How to calculate CoinEx contract rate

To determine the market sentiment, traders should calculate the CoinEx contract rate by factoring in the mark price, index price, and funding rate, ensuring data accuracy by comparing it with the exchange's displayed value.

Nov 30, 2024 at 10:32 pm

How to Calculate CoinEx Contract Rate

Introduction

The CoinEx contract rate is a crucial indicator that reflects the market sentiment and price movement of the underlying asset. Understanding how to calculate this rate is essential for traders evaluating and managing their positions in the CoinEx contract market. This comprehensive guide provides a detailed walkthrough of the calculation process, breaking it down into six distinct steps.

Step 1: Gather Necessary Information

To calculate the CoinEx contract rate, you will need the following information:

Mark Price: The market price is the average price of the asset over a recent period, typically the past 24 hours.
Index Price: The index price is a reference price derived from a combination of spot and futures prices.
Funding Rate: The funding rate is a periodic payment made to or by traders depending on the difference between the mark price and the index price.

Step 2: Determine Contract Spread

Calculate the contract spread by subtracting the mark price from the index price:

Contract Spread = Mark Price - Index Price

Step 3: Incorporate Funding Rate

Adjust the contract spread by applying the funding rate. If the funding rate is positive, add it to the spread; if it's negative, subtract it:

Adjusted Spread = Contract Spread +/- Funding Rate

Step 4: Calculate Weighted Spread

Calculate the weighted spread by multiplying the adjusted spread by the contract's multiplier:

Weighted Spread = Adjusted Spread * Multiplier

The contract multiplier is a value specified by the exchange that determines the number of units of the underlying asset represented by each contract.

Step 5: Add Index Price

Add the index price to the weighted spread to obtain the CoinEx contract rate:

CoinEx Contract Rate = Weighted Spread + Index Price

Step 6: Ensure Data Accuracy

Verify the accuracy of your calculation by comparing the obtained contract rate with the value displayed on the CoinEx exchange. Any discrepancies should be investigated and corrected.

Example

Consider a CoinEx contract with the following parameters:

Mark Price: $10,200
Index Price: $10,000
Funding Rate: 0.01% (positive)

Calculation:

Contract Spread: $10,200 - $10,000 = $200
Adjusted Spread: $200 + 0.01%($10,000) = $200.10
Weighted Spread: $200.10 * 100 (assuming a multiplier of 100) = $20,010
CoinEx Contract Rate: $20,010 + $10,000 = $30,010

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