What does Crypto.com contract delivery mean?

Contract delivery on Crypto.com involves exchanging the underlying cryptocurrency on the specified settlement date, offering traders leveraged exposure, price speculation, and risk mitigation opportunities.

Dec 01, 2024 at 12:32 am

What does Crypto.com Contract Delivery Mean?

Contract delivery on Crypto.com refers to the process of fulfilling futures contract obligations by delivering or receiving the underlying asset (e.g., Bitcoin or Ether) on the specified settlement date.

How Does Crypto.com Contract Delivery Work?

1. Entering a Futures Contract:

   • Traders enter into futures contracts on Crypto.com, agreeing to buy or sell a specific cryptocurrency at a predetermined price and delivery date.

2. Position Management:

   • Traders can manage their positions until the delivery date, including entering into opposite positions to close out existing contracts or adjusting the size of their positions.

3. Physical Delivery:

   • On the settlement date, if the trader has an open position for a buy contract, they will receive the underlying cryptocurrency in their現貨 賬戶; if they have an open position for a sell contract, they will deliver the cryptocurrency from their現貨 賬戶.

4. Cash Settlement:

   • In some cases, instead of physical delivery, a cash settlement may occur. This involves settling the contract's value in either fiat currency or another cryptocurrency instead of delivering the underlying asset.

Why Trade Contract Delivery on Crypto.com?

• Leverage Exposure: Contracts allow traders to gain leveraged exposure to cryptocurrencies without the need to hold the underlying assets.
• Price Speculation: Contract delivery enables traders to speculate on price movements and potentially profit from market fluctuations.
• Risk Mitigation: Traders can use contract delivery to hedge against market risk or to offset potential losses in their spot positions.

How to Execute Contract Delivery on Crypto.com

1. Enable Delivery Settlement: Traders must ensure their accounts are enabled for delivery settlement by completing the required verification procedures.
2. Place a Delivery Contract Order: Enter an order specifying the desired contract (e.g., BTCUSD), contract quantity, and side (buy/sell).
3. Monitor Position: Track the status and performance of the open contract until the settlement date.
4. Settlement: On the delivery date, the trader's account will either receive or deliver the underlying cryptocurrency or receive a cash settlement, as per the terms of the contract.