China’s stock market is one of the most difficult markets for non-Chinese to access. Even for normal Chinese investors, trading with leverage both on the long and short side is almost impossible. BitMEX is committed to providing investors access to global markets using Bitcoin.
BitMEX’s China A50 Equity Index Futures Contract allows investors who possess Bitcoin the ability to speculate with leverage, long or short, on the Chinese equity market.
The China A50 Equity Index comprises the 50 biggest companies in China. The index is priced in CNY. However, investors using the BitMEX product will receive 0.0001 Bitcoin (XBT) per 1 CNY move in the index.
This is great for investors because if the China stock market rises by 10% and you are long, your futures contracts will be worth 10% more as well. The same is true if you are short.
The China stock market is open daily from 09:15 to 11:30 and then 13:00 to 15:00 Beijing Time (GMT + 8). Even though the stock market is only open Monday to Friday for 4 hours and 15 minutes, the BitMEX China A50 futures contract trades 24/7.
The BitMEX China A50 futures contract has monthly expiries. The contract expires based on the closing price of the BitMEX CHINA A50 Index to two decimal places. The closing price of the index is calculated using the last traded prices of the 50 index members. The settlement date is the 2nd to last business day in China of each month.
Your profit is determined by the difference between your entry price and the settlement price. For example, if you bought 100 A50G16 (February 2016 expiring) contracts at 10,000 CNY and the settlement price was 11,000 CNY, your profit would be 10 XBT or (11,000 CNY – 10,000 CNY) * 0.0001 XBT * 100 Contracts.
The BitMEX China A50 futures contracts allow investors to trade with up to 25x leverage. If you want to go long 100 XBT of China, you only need to deposit 4 XBT of equity. Because of the high leverage, the BitMEX China A50 futures contracts are margined according to the Dynamic Profit Equalisation system.
If you don’t have a BitMEX account, Register Here. Once you have registered, go to your Deposit Page and you will be given a unique deposit address where you must send Bitcoin. Once BitMEX has received your Bitcoin, it will be credited to your account and you can begin trading.