The China A50 chain of futures contracts allows traders to speculate on the future price of the China A50 Equity Index. Traders globally can trade China without having Renminbi or access to the China A share stock market.
|Multiplier||0.0001 XBT per CNY|
|XBT Contract Value||Multiplier * Futures Price in CNY|
|CNY Contract Value||XBT Contract Value * XBTCNY|
|USD Contract Value||XBT Contract Value * XBTUSD|
|PnL Calculation||# Contracts * Multipler * (Exit Price - Entry Price)|
Traders who want to profit from an increase in the China A50 Index, will buy China A50 futures contracts. Conversely, if they believe the price will go down they will sell the futures contracts.
All margin is posted in Bitcoin, that means traders can go long or short this contract using only Bitcoin. The China A50 futures contracts feature high leverage of up to 25x.
For example, to buy 100 Bitcoin worth of contracts, you will only require 4 Bitcoin of Initial Margin.
The China A50 futures contracts settle on the China A50 Index. Settlement occurs each month on the 2nd to last business day in China at the closing price of the China A50 Index. The closing price of the China A50 Index is based on the last traded price of the index constituents. The China A share market closes at 15:00 Beijing Time or 07:00 UTC.
A trader wants to goes long 100 XBT of China A50. A50U16 (September 2016 BitMEX China A50 Futures Contract) trades at 10,000 CNY. As the leverage is 25x, the trader only needs 4 XBT of margin for this trade.
The trader must buy 100 contracts: 100 XBT / (10,000 CNY * 0.0001 XBT).
At settlement, the China A50 Index settles at 11,000 CNY.
The trader’s profit will be: 100 * 0.0001 XBT * (11,000 - 10,000) = 10 XBT