Luxor derivatives

Exchange-Traded Hashrate Derivatives

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What is a hashrate future?

A Hashrate future is an agreement to buy or sell hashrate at a specific price until a specific date in the future. This instrument is cash-settled, meaning no hashrate changes hands, but is settled to the Hashprice Index, the value of that hashrate.

This instrument trades similarly to other commodity derivatives such as oil, electricity, wheat etc. It is cleared by a Central Counter Party (CCP).

Understanding the Market Participants

Who should trade Hashrate Futures ?

Futures offers a tool for hedging and speculating on the exciting Bitcoin mining industry.

Miners and Service Providers

Miners and providers can use Hashrate Futures to hedge future mining revenue. This reduces the volatility of earnings, reduces cost of capital, obtains higher revenue certainty, and ensures mining longevity.

Traders

Traders use Hashrate Futures to speculate on a nascent market. Hashrate, the first form of compute traded on exchange, changes value based on macro events such as blockspace demand, chip product, regulatory and others events that give traders an edge on the market and ability to generate alpha.

Market Makers

Spreads to take advantage of in an interesting asset class

How to Start Trading:

Similar to trading other commodity derivatives, you will need to onboard through an FCM that connects to the Bitnomial exchange.

Luxor Commodities LLC to help
onboard onto FCM

We will introduce you to an FCM and help through the onboarding process

Onboard onto execution platform

Luxor Commodities LLC to guide the setup of an execution platform to place trades on

Start Trading

View the open order book, understand your hedging and trading needs and place a trade

Insights into the Benefits of Futures

  • Locked-in RevenueHedge your future mining revenue
  • Capital Efficiency and LeverageTrade larger sizes and durations with smaller amounts of margin
  • Long ExposureGain exposure to Bitcoin price, transaction fees and network difficulty
  • Reduce Counterparty RiskFutures trades are guaranteed by the clearing house, reducing your counterparty exposure
  • TransparencyWith a central limit order book (CLOB) all participants get equal access to: prices, size, trades, and volume
  • Short ExposureGain exposure to Bitcoin price, transaction fees and network difficulty

Initiating the Onboarding Journey

Ready to onboard on Luxor Derivatives, fill out this form

Trading in futures involves substantial risks. You should only trade in financial products that you are familiar with and understand the associated risks, and after carefully considering whether such trading is suitable in light of your investment experience, financial position, and investment objectives. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount.

Frequently Asked Questions

Everything you need to know about Luxor's Derivatives platform

General

Disclosures

Explore our disclosure page for detailed informations.

Access Futures Disclosures