AllXBTUSD8738.5-6.68%XBTM188722.0-7.13%XBTU188748.0-7.20%ADAM180.00003270-0.43%BCHM180.1561+3.51%ETHM180.07269+2.19%LTCM180.01689-0.71%XRPM180.00009515-2.94%.BXBT8742.06-6.48%.ETHXBT0.07130+2.96%.BVOL24H5.62+25.17%Funding: 02:43:17 @ 0.0093%Time: 9:16:42 AM
Upside Profit Contracts Guide

Overview

A BitMEX UP (Upside Profit) Contract is a contract that gives the buyer the right, but not the obligation, to buy the underlying instrument at a specified strike price on maturity date. They are Bitcoin settled.

Investors can only be net long UPs, they cannot short sell.

Mechanics of BitMEX UPs Markets

When trading UP contracts, a trader needs to be aware of several mechanics of the UPs market. The key components a trader needs to be aware of are:

  1. Contract Size: This is the notional of each contract. You can see this information under the Contract Specifications of each instrument.
  2. Position Marking: UP contracts are marked according to the Last Price.
  3. Margin: UP contracts are fully margined products. That means there is no leverage offered.
  4. Settlement: BitMEX employs an averaging over a period of time prior to settlement to avoid price manipulation in the calculation. This time frame may vary from instrument to instrument and traders should read the individual contract specifications to see when is expiry and the individual settlement calculation.

UP Contract Example

XBT7D_U110 is the 7-day UP contract for Bitcoin. Traders can speculate on the price of Bitcoin at the Settlement Date, which occurs every Friday at 12:00:00 PM UTC. The margin required is the entry price, making it a fully margined product. The Settlement Procedure uses a 30-minute Time Weighted Average Price (TWAP) prior to expiry.

The specific Contract Calculations are as follows:

Contract Calculations
XBT Contract Value 0.1 XBT
USD Contract Value 0.1 XBT * .BXBT
PNL Calculation # Contracts * (Exit Price - Entry Price)
Settlement Price 0.1 * Max(0, (.BXBT30M - Strike)/.BXBT30M)