The successful introduction of the BTC Perpetual is a major milestone in the roadmap of derivative products that are being launched by EQUOS.
FREMONT, CA: EQUOS, the cryptocurrency exchange of Diginex Limited, the digital assets financial services company, has declared that it has launched its Bitcoin (BTC) Perpetual Futures Contract.
The successful introduction of the BTC Perpetual is a major milestone in the roadmap of derivative products that are being launched by EQUOS. Derivatives linked to traditional financial assets like commodities, equities, or foreign exchange often eclipse the value traded in the underlying spot markets by hundreds of times.
Derivative products are nascent in the digital asset industry and are presently not provided by some of the major digital asset exchanges. From near nonexistence only a few years ago, the size of the virtual currency derivatives market has started to show signs of its immense growth potential, growing at over four times the spot market during the third quarter of 2020 as well as reaching a volume peak of $67 billion in a day at the end of November.
The Perpetual contract is best fitted to the current trading environment and can be conveniently utilized for macro position-taking as well as for risk management purposes. The product is tailored to ensure that institutional investors and professional traders can always benefit from transparent as well as fair market conditions. Prices and liquidity on the EQUOS exchange are only offered by independent market makers, and EQUOS does not make markets on its own platform, making sure that all traders always have equal visibility of the order book.
In addition, the EQUOS BTC Perpetual contract is underpinned by a Liquidation Platform that is exclusively committed to handling liquidation events. Pricing in the pool is offered by several independent market makers that add depth as well as price competition to make sure that liquidation orders are executed at the market price. If there is not enough liquidity to handle the size of liquidated positions, the main EQUOS order book can act as a backup. EQUOS also offers a final backstop for liquidation events through its Liquidation Reserve, which is part-funded by liquidation fees and a portion of trading revenues.