- BitMEX’s Equity Perps allows traders to access US stocks and indices at any time.
- Traders can buy and sell US stocks, using cryptocurrencies like BTC or USDT as collateral.
- The product eliminates the barriers of traditional stock market trading.
BitMEX, a leading cryptocurrency derivatives exchange, is expanding its product offerings to address the growing demand for 24/7 US stocks trading. The platform has launched Equity Perps, a revolutionary product that allows traders to gain exposure to US stocks and equity indices using digital assets as collateral.
This move marks a significant milestone for BitMEX, which has traditionally focused on crypto-native markets. With this expansion, the exchange is poised to disrupt the traditional trading norms of Wall Street.
BitMEX’s Equity Perps Bring Wall Street to Crypto Traders
Via an official post, BitMEX announced the launch of Equity Perps, introducing Wall Street to crypto traders. The new service offers 24/7 trading of US stocks and indices with cryptocurrency as collateral. Stephan Lutz, CEO of BitMEX, noted,
“Equity Perps give traders a more flexible way to access U.S. equity markets using crypto. By removing traditional market hours and allowing crypto collateral, we are extending our derivatives expertise to a broader set of global markets while maintaining the reliability and performance BitMEX is known for.”
Significantly, this innovative product allows traders to gain exposure to major US stocks and equity indices, such as Apple, Tesla, and the S&P 500, without being limited by traditional market hours. It allows traders to buy and sell US stock market benchmarks 24 hours a day, 7 days a week, even when the US stock markets are closed. This means that traders can react to market-moving events and adjust their positions at any time.
In addition, the use of cryptocurrency as collateral eliminates the need for traditional brokerage accounts and allows traders to leverage their digital assets to participate in the global financial market. This development is particularly significant for traders in regions with limited access to traditional stocks and financial markets.
What are Equity Perps?
Equity Perps are a type of perpetual swap contract offered by BitMEX that allows traders to gain exposure to individual US stocks at any time. These contracts track the price of the underlying asset and use a funding rate mechanism to keep prices aligned with the market. Traders can take long or short positions with leverage of up to 20x, using cryptocurrencies like Bitcoin or Tether as collateral.
Key features include:
- No Expiry Date: As Equity Perps are perpetual contracts, they don’t have a fixed expiration date.
- Leverage Choice: Traders can take positions with leverage of up to 20x.
- Crypto as Collateral: Equity Perps allows traders to use cryptocurrencies like BTC and USDT as collateral.
- Any time trading: The product eliminates the limitations of timing, as it allows traders to buy and sell US stocks at any time (24/7).
Explaining the Mechanics
BitMEX’s Equity Perps offer 24-7 trading of US stocks and indices with crypto as collateral. This provides traders with flexibility and more opportunities. The product is designed for both existing crypto derivatives users and retail traders lacking access to US equities or living outside Wall Street hours.
The product uses a funding rate mechanism to keep prices aligned with the underlying reference index, with funding exchanged every eight hours. If corporate actions, like stock splits, occur, affected contracts will be settled early and relisted once the action is complete.
