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.
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:
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:
|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)|