Ethereum Classic is a continuation of the original Ethereum blockchain - the classic version preserving untampered history; free from external interference and subjective tampering of transactions. The initial Ethereum hard fork that created the Ethereum Classic chain was executed at approximately 14:30 UTC on July 20 at block 192,000. Holders of physical Ethereum effectively held coins in both chains and the coins could be independently sent after block 192,000. You can track the length of each individual chain at ETHStats.
The Ethereum Classic currency is denominated by the currency code ETC and is commonly referred to as Ether Classic. Further information about ETC and the Ethereum Classic Project can be found here
On BitMEX, the ETC derivative is in the form of a Futures Contract and allows traders to speculate on the future value of the Ether Classic / Bitcoin (ETC/XBT) exchange rate. Traders need not have Ether Classic to trade the futures contract as it only requires Bitcoin as margin.
ETC futures’ underlying is the ETC/XBT exchange rate on Poloniex as recorded in the .ETCXBT Index. The futures are quoted in Bitcoin and all margin and PNL calculations are denominated in Bitcoin.
|XBT Contract Value||Multiplier * Futures Price * 1 ETC|
|USD Contract Value||XBT Contract Value * XBTUSD|
|PnL Calculation||# Contracts * Multipler * (Exit Price - Entry Price)|
Traders who think that the price of ETC 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 ETC futures contracts feature a leverage of up to 20x.
For example, to buy 10 Bitcoin worth of contracts, you will only require 0.5 Bitcoin of Initial Margin.
The ETC futures contracts settle on the .ETCXBT30M Index Price. Settlement occurs every Friday at 12:00 UTC.
A trader wants to goes long 10 XBT of ETC futures contracts. ETC7D (the weekly ETC futures contract) trades at 0.0020 XBT. As the leverage is 20x, the trader only needs 0.5 XBT of margin for this trade.
The trader must buy 5,000 contracts: 10 XBT / (0.0020 XBT * 1).
A few days later, the price rises to 0.0025 XBT and the trader sells all their contracts.
The trader’s profit will be: 5,000 * 1 * (0.0025 - 0.0020) = 2.5 XBT