What does Bithumb contract mean

Bithumb contract is a derivative trading platform offered by South Korea-based cryptocurrency exchange Bithumb, enabling traders to speculate on the future price of cryptocurrencies without owning the underlying assets.

Nov 12, 2024 at 05:56 am

What does Bithumb contract mean?

Bithumb contract refers to a derivative trading platform offered by South Korea-based cryptocurrency exchange Bithumb. It allows traders to speculate on the future price of cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), without actually owning the underlying assets.

How does Bithumb contract work?

Bithumb contract trading is based on futures contracts, which are agreements to buy or sell a certain amount of an asset at a predetermined price on a future date. In the case of Bithumb contract, the underlying asset is a cryptocurrency. Traders can either take a long position, speculating that the price of the asset will go up, or a short position, speculating that the price will go down.

What are the benefits of trading on Bithumb contract?

There are a number of benefits to trading on Bithumb contract, including:

• High leverage: Bithumb contract trading offers high leverage, allowing traders to increase their potential profits. However, it is important to remember that leverage can also magnify losses.
• Low fees: Bithumb contract trading fees are relatively low, making it an attractive option for traders who want to keep their costs down.
• 24/7 trading: Bithumb contract trading is available 24/7, so traders can trade at any time of day or night.

What are the risks of trading on Bithumb contract?

There are also a number of risks associated with trading on Bithumb contract, including:

• Price volatility: Cryptocurrency prices can be very volatile, so it is important to understand the risks involved before trading on Bithumb contract.
• Liquidation: If the price of the asset moves against you, you may be liquidated, which means you will lose your entire investment.
• Counterparty risk: When you trade on Bithumb contract, you are counterparty to the exchange. This means that if the exchange fails, you may lose your funds.

How do I start trading on Bithumb contract?

To start trading on Bithumb contract, you will need to create an account on the Bithumb website. Once you have created an account, you will need to deposit funds into your account. You can then use these funds to trade on Bithumb contract.

What are the different types of Bithumb contract?

There are two main types of Bithumb contract: perpetual contracts and quarterly futures contracts. Perpetual contracts are contracts that never expire, while quarterly futures contracts expire every three months.

What are the trading fees on Bithumb contract?

The trading fees on Bithumb contract vary depending on the type of contract you are trading. Perpetual contracts have a maker fee of 0.05% and a taker fee of 0.10%. Quarterly futures contracts have a maker fee of 0.02% and a taker fee of 0.04%.

What is the minimum trade size on Bithumb contract?

The minimum trade size on Bithumb contract varies depending on the type of contract you are trading. Perpetual contracts have a minimum trade size of 0.01 BTC, while quarterly futures contracts have a minimum trade size of 0.001 BTC.

What is the maximum leverage on Bithumb contract?

The maximum leverage on Bithumb contract varies depending on the type of contract you are trading. Perpetual contracts have a maximum leverage of 100x, while quarterly futures contracts have a maximum leverage of 50x.

What is the liquidation price on Bithumb contract?

The liquidation price on Bithumb contract is the price at which your position will be liquidated. If the price of the asset moves against you and reaches the liquidation price, you will lose your entire investment.

What is the margin call on Bithumb contract?

A margin call occurs when your account equity falls below a certain level. When this happens, you will be required to add more funds to your account to maintain your position. If you fail to do so, your position will be liquidated.

What is the settlement date on Bithumb contract?

The settlement date on Bithumb contract is the date on which the contract expires. On this date, the contract will be settled at the spot price of the underlying asset.