BONK Futures & Perpetual Contracts Guide - Delta Exchange (2024)

Understand what BONK futures are and how to use the leverage in futures to amplify your trading gains

Interested in trading BONK futures with Delta Exchange?

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BONK Contracts Listed on Delta Exchange

BONK futures enable you to take long (you profit when market goes up) and short positions (you profit when market goes down) on BONK. Futures have in-built leverage which acts as a multiplier to your returns. Currently, the following BONK contracts are listed on Delta Exchange.

BONK USDT Perpetual20x

-GroupBuy-GroupSell

BONK Futures Contract Details

Contract NameBONKUSDT
DescriptionBONK USDT Perpetual
Max. Leverage20x
Margin CurrencyUSDT
Taker Fees0.06%
Maker Fees0.04%
Contract Typeperpetual futures

What is BONK Futures Trading?

BONK Futures is an agreement between two parties to buy or sell BONK at a predetermined future date and price. The futures contract derives its value from the underlying cryptocurrency, BONK in this case. Thus the price of a BONK futures contract moves broadly in sync with the price of BONK.

Trading futures is thus an alternative to actually buying or selling the underlying crypto (aka spot trading). In spot trading, you can make profit by buying BONK low and selling it at a high price. This trade however works only in a bull market, i.e. when BONK price is going up. However, in a bear market, there is no trade possible in spot trading. Furthermore, leverage trading is not possible in spot trading.

Trading BONK through futures offers several advantages over spot trading of BONK, namely ability to both long or short and get access to leverage.

Trade profitably in all market conditions

You can profit from rising BONK price by going long BONK futures. And, when BONK price is falling, you can make profits by going short. This feature of futures trading enable you to navigate all types of market conditions profitably. Compare this with directly buying BONK. When price is falling, you can either sell your BONK or suffer losses. In spot trading, there is no way of profiting from falling prices.

BONK Futures & Perpetual Contracts Guide - Delta Exchange (1)BONK Futures & Perpetual Contracts Guide - Delta Exchange (2)

Hedge Price Risk

If you are a HODLer, you can still use futures to mitigate price risk. Say, you hold BONK. You can mitigate the risks you face when BONK is falling by going short BONK futures. In this case, a short futures position acts as a downside protection by effectively locking the $ value of your portfolio without the need for selling your BONK. Judicious use of futures as hedge can make you a better and stronger HODLer.

Amplify trading gains with leverage

Leverage enables you to open positions that are bigger than your trading capital. If you can open a position that is 10 times bigger than your trading capital, then you have 10x leverage available to you. The maximum allowed leverage for futures listed on Delta Exchange is as high as 100x. There are two ways of thinking about leverage:

  • BONK Futures & Perpetual Contracts Guide - Delta Exchange (3)

    Leverage as capital efficiency driver: For opening a position of a given size, higher the leverage lower the trading capital required. The leverage in spot trading is always 1x, while it is 3-4x in margin trading. This means futures is 20 to 100 times more capital efficient than spot or margin trading.

  • BONK Futures & Perpetual Contracts Guide - Delta Exchange (4)BONK Futures & Perpetual Contracts Guide - Delta Exchange (5)
  • BONK Futures & Perpetual Contracts Guide - Delta Exchange (6)

    Leverage as a returns amplifier: Because in a leverage trade position size is greater than the capital deployed, impact of prices moves gets magnified. The return on capital deployed is leverage times the price return. This means that you can amplify your trading gains the effective use of leverage.

If BONK increased from $0 to $0 your return would be equal to:

+

1.25

%

Without leverage

+

12.5

%

With 10x leverage

+

25

%

With 20x leverage

+

31.25

%

With 25x leverage

Benefits of Trading BONK Through Futures

BONK Futures & Perpetual Contracts Guide - Delta Exchange (7)

Magnify returns through leverage

In-built leverage magnifies impact of BONK price moves on your return on capital.

BONK Futures & Perpetual Contracts Guide - Delta Exchange (8)

Trading both rising & falling markets

Long when bullish. Short when bearish. Trade all market conditions profitably.

BONK Futures & Perpetual Contracts Guide - Delta Exchange (9)

Trade more with less

Deploy the capital freed up by using leverage in other trading opportunities

Why Trade BONK Futures on Delta Exchange

1

Increase profitability

Low trading fees, tight spreads & deep order books of our BONK contracts increase profitability of your trades

2

Improve risk management

Set TP / SL with your order, Leverage advanced order types and instruments (Options, Interest Rate Swaps) to create hedging strategies

3

Identify better trades

Use professional charts & advanced analysis tools to quickly identify trading opportunities

Have a Question About Trading BONK Futures?

Futures contracts have a fixed expiry date. In contrast, perpetual contracts do not expire.

Why Delta Exchange?

Register Now

BONK Futures & Perpetual Contracts Guide - Delta Exchange (10)Competitive spreads & fees

BONK Futures & Perpetual Contracts Guide - Delta Exchange (11)Generous Rewards

BONK Futures & Perpetual Contracts Guide - Delta Exchange (12)24/7 Support

BONK Futures & Perpetual Contracts Guide - Delta Exchange (2024)

FAQs

What is 100x leverage on Delta Exchange? ›

Leverage: All derivative contracts traded on Delta Exchange have built in leverage. The maximum allowed leverage varies from contract to contract and can go up to 100x for certain contracts. This means that with say 1 BTC, you can take a position of up to 200 BTC.

What is the difference between futures and perpetual futures? ›

Perpetual futures, also known as perpetual swaps or “perpetuals,” are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration date. Unlike traditional futures contracts, which have a set expiry date, perpetual futures can be held indefinitely.

How to trade perpetual futures in the US? ›

How to trade perpetual contracts. To trade perpetual futures, you will need to open an account with a cryptocurrency exchange that offers these contracts. Next, you need to fund your account in order to cover initial margin and maintenance margin requirements. Then you can select the contract that you wish to trade.

What is a contract in Delta Exchange? ›

Daily MOVE contracts Daily MOVE contracts track the movement of the underlying asset across a 24 hour period. The ticker for the Delta daily MOVE contract has the following format: MV-[Underlying_Asset]-D-[Settlement Date] where Settlement Date is in ddmmyy format.

How much leverage for $100 dollars? ›

For example, with a leverage ratio of 1:100, you can control a $10,000 position with only $100 in your account. The main advantage of using leverage is the potential to amplify your profits. With a small amount of capital, you can enter larger trades and potentially earn higher returns.

What leverage should I use for $100? ›

Many professional traders say that the best leverage for $100 is 1:100. This means that your broker will offer $100 for every $100, meaning you can trade up to $100,000.

How much leverage does delta Exchange give? ›

BTC Futures Contract Details
Contract NameBTCUSDTBTCUSD
Max. Leverage100x100x
Margin CurrencyUSDTBTC
Taker Fees0.06%0.06%
Maker Fees0.04%0.04%
2 more rows

How does leverage work in delta Exchange? ›

Leverage is the feature which enables a trader to open and control positions much larger than her capital. In the case of margin trading, this is achieved through explicit borrowing. For e.g. to buy 1 Bitcoin for $10,000, a trader with $1000 capital can borrow $9000 in margin trading.

What is 100x leverage in trading? ›

The leverage ratio 100:1 or 100x refers to controlling 100 times the value of your collateral in a leveraged crypto trade. For example, with $1,000 in collateral (margin), you can trade up to $100,000 in assets.

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