The XBJ chain of futures contracts allows traders to speculate on the future price of the Bitcoin / Japanese Yen exchange rate.
The XBJ futures’ underlying is the Bitcoin Yen Price Index. It is an equaly weighted index using the prices from Quoine and bitFlyer FX. Both the underlying and the futures are quoted in JPY. Margin and PNL are denominated in Bitcoin.
|XBT Contract Value||Multiplier / Futures Price in JPY|
|JPY Contract Value||100 JPY|
|USD Contract Value||XBT Contract Value * XBTUSD|
|PnL Calculation||# Contracts * Multiplier * (1/Entry Price - 1/Exit Price)|
Traders who want to profit from an increase in the Bitcoin / JPY Index, will buy XBJ 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 XBJ futures contracts feature high leverage of up to 100x.
For example, to buy 100 Bitcoin worth of contracts, you will only require 1 Bitcoin of Initial Margin.
The XBJ futures contracts settle on the Bitcoin Yen Price Index. Given these futures contracts have a fixed expiry date and thus will trade according to an annualised basis, for marking and liquidation purposes these contracts are marked according to Fair Price Marking.
Settlement will occur on the last Friday of the Settlement Month.
A trader wants to goes long 100 XBT worth of XBJM17 (the Bitcoin JPY futures contract expiring in June 2017) trades at 100,000 JPY. As the leverage is 100x, the trader only needs 1 XBT of margin for this trade.
The trader must buy 100,000 contracts: (100,000 JPY / 100 JPY) * 100 XBT.
On settlement, the Bitcoin JPY Price Index settles at 200,000 JPY.
The trader’s profit will be: 100,000 * 100 JPY * (1/100,000 JPY - 1/200,000 JPY) = 50 XBT