An Introduction to Linear Futures Contracts
The Linear Futures Contract also called USDT-M Future Contract, that allows you to long buy or short sell cryptos and earn profits based on the price prediction. The Linear Futures Contract 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.）|
|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||
Fair Price: Linear Contract adopts Fair Price Marking that determines the unrealized profit or loss and liquidation of the position.
Initial Margin: The minimum amount of margin for position open.
Maintenance Margin: The 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, the rule only applies to the positions open at the funding timestamps 0:00, 8:00, and 16:00 (UTC).
Contract Leverage: CoinEx futures contract employs several adjustable leverages ranging from 3X to 100X.
Cross Margin: Any 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.
Index Price: Index Price is determined by the weighted prices from a selection of mainstream crypto exchanges. The crypto exchange and weight of different contract index prices may be different, and you can click here to view the index price in Contract Info.
Trading Hours: 24/7 Round the clock, no limitation on the settlement date.
Order Type: Short Sell, Long Buy, Long Sell Close, and Short Close.
Buy Long: Buy and Sell: Assuming that the market price will increase in the future, the trader can buy a certain number of contracts, and sell (or close the position) to earn the difference when the market price rises again.
Sell Short: Buy and Sell: Assuming that the market price will fall in the future, the trader can sell a certain number of contracts, and buy (or close the position) to earn the difference when the market price falls again.
Liquidation Mechanism: Partial liquidation, insurance funding, and auto-deleveraging are adopted in the case of forced liquidation.
Position: Only 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 exceeds 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.
Linear Contract: BTCUSDT
|Position Level (BTC)||Maintenance Margin Rate||Minimum Initial Margin Rate||Maximum Leverages|
Linear Contract: ETHUSDT
|Position Level (ETH)||Maintenance Margin Rate||Minimum Initial Margin Rate||Maximum Leverages|
Linear Contract: BCHUSDT
|Position Level (BCH)||Maintenance Margin Rate||Minimum Initial Margin Rate||Maximum Leverages|
Linear Contract: LTCUSDT
|Position Level (LTC)||Maintenance Margin Rate||Minimum Initial Margin Rate||Maximum Leverages|