What time does the KuCoin contract settle?

What Time Does the KuCoin Contract Settle?

KuCoin, a renowned cryptocurrency exchange, offers a variety of contract trading options for traders of all levels. Understanding the settlement time of these contracts is crucial for effective risk management and profit maximization.

Settlement Time for KuCoin Contracts

KuCoin contracts settle at different times depending on the type of contract. The following is a breakdown of the settlement times for each contract type:

• Perpetual Contracts: Perpetual contracts do not have a fixed settlement time and continue to trade indefinitely until the trader closes their position.
• Quarterly Contracts: Quarterly contracts settle every three months on the last Friday of March, June, September, and December at 8:00 AM UTC.
• Bi-Quarterly Contracts: Bi-quarterly contracts settle every six months on the last Friday of June and December at 8:00 AM UTC.

Steps to Determine the Settlement Time for Your Contract:

1. Identify the Contract Type: Determine whether you are trading a perpetual, quarterly, or bi-quarterly contract. This information is typically displayed on the contract's trading page.
2. Check the Contract Specifications: Visit the contract's specifications page on KuCoin to confirm the settlement time. This page provides detailed information about the contract, including the settlement date and time.
3. Consider Time Zones: Keep in mind that the settlement time is based on UTC (Coordinated Universal Time). If you are located in a different time zone, adjust the settlement time accordingly.

Implications of Contract Settlement:

• Expiration and Rollover: For quarterly and bi-quarterly contracts, settlement marks the end of the contract period. Traders must either close their positions or roll them over to the next contract period.
• Profit Realization: At settlement time, traders realize their profit or loss on their contract positions. The profit or loss is automatically credited or debited to the trader's account.
• Margin Calls: If a trader's margin balance falls below the maintenance margin level during settlement, the exchange may issue a margin call. Failure to meet the margin call can result in forced liquidation of the trader's position.

Example

Suppose you are trading a quarterly KuCoin Bitcoin contract. The settlement time for this contract is on the last Friday of June at 8:00 AM UTC. If you live in New York, which is in the Eastern Time (ET) zone, the settlement time would be 2:00 AM ET on Saturday.

Conclusion

Understanding the settlement time of KuCoin contracts is essential for navigating the cryptocurrency derivatives market effectively. By adhering to the specified settlement times, traders can manage their risk exposure, realize their profits, and avoid potential margin calls.