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Get Started Trading Index Futures With This Step-By-Step Tutorial!

Updated: Nov 25, 2019


In partnership with data and research company Brave New Coin (BNC), the BTSE exchange now hosts futures trading for a new crypto index called BBCX.


Built by Brave New Coin, the BBCX composite index combines the price of Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) into a single price. As BTC, ETH, and LTC are three of the crypto industry’s largest assets, the BBCX index shows the price strength for a segment of the market at a glance.


Free float market capitalization, expressed in USD, is used to determine the weights of each underlying asset. Asset weighting is set at the beginning of each quarter and will remain constant throughout the quarter. The asset weightings for the current quarter are: BTC, 60%; ETH, 33.25%; and LTC, 6.75%. The index is rebalanced on a quarterly basis so that it reflects the underlying assets’ market performance.


BTSE BBCX Futures Trading

BTSE has launched quarterly and monthly futures trading based on the price of the BBCX index. Similar to other futures on BTSE, BBCX index futures trading allows you to trade based on what you think the future price of the index will be.


Similar to BTSE’s other futures trading products, BBCX index futures are cash-settled. If you hold a position in BBCX futures through the time of expiration (quarterly or monthly), you will be paid out in cash according to your position size, relative to your entry and the price of the BBCX index price at time of expiration.


Each BBCX contract is 1/100 of the price of the BBCX index price.


Navigating To BBCX Futures Trading

Click on the futures trading tab on the upper left side of the top banner on the BTSE exchange. Then click the drop-down menu on the left side and choose the BBCX index, found at the bottom of the list.




Trading Example

The BBCX index is trading at $100 for monthly futures expiration. You go long 100 BBCX futures contracts, paying $100.


You hold through the expiration date to settlement, with the BBCX index monthly futures expiring at a price of $150.


At settlement, BTSE pays you $150 in USD, resulting in $50 profit.


You can also choose to trade as much as you like before expiration, opening and closing positions at your leisure for profit or loss, depending on the price action. You are paid out on each trade depending on profit or loss before expiration. Expiration only comes into play if you hold a position through its expiration date.

You can also apply your desired amount of leverage to these futures trades as well.


Safeguards

BNC monitors the BBCX index and the calculations behind it, separate from BTSE’s BBCX futures trading. This is a check and balance type of relationship to protect against bias, making the BBCX index an objective and transparent index that represents the overall market movement for some of crypto’s top main coins, condensed into one number.


On the futures trading side, BTSE will maintain the operation, security, and customer support functions of this derivative product (BBCX index futures trading).