The main features of the perpetual swap contracts offered by Interdax are:
Interdax’s perpetual contracts do not have an expiry date, unlike futures contracts. Investors can buy or sell perpetual contracts and hold these positions for as long as they want. Unlike other perpetuals, profit and loss is updated continuously so that traders do not have to exit a trade to realise their profits. Any earnings from a trade can be used immediately to enter a new position in the underlying asset, make a transfer or can be withdrawn.
Fair Trading with a Robust Index
Interdax’s methodology for the index that values the perpetual contract is robust to market manipulation and outliers. The top five order books from the constituent exchanges are aggregated to create an index price to value the perpetual contract, where exchanges with thicker books are given more weight. The index draws bid-ask prices from seven exchanges based on API availability and if an exchange has been offline for more than 30 seconds, it is removed from index calculations.
Continuous Interest Payments
Interest payments are continuously calculated for each position multiple times per second. These payments are used as a mechanism to bring the index price in line with the price of bitcoin and ensure smoother price adjustment. Once the interest accumulated hits a certain threshold, these payments are added to the user’s balance. The continuous interest payment mechanism ensure that there are no bouts of volatility, which are commonly associated with eight-hour funding periods or expiry dates for other trading instruments.
Up to 100:1 Leverage Available
Interdax’s cryptocurrency derivatives offer traders up to 100:1 leverage. The perpetual contracts are flexible where the position size can be used to determine the leverage. Sub-accounts allow you to isolate margin trades from your main trading account. Traders can take advantage of the sub-account and continuous settlement features to adjust leverage and manage their positions in sophisticated ways.