Market Taxonomy
This document defines the terminology used to describe markets, products, and contracts on Bitnomial Exchange.
Core Concepts
Product
A product is what a contract's value derives from. Products fall into two categories:
Assets - Things with value that can be owned or measured:
- Digital assets: Bitcoin, Ethereum, XRP, Solana
- Commodities: Gold, Oil, Electricity
- Rates: Interest rates, Hashrate
- etc.
Events - Outcomes that resolve to a discrete result:
- Election outcomes
- Bitcoin price above $100k on date X
- Economic indicators
The term underlying is synonymous with product.
Contract Type
The contract type defines the structure and mechanics of a derivative:
| Type | Description |
|---|---|
| Futures | Agreement to buy/sell at a future date |
| Perpetuals | Perpetually settled to spot price (no roll required) |
| Options | Right (not obligation) to buy/sell |
| Spot | Immediate settlement |
| Prediction | Binary or discrete outcome based on event |
Series
A series is a contract definition with variables (like expiry or strike) not yet specified:
- Product + contract type + size
- Example: "Bitcoin US Dollar Myra Future" is a series
Contract
A contract is a fully defined tradeable instrument where all variables are set:
| Variable | Description | Applies To |
|---|---|---|
| Expiry | Settlement/delivery date | Futures, Options |
| Strike | Exercise price | Options |
Examples:
- "Bitcoin US Dollar Myra Future - January 2025" is a contract (series + expiry)
- "Bitcoin US Dollar Myra Option 100000 Call - January 2025" is a contract (series + strike + expiry)
Exchange vs Market
The exchange (Bitnomial Exchange) is the venue where markets are traded.
Markets are traded on the exchange. Markets can be grouped by:
| Grouping | Examples |
|---|---|
| By product | Bitcoin markets, XRP markets, Election markets |
| By contract type | Futures markets, Options markets, Prediction markets |
Note: "Spot market" can refer to either Bitnomial's spot markets or third-party reference markets for price discovery.
Taxonomy Hierarchy
Bitnomial Exchange (the venue)
│
└── Markets (traded on the exchange)
│
├── By Product (what drives value)
│ │
│ ├── Assets
│ │ ├── Bitcoin markets
│ │ ├── Ethereum markets
│ │ ├── XRP markets
│ │ └── ...
│ │
│ └── Events
│ ├── Election markets
│ ├── Economic indicator markets
│ └── ...
│
└── By Contract Type (how it's structured)
├── Futures markets
├── Perpetuals markets
├── Options markets
├── Spot markets
└── Prediction markets
Product Complexes
Bitnomial groups related contracts into complexes by product:
Bitcoin Complex
All Bitcoin-derived contracts across contract types:
- Bitcoin Futures (various sizes)
- Bitcoin Perpetuals
- Bitcoin Options
- Hashrate Futures
Crypto Complex
Multi-product suite of cryptocurrency contracts:
- XRP Futures
- Solana Futures
- Ethereum Futures
- Cardano Futures
- etc.
Summary Table
| Term | Definition | Example |
|---|---|---|
| Product | What a contract's value derives from (asset or event) | Bitcoin, Election outcome |
| Asset | A type of product (things with value) | Bitcoin, Gold, Hashrate |
| Event | A type of product (discrete outcomes) | "BTC > $100k on Jan 1" |
| Contract Type | Structure of the derivative | Futures, Options, Perpetuals, Spot, Prediction |
| Series | Contract with variables not yet set | Bitcoin Myra Future |
| Contract | Fully defined tradeable instance | Bitcoin Myra Future Jan 2025 |
| Market | Grouping by product or contract type | "Bitcoin markets", "Futures markets" |
| Complex | Suite of contracts for a product | Bitcoin Complex |
| Exchange | The venue where markets are traded | Bitnomial Exchange |
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Signing up with Bitnomial, Inc. requires additional verification with an FCM to trade futures. Futures accounts are offered by Bitnomial Clearing, LLC, a CFTC-registered FCM and NFA member. 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. See Bitnomial entity affiliation and registration disclosures and FCM financial and risk disclosures.