Bank of America stock perp BAC/USDT on KCEX: quick review, Friday close structure and a short bias

KCEX added a Bank of America perpetual, BAC/USDT, to its stock section this week. Here is a review and where it stands after Friday's US cash close. Data is from the KCEX contract API and live page at about 4:03 PM ET.

What Bank of America is

Bank of America is one of the largest US banks, with consumer banking, wealth management (Merrill) and a big trading desk. The perp tracks the US-listed share price through an index, has no expiry and settles in USDT, so you can trade the stock with crypto margin around the clock, including weekends when the cash market is shut.

How the perp is set up

• Max leverage 25x, contract size 0.1 BAC
• Fees 0% maker, 0.01% taker
• Funding every 8 hours, capped at +/-2%

What the tape shows

• Last 50.76, index 50.71, fair price 50.72, down 0.35% on the day
• 24h range 50.53 to 51.49
• Funding 0.0000%, so no crowding either way
• 24h turnover about 42.3K USDT, but open interest is only about 100 USDT, so almost nobody is holding size overnight
• Hourly closes sat around 51.2-51.3 for most of the day, then stepped down through the afternoon: 51.12, 50.97, 50.78, 50.84, 50.73, 50.76

My lean: short, small size

The afternoon slide made lower highs into the close, and price is sitting near the 50.53 low. A short idea targets a retest of 50.53. Invalidation: an hourly close back above 51.12, where the slide started.

What would make me wrong

The cash market is now closed until Monday. Over the weekend the index has little to follow, so the perp can drift on thin flow and then gap at Monday's open. With open interest this small, one order can move price. Limit orders, isolated margin and small size.