- What is Futures?
- What is Bitcoin perpetual futures?
- Why should I trade Bitcoin futures instead of Bitcoin itself?
- Where to trade Bitcoin Futures?
- About Bitcoin Futures Margin
What is Futures?
Futures are an agreement between two parties to buy or sell a commodity or financial instrument on a precise future date at a specified price.
When the contract expires, both parties to the contract must buy and sell at the agreed price – even if the price of the underlying asset has fallen or risen over time.
Futures are used to try to make a profit when people speculate on the price movement of the underlying asset.
They are also used to hedge against the risk of price fluctuations, which is especially useful when the underlying asset’s price is very volatile.
Bitcoin futures is the futures based on Bitcoin.
What is Bitcoin perpetual futures?
It has no expire date, and it’s price is always near to the spot Bitcoin price.
Why should I trade Bitcoin futures instead of Bitcoin itself?
1.By trading on Bitcoin futures, you can not only long, but also shot Bitcoin.
For example, if you long Bitcon futures at $1,000, and close position when price is $1500, you earn $500
If you short when Bitcon futures at $1,000, and close position when price is $500, you also earn $500
You can use leverage to magnify your benefits
For example, you can use 100×leverage to long Bitcoin futures at $100. If you close position when price is $1,500. Then you can earn $500×100 = $50,000.
Where to trade Bitcoin Futures?
JEX is a very professional Bitcoin futures trading exchange.
It offers most professional trading environment and up to 100×leverage for Bitcoin futures investors.
JEX official website jex.com
Contact JEX Customer Support by
About Bitcoin Futures Margin
A leverage means the exchange will lend you some money to magnify your benefits.
So that, in order to use leverage to trade Bitcoin futures, you’ll need to provide some money to be freezed, it’s called margin.
You might just know the rule and system will calculate how much your margin will be.
Or you might check on the following details on the margin
The Order Margin required to buy = price * quantity * order margin rate
The Order Margin required to sell = Max (price, bid) * quantity * order margin rate
If the user's order does not increase the number of positions, these orders will not need to freeze the Order Margin.
If the user has a buy commission and a sell commission in the depth at the same time, the Order Margin will be frozen for the sell order that cannot reduce the position.
In addition, if the number of buy orders is more than the number of sell orders, the margin will be frozen for the excess portion of the buy commission.
For example, if a user simultaneously entrusts to buy a 20BTC futures contract at 1,000 USDT and sells a 15BTC futures contract at 2,000 USDT, the user needs a 5BTC buy contract and a 15BTC sell contract Order Margin.
In addition, since the JEX futures contract uses a fair mark price, it means that the Order Margin needs to be increased in part, that is, the price of the buy order is higher than the fair mark price, or the price of the sell order is lower than the fair mark price, then the user needs to freeze more Order Margin. The margin has been added to the difference between the value of the order price and the fair mark price, Order Margin added= (order price – fair mark price) * quantity. For example, if the current market has a fair mark price of 1,000 USDT and a user buys a 10BTC futures contract at 1,010 USDT, the required Order Margin = 1,010 USDT * 10 BTC * The Order Margin rate + ( 1,010 USDT – 1,000 USDT ) * 10 BTC.
Note that when the number of orders and the number of positions are calculated by substituting the formula, the long/buy is positive and the short/sell is negative.