{"id":37393,"date":"2021-05-26T17:13:45","date_gmt":"2021-05-26T14:13:45","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37393"},"modified":"2025-08-29T16:20:21","modified_gmt":"2025-08-29T13:20:21","slug":"move-contracts-on-ftx-what-they-are-and-how-to-profit","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/move-contracts-on-ftx-what-they-are-and-how-to-profit\/","title":{"rendered":"MOVE contracts on FTX: what they are and how to profit"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What are MOVE contracts?<\/h2>\n<p>MOVE are futures contracts on the <a href=\"https:\/\/ftx.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">FTX<\/a> exchange. A MOVE\u2019s price reflects the absolute change in the underlying asset\u2019s price from the moment the contract is launched.<\/p>\n<p>MOVE contract specifications include:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>underlying asset<\/strong> \u2014 the asset whose price determines the contract price, in this case bitcoin;<\/li>\n<li><strong>expiry time<\/strong> \u2014 the date and time when the exchange will close the contract and all positions in it;<\/li>\n<li><strong>strike<\/strong> \u2014 the price at which the exchange fixes the contract.<\/li>\n<\/ul>\n<p>FTX sets the strike for MOVE contracts at 00:00 (UTC) or 03:00 Moscow time.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How do MOVE contracts on FTX work?<\/h2>\n<p>The contract\u2019s value rises as the spread widens between the current price of the bitcoin perpetual future (<a href=\"https:\/\/ftx.com\/trade\/BTC-PERP\" target=\"_blank\" rel=\"noreferrer noopener\">BTC-Perp<\/a>) and its price at the time the MOVE started and the strike was fixed. When that spread narrows, the MOVE price falls.<\/p>\n<p><strong>Example:<\/strong> When a daily contract launched, the bitcoin perpetual was priced at $55,000. The MOVE price will:<\/p>\n<ul class=\"wp-block-list\">\n<li>increase by $1,000 if bitcoin reaches $56,000;<\/li>\n<li>increase by $1,000 if bitcoin falls to $54,000;<\/li>\n<li>drop to $0 if bitcoin trades at $55,000.<\/li>\n<\/ul>\n<p><strong>Second example:<\/strong> On May 19, bitcoin fell from $43,000 to $30,000. Over the same period, the weekly MOVE rose from $7,000 to $18,000:<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-457-1024x576.png\" alt=\"What are MOVE contracts on FTX and how to profit?\" class=\"wp-image-136800\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/1-457-1024x576.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/1-457-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/1-457-768x432.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/1-457-1536x864.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/1-457.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Top: the weekly MOVE; bottom: the BTC-PERP perpetual future.<\/figcaption><\/figure>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Why do MOVE contracts rally when bitcoin falls?<\/h2>\n<p>MOVE replicate the options straddle strategy. When buying a contract, a trader effectively gets both a put and a call option with the same strike. The upside from owning the put and call is theoretically unlimited, while the maximum loss equals the options\u2019 cost at purchase.<\/p>\n<p>If bitcoin\u2019s price moves, profit on one option offsets the loss on the other. The trader\u2019s profit depends on the absolute difference between the strike and bitcoin\u2019s price at expiry.<\/p>\n<p>If at expiry bitcoin trades at the strike, the trader incurs losses.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"780\" height=\"410\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-414.png\" alt=\"What are MOVE contracts on FTX and how to profit?\" class=\"wp-image-136801\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/2-414.png 780w, https:\/\/forklog.com\/wp-content\/uploads\/2-414-300x158.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/2-414-768x404.png 768w\" sizes=\"auto, (max-width: 780px) 100vw, 780px\" \/><figcaption>Example of a straddle. The trader bought bitcoin put and call options with a $54,000 strike. The cost of one contract is $1,000. If bitcoin falls to $50,000, the trader gains $4,000 on the put and loses $1,000 on the call.<br \/><\/figcaption><\/figure>\n<p>Thanks to the limited maximum loss and the combination of options, a MOVE contract\u2019s price can rise even during bitcoin sell-offs.<\/p>\n<p><strong>Example:<\/strong> Bitcoin trades at $56,000. You buy a daily MOVE with a $56,000 strike. The MOVE price will:<\/p>\n<ul class=\"wp-block-list\">\n<li>rise by $4,000 if bitcoin falls to $52,000;<\/li>\n<li>rise by $4,000 if bitcoin reaches $60,000;<\/li>\n<li>fall to $0 if bitcoin remains at $56,000.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What types of MOVE contracts are on FTX?<\/h2>\n<p><a href=\"https:\/\/ftx.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">FTX<\/a> lists daily, weekly and quarterly bitcoin MOVE contracts.<\/p>\n<p>The tickers show the type and expiry date:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>BTC-MOVE-MMDD<\/strong> \u2014 a daily contract where MM is the month and DD the day. BTC-MOVE-0512 expires on May 12;<\/li>\n<li><strong>BTC-MOVE-WK-MMDD<\/strong> \u2014 a weekly contract where MM is the month and DD the day. BTC-MOVE-WK-0521 expires on May 21;<\/li>\n<li><strong>BTC-MOVE-YYYYQQ<\/strong> \u2014 a quarterly contract where YYYY is the year and QQ the quarter. BTC-MOVE-2021Q4 expires at the end of Q4 2021.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How are MOVE contracts traded?<\/h2>\n<p>The opening price of the next MOVE depends on the current contract\u2019s volatility. The higher the underlying\u2019s volatility, the more expensive the contract at the open.<\/p>\n<p>MOVE contracts trade in two phases:<\/p>\n<ol class=\"wp-block-list\">\n<li>A linear future on bitcoin\u2019s implied volatility. This phase ends when the strike is fixed.<\/li>\n<li>A future on the absolute price range. This phase ends at contract expiry.<\/li>\n<\/ol>\n<p><strong>Example with the daily BTC-MOVE-0526:<\/strong><\/p>\n<ol class=\"wp-block-list\">\n<li>From May 25 to May 26 the contract trades as a linear future.<\/li>\n<li>From May 26 to 00:00 (UTC) on May 27 the contract trades like a straddle.<\/li>\n<\/ol>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What are the trading terms for MOVE?<\/h2>\n<p>A BTC-MOVE contract equals the price of one bitcoin. The minimum position size is 0.01% of the current MOVE price.<\/p>\n<p>You can use market, limit and stop orders with leverage up to 100x. Margin works the same way as for the BTC-PERP perpetual future.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"577\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/3-249-1024x577.png\" alt=\"What are MOVE contracts on FTX and how to profit?\" class=\"wp-image-136802\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/3-249-1024x577.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/3-249-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/3-249-768x433.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/3-249-1536x866.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/3-249.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>The trading interface for MOVE contracts on <a href=\"https:\/\/ftx.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">FTX<\/a>. On the right are data on the contract and the user\u2019s account status.<\/figcaption><\/figure>\n<p>MOVE trading fees range from 0.07% to 0.04% depending on the user\u2019s monthly volume. Holding and staking FTT reduces the taker fee to 0.015%.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How to profit from MOVE contracts?<\/h2>\n<p>When bitcoin moves away from the strike, the MOVE price rises. When bitcoin returns to the strike, the MOVE price falls.<\/p>\n<p><strong>Example of profit from buying:<\/strong> a daily MOVE costs $2,500. The strike is $55,000 and bitcoin trades at $55,000. You buy one MOVE. By expiry, bitcoin falls to $54,000 and the MOVE price rises to $3,600. Your profit is $1,000.<\/p>\n<p><strong>Example of profit from selling:<\/strong> a daily MOVE costs $2,000. The strike is $54,000 and bitcoin trades at $54,000. Bitcoin rises to $55,000 and the MOVE price to $3,000. You sell one MOVE. Later bitcoin falls to $54,500 and the MOVE price declines to $2,500. Your profit is $500.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What are the risks when trading MOVE?<\/h2>\n<p>When buying MOVE, the maximum loss is limited to the contract\u2019s cost. In the worst case the trader loses the amount paid for MOVE. <a href=\"https:\/\/ftx.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">FTX<\/a> does not liquidate a long position if the trader\u2019s collateral exceeds the cost of the purchased contracts.<\/p>\n<p>When selling MOVE, the maximum loss is unlimited. FTX may liquidate a short position if margin is insufficient.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>MOVE are futures contracts on the FTX exchange. A MOVE\u2019s price reflects the absolute change in the underlying asset\u2019s price from the start of the contract.<\/p>\n","protected":false},"author":1,"featured_media":37394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"2","news_style_id":"1","cryptorium_level":"3","_short_excerpt_text":"MOVE contracts on FTX track bitcoin\u2019s absolute price change from the strike.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[2113],"tags":[2118,1168,1236],"class_list":["post-37393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptorium","tag-101-trading-and-investing","tag-crypto-derivatives","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"100","promo_type":"2","layout_type":"1","short_excerpt":"MOVE contracts on FTX track bitcoin\u2019s absolute price change from the strike.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=37393"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37393\/revisions"}],"predecessor-version":[{"id":37395,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37393\/revisions\/37395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/37394"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=37393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=37393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=37393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}