LTC Perpetual Contracts Introduction in ETH Trading Area

LTC

Litecoin, otherwise also known as ‘digital silver’ was established on 9 November 2011. LTC has similar technological implementation as BTC, and is the first digital currency to be based on the Scrypt algorithm. Compared to BTC, LTC has a faster transaction confirmation time, higher network capacity and efficiency. LTC now has a complete industrial chain and sufficient liquidity to prove its legitimacy as a mature, safe and stable system. 

LTC contracts: LTC as underlying asset, USD as reference currency and ETH as settlement currency, where 1 Lot = Latest LTC price /1000 number of ETH (1000 is used purely as a ETH trading unit and have no relation to actual exchange rates). 10x, 20x or 50x leverage trading available.

LTC Perpetual Contracts example: 

If the current price of LTC is quoted at 30USD, and trader would like to short the market (i.e expecting prices to fall) with 1000 Lots:

Amount = Market price /Trading unit * number of Lots = 30/1000 * 1000 = 30ETH

If trader chose to trade with 10x leverage:

Margin used = Transaction amount / Leverage = 30/10 = 3ETH, using only 3ETH to trade 1000 Lots of LTC contracts.

If prices fall to 20USD and trader closes positions, profit is calculated per below:

Profit = (Opening price – Selling price)/Trading unit * positions sold = (30-20) /1000 * 1000 = 10ETH