BitMEX to Introduce XRP-USD Swap, Set To Remove Two Futures Contracts
BitMEX is rolling on XRP-US dollar swap to serve the growing derivatives market. The new Ripple USD quanto swap is a cross-currency which involves a counterparty paying the other person with an international interest rate. After the contract has come to an end, the speculative amount will be settled using cash through an previous established exchange rate. The new type of swaps are helpful to investors looking for liquidity and can earn a specified margin through their choice of currency.
The new offering of XRP/USD swap will roll on Feb 5, 2020. While the firm is set to introduce the new product, BitMEX is scheduled to delist the active BitMEX Down and BitMEX UP contracts. The firm is scheduled to settle the last ones of these contracts before the end of this month. After the settlement, the firm will not issue any UP or Down contracts again. As per the press statement released by the firm which offers both crypto exchange as well as derivatives trading services, the contracts which will be affected by the new developments are XBT7D_D95 as well as XBT7D_U105.
As per the press statement by BitMEX, the details of the contract would be availed on Testnet starting from Friday but more information will be released afterwards.
An Up contract is one which enables a seller of the said contract to take part in a possible upside of the instrument involved. On the other hand, a Down contract enables a buyer of the said contract to take part in a possible downside of the instrument involved.
The company revealed that new products and services will be introduced gradually in the near future as it is working on them.
Keep it here for more details about the new swap product.