Quanto contract is a contract product that uses non-mainstream tokens to invest in mainstream currency spot price indices. Its underlying contract is the mainstream currency spot price index, for example the BTC spot price index. The margin currency is a non-mainstream token. The user invests in the token, while the profit and loss are also settled in the token.
For example: BTC/USD(HZM) Quanto contract is trading with BTC price with the USDspot price index, and uses HZM to carry out BTC bullish or bearish transactions. The contract price is based on the fundings of the perpetual contract mechanism to anchor the BTC spot price index, and closes the position with HZM as well. The profit and loss are calculated based on the number of HZM.
For example: When the price of the BTC/USDT index is 8000, the digital currency HZM is used, using a 10x leverage to invest more than 10,000 HZM. Then when the price of the BTC/USDT index rises to 9000, it will be liquidated, and profit 12500 HZM (profit and loss = (9000-8000)/8000*10000*10).
Features of the Quanto contract:
- Quanto contract transactions are not related to the spot price and liquidity of the margin currency.
- The index price is a comprehensive index of mainstream currency spot prices obtained from multiple major exchanges, with high stability and fairness.
- The positive perpetual contract is easier to use with fair and transparent price data.
The following is an introduction to the XT.COM Quanto contract:
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Quanto Contract Parameters |
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Contract pairings |
Contract size |
Price unit |
Multiplier |
|
BTC/USDT（XWC） |
0.001BTC |
Piece |
100x |
|
BTC/USDT（TP） |
0.001BTC |
Piece |
100x |
|
BTC/USDT（HZM） |
0.1BTC |
Piece |
100x |
|
ETH/USDT（XT） |
0.01ETH |
Piece |
50x |
Risk warning: Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. XT will make best efforts to choose high-quality coins but will not be responsible for your trading losses.