BigONE Perpetual Contract Trading Rules

Perpetual contract trading, also known as perpetual futures, allows traders to speculate on price movements without expiry dates and potential loss exceeding deposits.

Nov 29, 2024 at 02:12 am

BigONE Perpetual Contract Trading Rules

Welcome to BigONE's comprehensive guide to perpetual contract trading. Perpetual contracts, also known as perpetual futures, are financial instruments that allow traders to speculate on the price movements of underlying assets without having to worry about expiry dates. This guide will provide you with all the information you need to get started with perpetual contract trading on BigONE.

Risk Disclosure

Perpetual contract trading is a leveraged product, which means that you can potentially lose more money than you deposit. Before you start trading, it is important to understand the risks involved and to make sure that you have the financial resources to cover potential losses.

Product Specifications

BigONE offers perpetual contracts on a variety of underlying assets, including:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)
• Bitcoin Cash (BCH)
• Ripple (XRP)
• EOS
• Tron (TRX)
• Binance Coin (BNB)
• Huobi Token (HT)
• OKB

Each perpetual contract has its own unique specifications, including:

• Tick size: The minimum price increment that can be traded.
• Contract size: The number of underlying assets that each contract represents.
• Margin requirement: The minimum amount of margin that must be maintained in order to hold a position.
• Leverage: The ratio of the trader's capital to the margin required to hold a position.

Funding Rates

Perpetual contracts are perpetual, meaning that they do not have an expiry date. However, they are subject to funding rates, which are paid by traders who hold long positions to traders who hold short positions. Funding rates are designed to ensure that the price of the perpetual contract tracks the price of the underlying asset.

Order Types

BigONE supports a variety of order types for perpetual contract trading, including:

• Limit orders: Orders that are executed at a specified price or better.
• Market orders: Orders that are executed at the current market price.
• Stop-limit orders: Orders that are executed when the price reaches a specified level.
• Take-profit orders: Orders that are executed when the price reaches a specified profit target.
• Stop-loss orders: Orders that are executed when the price reaches a specified loss threshold.

Trading Fees

BigONE charges a maker-taker fee model for perpetual contract trading. Makers, who add liquidity to the market by placing limit orders, receive a rebate on their trading fees. Takers, who remove liquidity from the market by placing market orders, pay a trading fee.

Margin Management

Traders must maintain a sufficient amount of margin in their account in order to hold perpetual contract positions. Margin can be added to the account via deposit or by transferring funds from the spot wallet.

Liquidation

If a trader's margin falls below the required level, their positions will be liquidated. Liquidation is the process of selling a trader's positions at market price to cover their losses.

Risk Management

Perpetual contract trading is a leveraged product, which means that it carries significant risk. Traders should implement sound risk management strategies to protect their capital. These strategies include:

• Using stop-loss orders: Stop-loss orders can help to limit losses in the event of an adverse price movement.
• Managing leverage: Using too much leverage can magnify losses. Traders should only use leverage that they can afford to lose.
• Diversifying portfolios: Diversifying portfolios across different asset classes can help to reduce risk.