Hi It's Unicorn
In this post, I will briefly explain “Quanto Swap”, which can only be traded on BitGet futures, and show you how to use it!
What is Quanto Swap?
1. It is a derivative product that trades with a coin as collateral.
2. You can use margin from multiple coins to trade multiple trading pairs. Any single coin can be used as a margin for multiple trading pairs at the same time, saving the exchange cost between cryptocurrency.
3. For instance, you can trade a BTC/USD pair with ETH as a margin, and profit and loss will be calculated in ETH; or you can trade an ETH/USD pair with BTC as a margin and profit and loss will be calculated in BTC.
Quanto Swap pros.
1. If you use Quanto Swap on Bitget, you don’t need to exchange your coins before trading other coins! It avoids the cumbersome coin-to-coin exchange process and saves the exchange cost and allows users to maximize the margin.
2. Both profits and losses from trading will be settled with the coins held as collateral.
3. The method of settlement is coin profit / current price of collateral coin = profit or loss amount of coins. The profit is from the rise of coin used in margin. For instance, You trade an ETH/USD pair with BTC as a margin. If the BTC rises, you benefit from both the profit earned in trading ETH and price increased in BTC.
Quanto Swap cons.
1. Trading volume may be insufficient as it is not a widely known product yet.
2. Currently, BitGet only supports Bitcoin, Ethereum and Ripple.
3. The value of the collateral fluctuates because the collateral is held by another coin.
4. You can make double profits in a bull market, but you can lose money in a bear market.
Source : Bitget blog