Perpetual Swaps, Quantos, and the Brilliance of BitMEX

Speculation Was Back

Image Credit: TradingView
  1. Simplicity. Traders had to be able to understand what they were buying and selling. The product needed to be as close to spot as possible. Besides increasing their experience, this also helped them prevent misunderstood, unexpected losses.
  2. Lower capital usage. Speculators wanted to be able to get as much exposure for as little capital at risk as possible. This may be where the “100x leverage” pseudo-marketing tagline came from.
  3. Belief in bitcoin. There are probably a few reasons why they chose to initially base everything solely around bitcoin, but it was clear that the exchange and their users had a strong belief in the cryptocurrency.
  4. Exchange protection. As much as BitMEX could give their customers lower capital usage and simplicity, they needed to be able to do so sustainably. They had to protect themselves from their own potential for loss.
  5. 24/7-ness. In stark contrast to traditional financial practices, cryptocurrency markets never slept.

Inverse Perpetuals and Liquidation Bots to the Rescue

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The Quirky Quantity-Adjusting Quantos Join the Party

Image Credit: Wikipedia

We Continue the Innovation




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Building new ways to access cryptocurrency markets.

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