What time does the Upbit contract settle?

Upbit's futures contracts settle at 8:00 AM UTC, determining traders' profits or losses, margin requirements, and market liquidity.

Nov 20, 2024 at 06:10 am

What Time Does the Upbit Contract Settle?

Upbit is a South Korean cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and futures trading. Futures contracts are financial instruments that allow traders to speculate on the future price of an asset. Upbit's futures contracts settle at a specific time each day.

Settlement Time

Upbit's futures contracts settle at 8:00 AM UTC. This means that all open positions in futures contracts will be closed at this time, and the final settlement price will be determined. The settlement price is the average price of the asset over the last 30 minutes before the settlement time.

Why Does Settlement Time Matter?

Settlement time is important for several reasons:

• It determines when traders will receive their profits or losses from their futures trades.
• It affects the margin requirements for futures trades. Margin requirements are the amount of collateral that traders must post in order to open a futures position.
• It can impact the overall liquidity of the futures market.

How to Calculate Settlement Price

The settlement price for Upbit's futures contracts is calculated using the following formula:

Settlement Price = (Sum of all trades executed in the last 30 minutes before settlement) / (Total number of trades executed in the last 30 minutes before settlement)

Example

Suppose that in the 30 minutes before the settlement time for a particular futures contract, the following trades are executed:

• 100 contracts at $10
• 50 contracts at $10.50
• 25 contracts at $11

The settlement price would be calculated as follows:

Settlement Price = (100 * $10 + 50 * $10.50 + 25 * $11) / (100 + 50 + 25)
= $10.25

This means that all open positions in this futures contract would be settled at a price of $10.25.

Other Considerations

In addition to the settlement time, there are a few other considerations that traders should be aware of when trading futures contracts on Upbit:

• Expiration Date: Each futures contract has an expiration date. This is the date on which the contract will expire and all open positions will be closed.
• Leverage: Upbit offers leverage of up to 100x on its futures contracts. This means that traders can trade with up to 100 times their account balance. However, it is important to note that leverage can magnify both profits and losses.
• Trading Fees: Upbit charges a trading fee of 0.05% on all futures trades. This fee is deducted from the trader's account when the trade is executed.

By understanding the settlement time and other considerations for futures trading on Upbit, traders can make informed decisions about when to enter and exit trades.