The Basic Attention Token (BAT) is used to obtain a variety of advertising and attention-based services on the Brave platform. The BAT Token is meant for exchange between publishers, advertisers, and users on top of the Ethereum blockchain, and will be used in the Brave Browser.
The BAT ICO has already concluded, and BAT is trading on Bittrex.
On BitMEX, the BAT derivative is in the form of a Futures Contract and allows traders to speculate on the future value of the Basic Attention Token / Bitcoin (BAT/XBT) exchange rate. Traders need not have BAT to trade the futures contract, as it only requires Bitcoin as margin.
The BAT futures’ underlying is the BAT/XBT exchange rate on Bittrex as recorded in the .BATXBT Index. The futures are quoted in Bitcoin and all margin and PNL calculations are denominated in Bitcoin.
|XBT Contract Value||Multiplier * Futures Price * 1 BAT|
|USD Contract Value||XBT Contract Value * XBTUSD|
|PnL Calculation||# Contracts * Multiplier * (Exit Price - Entry Price)|
Traders who think that the price of BAT will rise will buy the futures contract. Conversely, traders who believe the price will drop will sell the futures contract.
All margin is posted in Bitcoin, that means traders can go long or short this contract using only Bitcoin. The BAT futures contracts feature a leverage of up to 2x.
For example, to buy 10 Bitcoin worth of contracts, you will only require 5 Bitcoin of Initial Margin.
The BAT futures contracts settle on the .BATXBT30M Index Price, which is based on Bittrex. Settlement occurs at 12:00 UTC.
A trader wants to goes long 10 XBT of BAT futures contracts. BATM17 (the quarterly BAT futures contract) trades at 0.0200 XBT. As the leverage is 2x, the trader only needs 5 XBT of margin for this trade.
The trader must buy 500 contracts: 10 XBT / (0.0200 XBT * 1).
A few days later, the price rises to 0.0250 XBT and the trader sells all their contracts.
The trader’s profit will be: 500 * 1 * (0.0250 - 0.0200) = 2.5 XBT