Crypto exchange BitMEX has just announced the launch of new ETH/USD futures that will allow users to speculate on the price of ETH in USD.
The platform has reported through an official statement this new investment instrument will be available on the exchange from May 5.
Just like in any other futures contracts, traders who believe that the price of ETH will rise will buy the contract, while those who believe it will fall will simply sell it.
According to BitMEX, these contracts will have a leverage of up to 50x. In addition, contracts have a fixed Bitcoin multiplier independent of the Ethereum price in USD, which allows traders to long or short the ETH/USD exchange rate without using ETH or USD. Traders post margin in XBT, and gain or lose Bitcoin as the ETH/USD price changes.
The first ETH/USD contract (ETHUSDM20) will expire in June.
This is not the exchange's first futures contract, as BitMEX already offers perpetual ETH contracts and ETH futures contracts.
A few days ago, iHodl reported the exchange had created a fund to fight the coronavirus and allocated $2.5M of its own funds.
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