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+1 (908) 273-8252

Instruments

Instruments

TeraExchange launched the first U.S. regulated trading platform for bitcoin forward contracts. By offering a bitcoin derivative product with regulatory structure and controls, TeraExchange created an opportunity for institutional investors to confidently participate in the bitcoin marketplace.

The Transaction

Our TeraExchange bitcoin forward is a short-term, U.S. Dollar settled forward. On the contracted settlement date, the profit or loss is adjusted between the two counterparties based on the difference between the contracted rate entered into on trade date and the prevailing Tera Bitcoin Price Index at the time of settlement.

The details of the product include:

♦ notional amount: This is the “face value” of the contract, which is agreed between the two counterparties.

♦ valuation date: This is the day and time whereby the comparison between the price the bitcoin forward entered into on trade date and the prevailing Tera Bitcoin Price Index is calculated

♦ settlement date (or delivery date): This is the day when the difference is paid or received. It is usually two business days after the valuation date

♦ bitcoin forward price: The U.S. Dollar price agreed on the transaction date

♦ valuation price: The price on the valuation date at 3:00pm New York time of the Tera Bitcoin Price Index as broadcast by TeraExchange

The notional amount is never exchanged. The only exchange of cash is the difference between the bitcoin forward price at trade date and the prevailing 3:00 p.m. broadcast price of the Tera Bitcoin Price Index on the valuation date.

Please call (908)273-8200 or email sales@teraexchange.com for more detailed information regarding the transaction.

Bitcoin Market Structure Explained

The Bitcoin forward marketplace has two discrete methods of execution. The first is an anonymously displayed Order Book. As a supplement to the Order Book market participants may use a Request For Quote (RFQ) application.

Please reference our Liquidity Provider Guidelines for information on Market Making and feel free to email us at sales@teraexchange.com or call (908)273-8200 for more information.

The custodial accounts are always in the name of the market participants and must be funded before any market participants can trade. The Daily Notional Trading Limit for each market participant is determined every morning based on the balance in the custody account(s). The Daily Notional Trading Limit will be provided to each market participant before the market opens for trading.

Bitcoin Forwards

Overnight - NDF-O/NUSDXBT-OTC3 Week - NDF-03WUSDXBT-OTC
2 Day - NDF-02DUSDXBT-OTC
3 Day - NDF-03DUSDXBT-OTC1 Month - NDF-01MUSDXBT-OTC
4 Day - NDF-04DUSDXBT-OTC2 Month - NDF-02MUSDXBT-OTC
5 Day - NDF-05DUSDXBT-OTC3 Month - NDF-03MUSDXBT-OTC
6 Day - NDF-06DUSDXBT-OTC4 Month - NDF-04MUSDXBT-OTC
7 Day - NDF-07DUSDXBT-OTC5 Month - NDF-05MUSDXBT-OTC
8 Day - NDF-08DUSDXBT-OTC6 Month - NDF-06MUSDXBT-OTC
9 Day - NDF-09DUSDXBT-OTC9 Month - NDF-09MUSDXBT-OTC
10 Day - NDF-10DUSDXBT-OTC
1 Year - NDF-01YUSDXBT-OTC
2 Year - NDF-02YUSDXBT-OTC

Non-Deliverable Forwards

CME Cleared Non-Deliverable Forwards

Equity Derivatives

Equity Index Swaps