USDT Swap Perpetual Contract Introduction

What is a perpetual contract？

From a trading perspective, perpetual contracts are similar to traditional futures contracts, but they are not exactly the same as traditional contracts. Perpetual contracts have no expiration date or settlement date, and users can hold them forever. This is why it is called perpetual. 

What is the difference between perpetual contracts and other contracts?

Perpetual contracts have no expiration date or settlement date. As long as your position does not touch the liquidation line, you can hold it forever.

How to trade perpetual contracts?

1. Select contract trading pair.
2. Enter the price and quantity you want to open on the open position page. The system will automatically calculate the number of contracts that can be opened based on the price and quantity you enter. Click buy/long or sell/short, and the system will match your orders.
3. After the opening order is successfully matched, you can see your current position information in the position.
4.  When closing a position, you only need to enter the price and quantity you want to close on the position closing page, and click close short or close long, and the system will match your order.
5. After the closing order is successfully matched, you can see your transaction information in the transaction record.

Perpetual Futures Index Price

Perpetual Futures Index Price is obtained by taking the median of spot prices of Future, Huobi, OKex, and Binance, and then taking the weighted average value through the algorithm.

Margin and leverage

All margins are settled in USDT, and users can trade in two directions, buy/long or sell/short.

*Future Perpetual contracts provide 1-100 times leverage, you can customize the leverage multiples, and you can adjust the leverage twice after opening a position.

Perpetual contract market mechanism

When trading futures contracts, traders need to understand several mechanisms in the futures market, and the same applies to perpetual contracts.

1. Anchor index: the opening price determines the unrealized profit and loss and the liquidation price, and the unrealized profit and loss is anchored by the spot index price.
2. Initial and maintenance margin: the amount of margin will determine how larger leverage you could use, and which price will trigger liquidation.

Transaction fee

Transaction fee =average transaction price*transaction amount*transaction fee rate

Funds cost

Funds cost is generated every 8 hours, respectively at 00:00, 08:00, and 16:00 (GMT+8). Only when the user holds a perpetual contract position at the above three times, the funds cost will be incurred. 

Contract leverage

Future USDT Swap Perpetual Contract supports 1-100 times leverage.

In simple terms, contract leverage is to enlarge your funds. For example, user A has 1 BTC asset. In order to get more income, using 5 times leverage and using 1 BTC as margin, he can mobilize 5 BTC.