CoinW contract trading rules

Under CoinW's comprehensive contract trading rules, traders, market makers, and liquidity providers must adhere to regulations governing trading hours, leverage usage, liquidation, and risk management to ensure a fair and orderly trading environment.

Nov 08, 2024 at 06:33 pm

CoinW Contract Trading Rules

CoinW is a leading cryptocurrency exchange that offers a comprehensive suite of trading products, including spot trading, margin trading, and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price of cryptocurrencies using leverage.

To ensure a fair and orderly trading environment, CoinW has established a set of comprehensive contract trading rules. These rules govern the conduct of all participants in the contract trading market, including traders, market makers, and liquidity providers.

General Provisions

1. Scope of the Rules: These rules apply to all contract trading activities on the CoinW exchange.

2. Definitions: The following terms are defined for the purpose of these rules:

   • Contract: A tradable instrument that represents an agreement to buy or sell a specified quantity of a cryptocurrency at a specified price on a future date.
   • Margin Trading: A trading strategy that involves using borrowed funds to increase the potential profit or loss from a trade.
   • Leverage: The ratio of borrowed funds to the trader's own funds.
   • Liquidation Price: The price at which a trader's margin position will be automatically closed by the exchange to prevent further losses.
3. Trading Hours: Contract trading on CoinW is available 24 hours a day, 7 days a week.
4. Trading Pairs: CoinW offers a wide range of contract trading pairs, including BTC/USDT, ETH/USDT, and ADA/USDT.
5. Contract Specifications: Each contract trading pair has its own unique specifications, including the contract size, tick size, and minimum price change.

Trading Rules

1. Order Types: Traders can place various order types on CoinW, including market orders, limit orders, and stop orders.
2. Order Execution: Orders are executed on a first-in, first-out (FIFO) basis.
3. Fills and Rejections: Orders are filled at the best available price in the order book. If an order cannot be fully filled, it will be partially filled or rejected.
4. Margin Requirements: Traders must maintain a minimum margin balance to open and maintain a margin position.
5. Liquidation: If a trader's margin balance falls below the liquidation price, their position will be automatically liquidated.
6. Settlement: Contracts are settled at the expiration date according to the settlement price determined by the exchange.

Risk Management

1. Risk Disclosure: CoinW provides a comprehensive risk disclosure statement to all traders.
2. Stop-Loss Orders: Traders can place stop-loss orders to automatically close their positions if the price moves against them.
3. Position Sizing: Traders should carefully consider the size of their positions based on their risk tolerance and financial situation.
4. Demo Account: CoinW offers a demo account to allow traders to practice contract trading without risking real funds.

Market Conduct

1. Prohibited Practices: Certain practices are prohibited on the CoinW contract trading platform, including wash trading, spoofing, and market manipulation.
2. Surveillance and Enforcement: CoinW actively monitors the contract trading market for any suspicious activity.
3. Consequences of Violations: Traders who violate the contract trading rules may face penalties, including account suspension or termination.