Lisk trading launches Friday, May 27 at 12:00 UTC.
Have you heard of Lisk? It’s the hottest new altcoin. It just completed its Initial Coin Offering, raising US$6 million. The coin is now trading on the secondary market. Trading volumes and the price are surging.
LSKXBT is a leveraged trading product that allows traders using only Bitcoin to go long or short Lisk with up to 3.33x leverage. The leverage will increase as liquidity improves.
Each LSKXBT contract is worth 1 LSK, and quoted in XBT. The underlying of LSKXBT is the Poloniex LSK/XBT exchange rate.
LSKXBT does not have an expiry date. Buyers will receive the Poloniex LSK funding rate (when it becomes available, currently set at 0%), and pay the XBT funding rate. Shorts receive the Poloniex XBT funding rate, and pay the LSK funding rate. Read Swaps 101 to learn more about how it works.
If you have some Bitcoin, you can go long LSKXBT with leverage.
You want to go long 10,000 LSKXBT contracts. The current price is 0.0001 XBT. The Bitcoin value of 10,000 LSKXBT contracts is 1 XBT. Because BitMEX offers 3.33x leverage, you only have to put up 30% * 1 XBT or 0.3 XBT to go long 10,000 contracts.
The price increases to 0.0002 XBT. Your profit is (0.0002 XBT – 0.0001 XBT) * 10,000 contracts or 1 XBT.
If you have some Bitcoin, you can go short LSKXBT with leverage. There is no need to borrow LSK to short it. That’s one of the main benefits of trading BitMEX products.
You want to go short 10,000 LSKXBT contracts. The current price is 0.0001 XBT. The Bitcoin value of 10,000 LSKXBT contracts is 1 XBT. Because BitMEX offers 3.33x leverage, you only have to put up 30% * 1 XBT or 0.3 XBT to go short 10,000 contracts.
The price decreases to 0.00005 XBT. Your profit is (0.00005 XBT – 0.0001 XBT) * -10,000 contracts or 0.5 XBT.
To start trading, all you need is a BitMEX account and Bitcoin. The Lisk market opens tomorrow (Friday May 27) at 12:00 UTC.