001 Bitcoin per $1 movement in the Bitfinex LTCUSD exchange rate.

The contract settles every Friday at 12:00 GMT.

Trade with leverage of up to 15x. Margin, profit, and loss are all denominated in Bitcoin.

For more details, please read Series Guide: XLT.

Weekly Expiring XBT Contracts

Due to customer demand, BitMEX is introducing a weekly expiring XBT contract. The Speculation or XBT series of Bitcoin / USD futures contracts allow leverage of up to 25x.

Ticker Symbol: XBT7D, The BitMEX Weekly Quanto Bitcoin / USD Futures Contract.

Traders gain or lose 0.00001 Bitcoin per $1 movement in the Bitfinex BTCUSD exchange rate.

The contract settles every Friday at 12:00 GMT.

For more details, please read Series Guide: XBT.

Advanced Order Types

Stop Limit orders will be available starting next week. If there are additional order types that you require as a trader, please let us know.