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 (usually every 8 hours) to closely track the index price of underlying assets like BTC or ETH.
Perpetual contracts allow for trading in both directions. Investors can go long to profit from the upside or trade 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 unlimited. This eliminates the need to reposition frequently and avoids the risk of forced liquidation due to contract maturity.
🔗 Related articles:
What are the Differences Among Spot Trading, Margin Trading and Futures Trading >>
Differences Between Perpetual Contract and Traditional Futures Contract >>
Differences Between Futures Trading and Spot Trading >>
Basic Concepts for Beginners
1. Leverage: CoinEx Futures Trading supports 1-100X leverage.
(1) Higher leverage requires less margin to open a position, but it is more risky, making liquidation more likely.
(2) Lower leverage requires more margin to open a position, but it is less risky, making liquidation less likely.
2. Position direction
(1) Long: Expecting the price to rise 📈, choose to go long (buy).
(2) Short: Expecting the price to fall 📉, choose to go short (sell).
3. Margin balance
The margin balance represents the actual margin used for the current position. It dynamically adjusts based on the position's unrealized PNL.
Example: If a long position requires an initial margin of 100 USDT and a 10 USDT unrealized loss occurs due to price fluctuations, the margin balance will be adjusted to 90 USDT.
The margin balance directly affects the risk of liquidation. If the balance falls below the maintenance margin level, the position may be forced to liquidate.
4. Margin modes
(1) In the cross margin mode, all available assets in the futures account are shared by all open positions
(2) In the isolated margin mode, assets in a user's account are isolated from the margin in any open position.
5. Liquidation Risk
Liquidation risk is calculated based on the position margin and the maintenance margin for the current position. The larger the value, the higher the risk.
🔗 Related articles for beginners:
What are Isolated & Cross Margin Modes >>
What is Tiered Maintenance Margin >>
🔗 More advanced content:
Introduction to Futures Take-Profit and Stop-Loss (TP/SL) >>
Introduction to Futures Pyramiding Auto-Settlement >>
Introduction to Futures PNL Analysis >>
Introduction to Auto-Deleveraging (ADL) in Futures Trading >>
How to Start Futures Trading at CoinEx?
1. Follow User Reference, sign up for an account, and complete identity verification (KYC).
2. Study How to Deposit Cryptos to CoinEx.
3. Go to the “Futures Trading” page and confirm the “CoinEx Futures Trading Risk Reminder”.
4. Follow these steps to open a position:
(1) Select a market (e.g., BTCUSDT), check live market data and depth charts, and analyze your trading direction.
(2) Choose a margin mode (Cross or Isolated) and set the leverage multiplier.
(3) Select an order type and enter your desired price and quantity.
(4) Click the Place Order button to submit a Buy/Long or Sell/Short order.
(5) The position is opened after the order is filled.
🔗 Related articles:
Introduction to Futures Order Types >>
Introduction to Futures Funding Fees >>
Linear Contract Trading Tutorials (Web｜App)
Inverse Contract Trading Tutorials (Web｜App)
Futures Demo Trading: Practice in a Risk-Free Environment
With no real money involved, Beginners can practice futures trading in a simulated environment. The market data is fully synchronized with the real market, allowing you to practice opening/closing positions and setting TP/SL without risk.
- Isolated account: Demo accounts are separate from real accounts, so your real funds remain unaffected.
- Full features: Supports limit/market orders, cross/isolated margin modes, and the same interface as real trading.
- Unlimited restarts: Reset your demo account anytime to try again after losses.
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