Bitget Launches World’s First Quanto Swap Contract

3 min readJun 30, 2021

The concept of the Quanto Swap Contract is relatively new in the crypto ecosystem. It is capable of solving problems faced by traditional derivatives such as USDT paired contracts and inverse contracts in the costs, trading experience, and capital utilization experienced during the trading process.

In simple terms, the Quanto Swap Contract supports several digital currencies as a margin for transactions, including cross-currency. It helps to improve the operational efficiency of the trader by shortening the digital currency exchange process and reducing transaction fees.

What is Bitget’s Quanto Swap Contract?

Bitget’s Quanto Swap Contract is a new innovative contract supporting multiple currencies as a margin for multiple contract trading pairs. This new contract is developed to change the conventional reading method to provide users with more trading options, optimize funds utilization, and earn trading interests and gains from the price rise.

Perpetual Quanto Swap Contract does not have an expiration or settlement date. Instead, users choose the currency that the platform offers as the margin and calculate the return according to that currency. The spot price of the contract is anchored utilizing funding rate swaps.

Bitget supports a variety of pairs for major cryptocurrencies such as:

For BTC: BTC/USD, ETH/USD, EOS/USD
For ETH: BTC/USD, ETH/USD, EOS/USD
For EOS: EOS/USD

To understand the concept better, consider using ETH as a margin to trade BTC/USD, ETH/USD, EOS/USD. The profit and the loss of the trade will be settled in ETH as it was used to hold the margin. Using this process, the Quanto Swap Contract simplifies the exchange process and eliminates the need to exchange cryptocurrencies to preferred currency, thus reducing transaction costs.

Benefits of Bitget’s Quanto Swap Contract

Bitget’s Quanto Swap Contract is designed to promote user-friendliness while aptly optimizing the transaction process. It keeps the traditional and important features of an Inverse contract intact and adds margins such as BTC to support cross-currency trading. Users can choose the margin currency for themselves and effectively eliminate the cumbersome process of converting and its transaction fees.

The new Quanto Swap Contract also maximizes the margin by using real-time exchange rates for calculation without staking and interest fees. Bitget currently supports BTC, ETH, XRP, EOS, and a few stable currencies to be used as margins for multi-contract trading pair transactions. This feature will allow traders to operate with more flexibility and use the best trading strategies determined by real-time market conditions.

Leverage and Risk Management

To avoid market manipulation, Bitget uses marked prices to enable forced liquidation. The company measures risk and leverage according to the trader’s total position risk in a certain margin currency.

Fund Fee

Bitget uses a fund fee to ensure that the transaction price of the swap will attain the underlying reference price by the regular exchange of funds between short and long parties.

How to Trade Quanto Swap Contract

Go to the trading page, log in with Bitget ID, and proceed to the Quanto Swap Contract Trading page.
Before opening a position, users have to add assets to their Quanto Swap Contract Account. It can be done using the Transfer function with no fee for internal transfers.
Next, open a position by selecting the trading pair, margin mode, order type, and leverage. Then enter the quantity and price and select the direction.

Users of Bitget can now use the Quanto Swap Contract to avail themselves of the benefits and more. Bitget has always aimed to be innovative and lead in the derivatives market. This Quanto Swap Contract will ensure that Bitget provides the best services to their community.