Last week we revealed the new face of Poloniex, our upgraded web exchange. We’ve loved hearing all of your feedback on our redesign so far and are looking forward to rolling out more updates in the coming weeks. This week, we’re excited to announce what’s coming next on Poloniex, Poloniex Futures!
Launching in beta on July 10, 2020, Poloniex Futures will allow customers to trade Bitcoin futures from within their Poloniex account with up to 100x leverage while getting the highest maker rebates and lowest taker fees, no matter how much they’re trading. During our beta period, customers will be able to trade futures risk-free in a sandbox-like environment. All customers who set up their Poloniex Futures account will receive 10,000 USDT in demo money to begin trading. During this beta period, funds cannot be transferred into or out of your Poloniex Futures wallet.
Learn more about Poloniex Futures and get ready for our beta launch on July 10th.
What are futures?
Futures, also called futures contracts, are agreements to buy or sell currencies, commodities, or other financial instruments at a predetermined price and time and can be cash settled or physically settled. When you buy or sell a crypto futures contract, you are interacting with a contract that represents the asset rather than the asset itself. Once the contract is exercised, the exchange of the actual asset occurs.
Perpetual contracts are similar to futures contracts but don't have an expiration date. This means you can hold a position in a perpetual contract for as long as you'd like. The price of a perpetual contract is based on an underlying index price which means that perpetual contracts are often traded at a price that is similar to spot markets.
What are the benefits of trading futures?
- Hedging: Short or go long in a futures contract to hedge against adverse price movements of the underlying asset
- Price speculation: Futures contracts allow you to speculate on the direction of the underlying asset's price
- Trade with 100x leverage: You don't need to put up 100% of the contract's value amount when trading