Crypto Contract Trading
on MERCADE
MERCADE lists Contract as one of its core products. Contract trading is different from buying cryptocurrency on a spot market: you open a position under a contract's rules instead of making a direct spot purchase of the underlying asset.
How Does Crypto Contract Trading Work?
A crypto contract is linked to the price of an underlying digital asset. The value of your position changes as the relevant market price moves. The contract determines how the position is opened, maintained and closed.
Not every crypto contract works the same way. Expiry, settlement, margin requirements and trading costs depend on the specific product. These details matter more than the name of the asset alone.
Terms to Check in a Contract Market
Underlying Asset and Position Size
Identify the asset whose price the contract follows and the size of the position you are opening. A small change in the underlying price can have a larger effect on a larger position.
Margin and Leverage
Some contracts use margin or leverage. Where leverage applies, it increases exposure relative to the funds committed and can magnify losses as well as gains. The contract specifications determine the applicable requirements.
Costs and Closeout Rules
Review trading charges, any ongoing or settlement costs, and the conditions under which a position can be closed. If the product uses margin, its liquidation rules are part of the contract—not an optional detail.
Contract Trading Versus Spot Trading
Use a spot market when the transaction you want is an exchange of cryptocurrencies. A contract is a different instrument for taking a position on price movement. Our spot vs contract trading comparison sets out the differences in one place.
Frequently Asked Questions
Do I own the cryptocurrency when I trade a contract?
A contract position is not the same as a spot purchase of the underlying cryptocurrency. The rights and obligations depend on the specific contract.
Are all crypto contracts leveraged?
No. Contract structures vary. Check the specifications of the particular market to see whether margin or leverage applies.
Where can I explore MERCADE contracts?
Use MERCADE's Contract entry point to see the markets currently available on its trading platform.
Explore contract trading on MERCADE
Review the terms of each available contract.