A Bitcoin quarterly contract is a financial derivative that allows investors to buy or sell Bitcoin at a specific price on a specific date in the future. The emergence of this kind of contract has injected more liquidity and investment opportunities into the digital currency market, and also allows investors to better manage risks and obtain returns. Next we’ll dive into the significance and impact of Bitcoin quarterly contracts.

 1. Definition and characteristics of Bitcoin quarterly contract

The Bitcoin quarterly contract is a derivatives instrument that allows investors to buy or sell a certain amount of Bitcoin at an agreed-upon price on a specific date in the future. Compared with traditional spot trading, quarterly contracts have greater flexibility and leverage, allowing investors to trade more flexibly in the market and obtain more profits from it.

 2. How the Bitcoin quarterly contract works

Bitcoin quarterly contracts are typically offered by exchanges, where investors can open contract positions. On the expiration date of the contract, investors can choose to implement the contract, that is, buy or sell Bitcoin at the agreed price, or choose to close the position. This flexible trading mechanism allows investors to better respond to market fluctuations and avoid risks.

 3. Risks and challenges of Bitcoin quarterly contracts

Although Bitcoin quarterly contracts provide investors with more trading opportunities, they also come with certain risks and challenges. The Bitcoin market is highly volatile, and price fluctuations may cause investors to lose money. In addition, the leverage effect of quarterly contracts will also magnify investors' returns, but it will also increase risks.

 4. Market Impact of Bitcoin Quarterly Contracts

The emergence of Bitcoin quarterly contracts has injected more liquidity into the digital currency market and attracted more investors to participate. Investors can conduct long and short transactions through quarterly contracts and earn profits from them. In addition, the trading volume of Bitcoin quarterly contracts has gradually increased, providing more impetus for market development.

 5 Conclusion

As an important derivatives tool in the digital currency market, Bitcoin quarterly contracts provide investors with more trading opportunities and risk management tools. When participating in Bitcoin quarterly contract transactions, investors need to carefully assess market risks and plan trading strategies appropriately. Only with an in-depth understanding of the market and mastering trading skills can we better grasp market opportunities and achieve financial value-added.

By having an in-depth understanding of Bitcoin quarterly contracts, investors can better grasp the trends of the digital currency market, effectively manage risks, and obtain more returns. Today, as the digital currency market continues to develop, Bitcoin quarterly contracts will continue to play an important role and become one of the important tools for investors to obtain income. I hope every investor can succeed in the digital currency market and realize wealth appreciation!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As we all know, contract trading has the function of risk hedging. When we are doing spot trading, if we feel that there is a risk of falling, we can hedge the risk by buying a contract, and then close the contract after buying back the spot. In this way, It achieves risk hedging very well, reduces the impact of price fluctuations, and saves time in mobilizing funds back and forth. However, the risks of digital currency contract transactions cannot be ignored. Many investors still don’t know what the Bitcoin quarterly contract means? In fact, it is one of the delivery contracts. Let the editor of the currency circle take you to understand the Bitcoin quarterly contract in an article.

 What does Bitcoin Quarterly Contract mean?

Through crypto asset trading contracts, traders judge the price trend of the underlying asset and then use leverage to speculate. Traders can also hedge against adverse price changes, reducing portfolio risk.

A futures contract, also known as a fixed maturity or "deliverable note," is an agreement to buy or sell an underlying asset at a pre-agreed price at a specific date and time in the future.

Quarterly contracts have the following characteristics:

● Settled in BTC: The contract is priced and settled in BTC. This provides convenience for new users to participate in the market.

● Expiration/delivery date: BTCUSD 0925 contract will be at 08:00:00 on September 25, 2020
UTC expires. Users need to note that the system will no longer accept commission orders 10 minutes before expiration.

● Contract multiplier: The contract multiplier represents the value of the contract. Each contract represents $100. For example, BTCUSD worth $1000
0925 long position ($100 x 10 contracts) and 0925 short position ($100 x 20 contracts) in BTCUSD worth $2,000.

 How does the delivery contract work?

The margin used for the delivery contract is BTC, the contract is also settled in BTC, and transaction fees are also paid in BTC.

Like Binance’s other products, delivery contracts follow a multi-tiered fee system. And, it has some additional features. For example, certain tiers may offer discounted rates (or fee rebates) to market makers. This means that traders who are able to provide liquidity to the market will essentially reap the benefits.

If there are open positions at settlement, delivery fees must be paid. Please note that you cannot open a quarterly contract position in the 10 minutes before expiration. The settlement fee will be charged according to the rate table, which will be used as the taker fee corresponding to all positions settled on the delivery day.

The price change range of the delivery contract product is US$0.10. This means that price changes in the contract occur in $0.10 increments. In comparison, Binance’s perpetual futures product has a minimum price movement of $0.01. You should pay close attention to margin requirements and ensure you adopt appropriate risk management.

It is worth noting that the higher the leverage you use, the smaller the maximum position size you can open. Do you want to know a simple position sizing formula? Learn how position sizing is calculated in trading.

To sum up, this is the editor’s answer to the question of what Bitcoin quarterly contracts mean. I hope that this article by the editor of Bitcoin Circle on understanding Bitcoin quarterly contracts can help investors understand Bitcoin quarterly contracts. Have a more comprehensive and in-depth understanding of the concept of currency quarterly contracts. The editor of Coin Circle here reminds all investors that the threshold for contract transactions in digital currencies is actually very high. We must understand the logic of contract transactions, and we also need to make some efforts to learn the basic skills necessary for our transactions. , only in this way can we conduct transactions better. If we do not have basic financial knowledge, we should not try it easily.