BitMEX Introduces Prediction Markets for Crypto Traders
BitMEX, a leading cryptocurrency derivatives exchange, has now added Prediction Markets to its platform. This new feature allows traders to speculate on the outcomes of various real-world events, including the financial recovery of bankrupt crypto projects and the potential approval of Bitcoin ETFs.
According to a blog post by BitMEX, Prediction Markets are a new trading instrument that enables users to bet on specific events across multiple sectors, including cryptocurrency and traditional finance. These markets also offer risk-hedging opportunities, providing a more risk-averse trading environment with defined outcomes.
Contracts Available on BitMEX’s Prediction Markets
BitMEX currently offers three Prediction Markets contracts:
- P_FTXZ26: Focuses on the recovery rate of customer claims related to FTX. Expires on December 25, 2026, at 20:00 UTC.
- P_XBTETF: Centers on the potential approval of a Bitcoin ETF by the U.S. SEC. Concludes on October 27, 2023, at 20:00 UTC.
- P_SBFJAILZ26: Allows speculation on whether Sam Bankman-Fried will receive a jail sentence. Ends on December 25, 2026, at 20:00 UTC.
How Prediction Markets on BitMEX Work
Prediction Markets on BitMEX function similarly to existing futures contracts but with some distinctions:
- Contracts are priced based on the Last Price.
- Leverage is not available.
- Margin and settlements occur in Tether (USDT).
- Payouts are between 0 and 100.
- Maker fees are 0.00%, and taker fees are 0.25%.
- Early settlement is possible if the event occurs before the contract’s expiry.
- Service is restricted in certain jurisdictions.
Contracts have values between zero and one USD and are quoted in percentage terms. BitMEX’s team ensures clear definitions of outcomes for all contracts, with settlements conducted in USDT.
Availability and Launch Time
The initial set of Prediction Markets contracts became available on September 13 at 03:00 UTC.
Featured Image via Pixabay
Hot Take: BitMEX Expands Trading Opportunities with Prediction Markets
BitMEX’s addition of Prediction Markets to its platform opens up new trading opportunities for crypto enthusiasts. Traders can now speculate on real-world events and hedge risks in a more controlled environment. This feature caters to those seeking defined outcomes and allows them to bet on various scenarios, including the recovery of bankrupt crypto projects and the approval of a Bitcoin ETF. BitMEX’s Prediction Markets operate similarly to futures contracts, but with some notable differences in terms of pricing, leverage, and settlement. The availability of these contracts presents a unique avenue for traders to engage in speculative trading while managing their risks. With the launch of Prediction Markets, BitMEX continues to innovate and address the evolving needs of crypto traders.
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