What is a Perpetual Contract?
A perpetual contract is a derivative product with no fixed maturity date. It is settled using a periodic funding rate (typically every 8 hours) to maintain a high correlation between the contract price and the index price of underlying assets like BTC and ETH.
Perpetual contracts allow for two-sided trading. Investors can go long to capitalize on the upside or short to profit from the downside. The profit or loss is calculated based on the price difference between the opening and closing positions, adjusted by the leverage used. Unlike traditional futures contracts, perpetual contracts have no delivery cycles, which means the holding period is indefinite. This eliminates the need to reposition frequently and avoids the risk of forced liquidation due to contract maturity.
CoinEx offers both USDS-Margined Contract and Coin-Margined Contract as derivatives in futures trading. USDS-Margined Contract are priced, settled, and margined in USDT or other stablecoins, while Coin-Margined Contract are priced in USD but settled and margined in the underlying cryptocurrency.
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Differences Between Perpetual Contract and Traditional Futures Contract >>
Differences Between Futures Trading and Spot Trading >>
Introduction to USDⓈ-Margined Contract and Coin-Margined Contract >>
How to trade in the Futures Market?
Futures trading supports both long and short positions.
For example, if you predict that the price of BTC will rise, you can buy BTC at a low price in the BTCUSDT market and sell it for a profit when the price increases. Here are the specific steps (for illustration purposes):
1. Pre-Trade Setup
Click [USDⓈ-margined contract] and choose the BTCUSDT trading pair. Click the "Transfer" button, set the transfer direction (from [Spot] to [Futures]), confirm the coin type, enter the amount, then click [Confirm].
2. Open a BTC long position
Using a limit order as an example, set the [Price] and [Amount], then click [Buy/Long] to submit the order.
Note: You can also click on [TP/SL] to set Take-Profit and Stop-Loss prices when opening a position. After opening a position, the Take-Profit and Stop-Loss orders will be set automatically.
3. Sell BTC to close the long position when the price rises to the expected level
(1) Option 1: Close position in the order panel
Using a limit order as an example, set the [Price] and [Amount], then click [Sell/Short] to submit the order. Your position will be closed when the order is filled.
Note: Ensure the order size does not exceed your current position when placing a sell order. If the order size exceeds your position, a new opposite position will be initiated upon execution.
(2) Option 2: Close the position via [Current Position]
Using a limit order as an example, click [Close] in [Current Position] and switch to [Limit], set the [Price] and [Amount], then click [Confirm] to submit the order. Your position will be closed when the order is filled.
(3) Option 3: Use [Liquidate] or [TP/SL] to close the position
In the bottom right corner of the page, select "Liquidate" or "TP/SL" to close a position.
Note:
- The “Liquidate” feature does not support partial position closing.
- When [Liquidate] or [TP/SL] is applied, the system will use an Auction-style Liquidation Strategy to close the position. For more details, please refer to Introduction to Auction-Style Liquidation Strategy and Introduction to Futures Take-Profit and Stop-Loss (TP/SL).
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A Beginner's Guide to CoinEx Futures Trading >>