# long $CRT contract

## example 

Let’s assume ETH is currently trading for $1,700. A trader would like to gain LONG exposure. Unlike call options that are often very difficult to digest and understand to the average trades, we prefer synthetic derivatives instead like using <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token over the options contracts or even perpetual swaps.

Our <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Synthetic Exchange allows cryptocurrency traders to initiate this contract through our <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token Module that is used for placing <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token 'BETS". We are calling these synthetic wagers "BETS" because the user will have to *wager* on the future value of the crypto reference rate (**price**) and specify a period of time of the smart contract (**duration**) execution.

## ETH long from $1,700 to $1,820.

You would like to buy 1 ETH, which is currently trading at $1,700. You could buy 1 ETH and invest $1,700 worth of Bitcoin $27,000 / (100,000,000 Satoshi) to purchase $ETH tokens.&#x20;

Or, you could initiate a **crtETH** long contract, and chose settlement price of 1,820 instead. Let us assume the user expects for some reason, technical analysis or momentum trade analysis, that a price of Ether will appreciate in 3 days, they might simply wager <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> in the amount of $120 (Settlement minus Price) and gain the exactly same exposure as purchasing the underlying crypto outright conventional crypto exchange

By purchasing the **crtETH** 'long' contract you are saying that by expiration, the Users anticipate ETH to have risen above the break-even point: **$1,820** **Strike.** Price that is higher than the current **Spot $1,700** must be covered with <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> collateral that we is available in your wallet.

Unlike with option series contracts, the The profit potential with <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token is always limited to the the price range selected between Spot & Settlement. The Risk involved also is directly tied to the settlement price, and duration of the contract, and as a function of price volatility.

<mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Tokens are extremely powerful because they are standardized synthetic contracts "1 for all - all for 1", for all cryptocurrencies covered in our market universe. You will be able to stake claims on future price movements of crypto, using <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token as a collateral. We support both Long and Short contract series, and bespoke duration of the contracts' maturity.