CoinEx Inverse Futures Contracts Trading Rules

 

An Introduction to Inverse Futures Contracts

The Inverse Futures Contract also called Coin-M Future Contract, that allows you to long buy or short sell crypto and earn profits based on the price prediction. It is similar to a traditional Futures Contract, but it does not have an expiry or settlement date, and you can choose to close or keep the position according to the market conditions.

The Comparison of Linear Futures Contracts and Inverse Futures Contracts

Type Linear Futures Contracts Inverse Futures Contracts
Margin Pricing Coin(USDT) Trading Coin(BTC, etc.)
Settlement Date - -
Contract Loss Mechanism Auto-Deleveraging(ADL), Insurance Fund Auto-Deleveraging(ADL), Insurance Fund
Liquidation Price Reasonable Price Index Reasonable Price Index
Price Balance Mechanism Funding Rate Funding Rate

 

Contract Mechanisms

Fair PriceInverse Contract adopts Fair Price Marking that determines the unrealized profit or loss and liquidation of the position.

Initial MarginThe minimum amount of margin for position open.

Maintenance MarginThe minimum amount of margin is required to keep your position open. The requirements of maintenance margin are tied to the Risk Limits.

Funding Rate: A mechanism to ensure that the Futures market price is close to the Spot market price. Periodic payments are exchanged between the buyer and seller every 8 hours, that is, when the rate is positive, then longs will pay and the shorts will receive the rate, and vice versa when the rate is negative. Meanwhile, this rule only applies to positions open at the funding timestamps 24:00, 08:00, and 16:00 (UTC).

Contract LeverageCoinEx futures contract employs several adjustable leverages ranging from 3X to 100X.

Cross MarginThe full amount of funds in the available balance will be utilized as margin on your position. When the initial margin is less than the maintenance margin, any available balance will be used to add margin to your position.

Isolated MarginAny of your available balance will not be used to increase the margin when a position is liquidated. By isolating and using different margin for each position, you can limit losses on that position to the initial margin amount when your short-term speculative trading strategy fails.

Liquidation MechanismPartial liquidation, insurance funding, and auto-deleveraging are adopted in the case of forced liquidation.

 

Trading Rules

Trading Hours24/7 Round the clock, no limitation on the settlement date.

Order TypeShort Sell, Long Buy, Long Sell Close, and Short Close.

PositionOnly one position is available for one contract market at the same time: Assuming you have successfully opened a short position, you cannot open a long position simultaneously. Any long position will reduce your current short position. On one hand, your current short positions will become long position when the number of long contracts exceed the short position. On the other hand, your current short positions will increase when you sell short. In this case, you can’t long and short the same contract.

 

Position/Order Limit

BTCUSD

Contract BTCUSD
Trading Unit * Cont
Contract Value 1 USD
Quote Currency USD
Settlement Coin BTC
Minimum Order Amount 10 Cont
Index Price
(Average of the prices in Spot Market)
Kraken 25%
Bitstamp 25%
Coinbase 25%
Gemini 25%
Position Level(Cont) Maintenance Margin Rate Minimum Initial Margin Rate Maximum Leverages
0-500000 Cont 0.50% 1.00% 100
500001-1000000 Cont 1.00% 2.00% 50
1000001-2000000 Cont 1.50% 3.33% 30
2000001-5000000 Cont 2.00% 5.00% 20
5000001-10000000 Cont 2.50% 6.66% 15
10000001-20000000 Cont 3.00% 10.00% 10

 

ETHUSD

Contract ETHUSD
Trading Unit * Cont
Contract Value 1 USD
Quote Currency USD
Settlement Coin ETH
Minimum Order Amount 10 Cont
Index Price
(Average of the prices in Spot Market)
Kraken 25%
Bitstamp 25%
Coinbase 25%
Gemini 25%
Position Level(Cont) Maintenance Margin Rate Minimum Initial Margin Rate Maximum Leverages
0-500000 Cont 0.50% 1.00% 100
500001-1000000 Cont 1.00% 2.00% 50
1000001-2000000 Cont 1.50% 3.33% 30
2000001-5000000 Cont 2.00% 5.00% 20
5000001-10000000 Cont 2.50% 6.66% 15
10000001-20000000 Cont 3.00% 10.00% 10