Inverse Litecoin futures will start trading on Crypto Facilities, a crypto trading platform based in the United Kingdom, at 4:00 p.m. on June 22, 2018. This financial product is denominated in US dollars, and it will enable traders to pick long or short positions in the cryptocurrency.
Currently, Litecoin ranks sixth in terms of market capitalization ($5.5 billion). There are nearly 57 million coins circulating supply with a 24-hour global trading volume worth a little more than $360million. It has a hard cap of 84 million, which is four times more than what bitcoin has.
When it comes to the Litecoin markets, the LTC/BTC pair is the most traded, followed by the Tether trading pair. OKEx currently has the biggest trading volume, with its LTC/BTC and LTC/USDT accounting for 23 percent of the total Litecoin trading volume.
According to the Crypto Facilities website, the reference rate for inverse LTC futures will not be made immediately available, but there will be three developments up for trading: weekly, monthly, and quarterly. All contracts will expire on Fridays (or on the last Friday of the relevant month) except for holidays.
The maximum leverage offered by the exchange is of 50x on any of its cryptocurrency futures. It appears that the leverage limits imposed by the European Securities and Markets Authority applied only to contracts with differences and binary options, thus excluding cryptocurrency futures.
It remains to be seen if the Litecoin cash markets respond to LTC futures, especially since bitcoin is closely linked to LTC’s trading volume. Even though bitcoin futures were seen responsible bitcoin’s price plunge, it is yet unknown if something of the sort would occur to Litecoin.