Bitaigen Research In this article we systematically outline the concept and operating mechanism of Bitcoin quarterly contracts, helping readers understand their role in the futures market, delivery rules, and leverage characteristics. Through step‑by‑step analysis, you can learn how to use these contracts for risk hedging or speculative purposes and gain a clear view of common misconceptions. For a deeper dive into the details, feel free to continue reading.
Bitcoin quarterly contracts are an important contract type in the futures market; the following sections provide a detailed explanation.
Bitcoin Quarterly Contract refers to a Bitcoin‑denominated futures contract whose delivery month spans a single quarter. The contract is settled or delivered at a predetermined price on the expiry date, and it operates with leverage.
What does a Bitcoin Quarterly Contract mean?
Through crypto‑asset contract trading, traders form views on the price movement of the underlying asset and can employ leverage to speculate or hedge against adverse price changes, thereby reducing portfolio risk.
A futures contract (also known as a fixed‑maturity or “deliverable voucher”) is an agreement to buy or sell the underlying asset at a pre‑agreed price on a specific future date.
Main features of a quarterly contract
- Settled in BTC: The contract is priced and settled in Bitcoin, which lowers the entry barrier for newcomers.
- Expiration / delivery date: For example, the BTCUSD 0925 contract expires on 2020‑09‑25 08:00:00 UTC, and the system stops accepting new orders 10 minutes before expiry.
- Contract multiplier: Each contract represents 100 USD. For instance, a long position of 10 contracts corresponds to 1 000 USD, while a short position of 20 contracts corresponds to 2 000 USD.
How delivery contracts work
- Margin and settlement: Binance delivery contracts use BTC as margin, the contracts are also settled in BTC, and trading fees are paid in BTC. (U.S. users should access these products via Binance.US, not the global Binance platform.)
- Fee structure: A multi‑tier fee system is used; certain market‑making tiers may receive discounts or rebates to incentivize liquidity provision.
- Delivery fee: If an open position remains at settlement, a delivery fee is charged. The fee follows the published rate schedule and is applied as a taker‑side fee on all positions on the delivery day.
- Minimum price movement: The smallest price increment for delivery contracts is 0.10 USD, whereas perpetual contracts have a minimum tick size of 0.01 USD.
Risk‑management tips
- Leverage and position size: The higher the leverage employed, the smaller the maximum allowable position size. It is advisable to become familiar with the position‑size calculation formula and to control exposure prudently.
- Margin requirements: Always monitor the margin ratio and ensure sufficient buffer to withstand price volatility.
Note: Contract trading carries a high barrier to entry; it is recommended to engage only after acquiring basic financial knowledge and completing systematic training on the relevant skills.
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