How to read LBank contract rates

To understand how LBank futures contracts work, traders can follow a guide to identify contract types, locate last and index prices, calculate funding rates, comprehend mark prices, and access contract specifications.

Nov 24, 2024 at 01:34 pm

How to Read LBank Contract Rates

LBank is a centralized cryptocurrency exchange that offers a variety of crypto-related services, including spot trading, margin trading, and futures trading. One of the key features of LBank's futures trading platform is its contract rates, which determine the price at which futures contracts are traded.

Understanding how to read LBank contract rates is essential for traders who want to make informed decisions when trading futures contracts on the exchange. Here is a detailed guide on how to read LBank contract rates:

1. Identify the Contract Type:

   The first step in reading LBank contract rates is to identify the type of contract you are interested in. LBank offers two types of futures contracts: perpetual contracts and quarterly contracts. Perpetual contracts do not have an expiry date, while quarterly contracts expire every three months.

2. Find the Contract Symbol:

   Once you have identified the contract type, you need to find the contract symbol. The contract symbol is a unique identifier that represents the specific contract you are interested in. For example, the contract symbol for the perpetual BTC/USDT contract on LBank is BTCUSDT.

3. Locate the Last Price:

   The last price is the price at which the most recent contract was traded. You can find the last price by looking at the "Last" column in the LBank futures trading interface.

4. Check the Index Price:

   The index price is the price of the underlying asset that the futures contract is based on. For example, the index price for the BTCUSDT perpetual contract is the spot price of Bitcoin on the LBank exchange. You can find the index price by looking at the "Index" column in the LBank futures trading interface.

5. Calculate the Funding Rate:

   The funding rate is a fee that is paid by one side of the contract to the other side. The funding rate is calculated based on the difference between the last price and the index price. If the last price is higher than the index price, then the long side of the contract will pay the short side a funding fee. If the last price is lower than the index price, then the short side of the contract will pay the long side a funding fee. You can find the funding rate by looking at the "Funding Rate" column in the LBank futures trading interface.

6. Understand the Mark Price:

   The mark price is a price that is calculated based on a weighted average of the last prices of recent trades. The mark price is used to determine the settlement price of a futures contract if it is liquidated. You can find the mark price by looking at the "Mark" column in the LBank futures trading interface.

7. Read the Contract Specifications:

   The contract specifications provide detailed information about the specific futures contract, including the contract size, the leverage ratio, and the minimum margin. You can find the contract specifications by clicking on the "Specifications" tab in the LBank futures trading interface.