ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Tuesday Dec 11th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Crypto Facilities To Launch Inverse Litecoin Futures

By

Matthew

De Silva

WriterETHNews.com

Is bitcoin too mainstream for you? Bitcoin futures, too? Well, in the United Kingdom, a cryptocurrency exchange will soon debut inverse Litecoin futures. Buckle up.

At 4:00 p.m. on June 22, 2018, inverse Litecoin futures will begin trading on Crypto Facilities, a digital asset trading platform based in the United Kingdom. Denominated in US dollars, this financial product will allow traders to select long or short positions in the cryptocurrency.

At the time of writing, Litecoin is the sixth-largest cryptocurrency by market capitalization ($5.5 billion), according to CoinMarketCap. There are approximately 57 million coins in the cryptocurrency's circulating supply and there's ostensibly a 24-hour global trading volume worth a little more than $257 million. Compared to its bitcoin cousin, which has a hard cap of approximately 21 million units, there's a significantly greater maximum supply of LTC (84 million units).

Date: June 20, 2018
Date: June 20, 2018
Source

Glancing at the Litecoin markets, the LTC/BTC trading pair is the most popular, but the Tether trading pair follows closely behind. OKEx (a Hong Kong exchange) dominates the charts, with its LTC/BTC and LTC/USDT trading pairs accounting for 27.49 percent of the total Litecoin trading volume. In fact, GDAX is the only well-known, US-based exchange among the top 10 on the Litecoin charts.

The reference rate for inverse LTC futures is not immediately apparent, but according to the Crypto Facilities website, there will be three maturities available for trading: weekly, monthly, and quarterly. Unless there is a holiday, contracts will expire on Fridays (or for the longer contracts, the last Friday of the relevant month).

Incredibly, the exchange offers a maximum leverage of 50x on any of its cryptocurrency futures (gulp). It looks like the European Securities and Markets Authority's leverage limits applied only to contracts for differences and binary options, not cryptocurrency futures. Beware, leveraged trading is not for the faint of heart – or really, for most people. Leveraged cryptocurrency futures are, well, otherworldly (to the moon, anybody?).

It'll be fascinating to see if the Litecoin spot markets react to LTC futures, especially since the coin's trading volume is closely tied to bitcoin itself. While bitcoin futures were blamed for a downturn in the bitcoin price, it's not obvious whether something similar would happen for Litecoin.

Note: To be fair, it looks like the cryptocurrency-based futures products currently on offer by Crypto Facilities don't have massive volumes (only in the range of a few million dollars), so maybe the impact won't be all that dramatic after all.

Rather than attempt to explain inverse cryptocurrency futures, I direct interested readers to this 2016 research paper by Aleksey Bragin, a Ph.D. candidate who was then an assistant professor in the computer science department at the Moscow State Technical University in Russia. Suffice to say, it's a little complicated.

Matthew De Silva

Matthew has a passion for law and technology. He graduated from Georgetown University, where he studied international economics and music. Matthew enjoys biking and listening to tech podcasts. He lives in Los Angeles.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Crypto Facilities, cryptocurrency or other Ethereum cryptocurrencies and tokens news.