What does AscendEX contract delivery mean?

AscendEX's contract delivery feature enables traders to secure physical possession of the underlying asset by settling futures contracts upon their expiration, providing tangible ownership and hedging opportunities.

Nov 30, 2024 at 09:07 am

What Does AscendEX Contract Delivery Mean?

AscendEX is a leading cryptocurrency exchange that offers a wide range of trading products and services, including spot trading, margin trading, futures trading, and options trading. Contract delivery is a key feature of AscendEX's futures trading platform, and it allows traders to take physical delivery of the underlying asset at the expiration of a futures contract.

How Does Contract Delivery Work on AscendEX?

When a trader enters into a futures contract on AscendEX, they are essentially agreeing to buy or sell a certain amount of the underlying asset at a specified price on a future date. The contract delivery date is the date on which the trader is obligated to take delivery of the asset (if they are the buyer) or deliver the asset (if they are the seller).

On the contract delivery date, the trader will be credited or debited the appropriate amount of the underlying asset, depending on whether they are the buyer or seller. The asset will be delivered to the trader's AscendEX wallet.

What are the Benefits of Contract Delivery?

There are several benefits to using contract delivery on AscendEX, including:

• Physical Delivery of the Underlying Asset: Contract delivery allows traders to take physical delivery of the underlying asset at the expiration of a futures contract. This can be beneficial for traders who want to use the asset for other purposes, such as hedging or speculation.
• Flexibility: Contract delivery provides traders with flexibility in how they manage their futures positions. Traders can choose to take delivery of the asset at the expiration of the contract, or they can close out their position before the expiration date.
• Reduced Counterparty Risk: Contract delivery reduces counterparty risk because the trader is not relying on a third party to fulfill the contract. This can be especially important in volatile markets.

How to Use Contract Delivery on AscendEX

To use contract delivery on AscendEX, traders must first open a futures trading account. Once an account is opened, traders can start trading futures contracts.

To enter into a futures contract, traders must select the underlying asset, the contract expiration date, and the contract size. Traders can also choose to use leverage to increase their potential profits.

Once a futures contract has been entered into, traders can monitor its progress on the AscendEX trading platform. Traders can also close out their position before the expiration date if they wish.

Conclusion

Contract delivery is a key feature of AscendEX's futures trading platform, and it allows traders to take physical delivery of the underlying asset at the expiration of a futures contract. This can be beneficial for traders who want to use the asset for other purposes, such as hedging or speculation. Contract delivery is also a flexible and convenient way to trade futures contracts.