- 2.1What are Futures?
- 2.2What is a Perpetual Contract?
- 2.3Binance JEX Futures Perpetual Contract Specifications
- 3.1Trading Interface Guide
- 3.2 What is a Limit Order?
- 3.3 How to Place a Limit Order?
- 3.4 How to Check Your Positions
- 3.5 How to Check Your Open Orders
- 3.6 How to Check Your Order History
- 3.7 How to Check the Fees Paid
- 7.1 Forced Liquidation
- 7.2 What is Order Margin?
- 7.3 Trading Fees on Binance JEX Futures
- 7.4 What is Futures Account?
- 7.5 What is Fair Mark Price?
- 7.6 What is Premium Index?
- 7.7 What is Interest Rate?
- 7.8 What is Unrealised / Realised Profit and Loss (PNL)?
- 7.9 What is Fund Rate?
- 7.10 What is Fund Fee?
- 7.11 What is Margin?
- 7.12 What is Maintenance Margin?
- 7.13 What is Position Margin?
- 7.14 What is Order Margin?
- 7.15 What is Order?
- 7.16 What Are Risk Limits?
- 7.17 What is Adjustment of Risk Limits?
- 7.18 What is ADL Sequence?
1.Getting Started
1.1How to Register?
1. Please visit Binance JEX Futures official testnet website https://www.jex.com/ and click on the "Sign Up" button on the top right corner to start the registration process.
2. On the registration page, you will be required to fill in your email address. Click “Get Code” button, and a six-digit verification code will be sent to your email address.
3.If you are not receiving the verification email, please check your “Spam” or “Junk” mail folders.
4. Input the six-digit verification code and your password, then click on the “Sign Up” button.
5. Congratulations! Now your account has been activated. You can start trading.
1.2How to Start a Futures Trade?
1.Please visit Binance JEX Futures official testnet website at https://www.jex.com/ and click on the "Futures" button on the top left corner.
2.Select the futures symbol you would like to trade.
3.Enter the price and amount you would like to place an order.
Click “Buy / Long” button if you are bullish. Click “Sell / Short” button if you are bearish.
2.About Binance JEX Futures
2.1What are Futures?
Futures are standardized agreements that allow traders, investors, and commodity producers to speculate on the future price of an asset.
Futures contracts are subject to a particular set of rules, which may include, for instance, the size of the contracts and the daily interest rates.
In many cases, the execution of futures contracts is guaranteed by a clearing house, making it possible for parties to trade with reduced counterparty risks.
Should you be interested to learn more about futures, you may visit Binance Futures for more information.
2.2What is a Perpetual Contract?
A perpetual contract is a derivative product that is similar to a traditional futures contract. It allows traders to profit from both bearish and bullish markets by choosing either a short or long position.
Contrary to traditional futures, perpetual contracts do not have an expiry date and settlement, and are anchored to the spot index price.
Should you be interested to learn more about futures, you may visit Binance Futures for more information.
2.3Binance JEX Futures Perpetual Contract Specifications
|
Symbol |
BTCUSDT |
|
Type |
USDT quoted and settled |
|
Expiry Date |
Perpetual |
|
Initial Margin |
1% + Entry Taker Fee |
|
Maint. Margin |
0.5% + Funding Rate |
|
Funding Interval |
every 8 hours |
|
Mark Price |
Index Price * (1 + Funding Basis) |
|
Adjust Leverage |
Manual |
|
Leverage |
100x, 50x, 20x, 10x, 5x, 3x, 2x, 1x |
|
Contract Size |
1 BTC |
|
Lot Size |
0.0001 Contract |
|
Tick Size |
0.1 USDT |
|
Symbol |
EOSUSDT |
|
Type |
USDT quoted and settled |
|
Expiry Date |
Perpetual |
|
Initial Margin |
1% + Entry Taker Fee |
|
Maint. Margin |
0.5% + Funding Rate |
|
Funding Interval |
every 8 hours |
|
Mark Price |
Index Price * (1 + Funding Basis) |
|
Adjust Leverage |
Manual |
|
Leverage |
100x, 50x, 20x, 10x, 5x, 3x, 2x, 1x |
|
Contract Size |
1 EOS |
|
Lot Size |
0.1 Contract |
|
Tick Size |
0.001 USDT |
|
Symbol |
ETHUSDT |
|
Type |
USDT quoted and settled |
|
Expiry Date |
Perpetual |
|
Initial Margin |
1% + Entry Taker Fee |
|
Maint. Margin |
0.5% + Funding Rate |
|
Funding Interval |
every 8 hours |
|
Mark Price |
Index Price * (1 + Funding Basis) |
|
Adjust Leverage |
Manual |
|
Leverage |
100x, 50x, 20x, 10x, 5x, 3x, 2x, 1x |
|
Contract Size |
1 ETH |
|
Lot Size |
0.01 Contract |
|
Tick Size |
0.01 USDT |
3.Trading
3.1 Trading Interface Guide
- Futures Symbol
- Chart
- Order Book
- Market Information
- Position
- Order Place
- Completed Trade List
- Open Orders and History
3.2 What is a Limit Order?
With limit orders, you can buy below or sell above a specific price.
It guarantees an order to be filled at or better than a specific price level.
However, a limit order is not guaranteed to be filled. If the price you placed does not match an existing order, the limit order will be added to the order book.
3.3 How to Place a Limit Order?
- Enter the price and amount.
Click on the “Buy / Long” button if you are bullish, or “Sell / Short” button if you are bearish.
3.4 How to Check Your Positions
You may check your open positions under “Position” or under the tab “All Positions”.
- Leverage: The leverage of your position of the symbol.
- ROE%: ROE% = PNL / position margin.
- Margin: The amount of margin locked by the position.
- Maint. Margin: When Margin ≤ Maint. Margin or Margin + Unrealized PNL ≤ Maint. Margin, the position would be liquidated.
- Liquidated: It is a reference price calculated via unrealized PNL that could be used to compare to mark price.
- Risk Limits: Highest order and position value with current leverage. Lower leverage means higher risk limits.
3.5 How to Check Your Open Orders
You can check the active orders under this tab.
If you want to cancel open orders, you can cancel each individual transaction by clicking the “Cancel” button that is in yellow colour and located on the right side of each order.
3.6 How to Check Your Order History
Under this tab, you can check your order history including the status of each order. You can check whether an order has been filled or expired.
3.7 How to Check the Fees Paid
Check the transaction fees incurred and realized profit or loss under this tab.
4. Leverage
4.1 Does Binance JEX Futures Offer Leverage?
Yes, Binance JEX Futures offers different leverages based on Initial Margin and Maintenance Margin levels.
4.2 How High Leverage Does Binance JEX Futures Offer?
Binance JEX Futures currently offers 100x, 50x, 20x, 10x, 5x, 3x, 2x, 1x leverage;
As an example, a 1,000 USDT collateral deposit can hold 100,000 USDT worth of BTC/ EOS/ ETH under 100x leverage.
Initial margin rate varies depending on the leverage and the size of the position - the larger the position, the lower the leverage allowed.
|
Leverage |
Risk Limits |
IM Rate |
|
100x |
100k USDT |
1.00% |
|
50x |
300k USDT |
2.00% |
|
20x |
900k USDT |
5.00% |
|
10x |
1,900k USDT |
10.00% |
|
5x |
3,900k USDT |
20.00% |
|
3x |
6,500k USDT |
33.33% |
|
2x |
9,900k USDT |
50.00% |
|
1x |
19,900k USDT |
100.00% |
|
Order & Position Value |
IM Rate |
MM Rate |
|
0-100k USDT |
1.00% |
0.50% |
|
100k-300k USDT |
2.00% |
1.50% |
|
300k-900k USDT |
5.00% |
4.50% |
|
900k-1,900k USDT |
10.00% |
9.50% |
|
1,900k-3,900k USDT |
20.00% |
19.50% |
|
3,900k-6,500k USDT |
33.33% |
32.83% |
|
6,500k-9,900k USDT |
50.00% |
49.50% |
|
9,900k-19,900k USDT |
100.00% |
99.50% |
5. Profit and Loss Guidelines
5.1 How to Calculate Unrealized Profit and Loss (PnL)?
If you open 10 BTC, LONG position at $10,000 in BTCUSDT futures contracts, and later the market goes up and the Mark Price becomes $11,000, then your Unrealized PnL will be:
Unrealized PnL = ( $11,000 - $10,000) * 10 = $10,000
5.2 How to Calculate Realized PnL?
If you open 10 BTC, SHORT position at $10,000 in BTCUSDT futures contracts, later the market goes up and the Mark Price becomes $11,000, you close your position and take a loss, then your Realized PnL will be:
Realized PnL = ( $10,000 - $11,000) * 10 = $-10,000
6. Liquidation
Binance JEX futures are highly leveraged. The highest leverage can be up to 100x.
To keep these positions open, traders are required to hold a percentage of the value of the position in the exchange, known as the Maintenance Margin percentage.
When your margin level falls below the required maintenance margin, your position will be liquidated and you will lose your maintenance margin.
You can review your liquidation price for each position via “Open Positions” Tab and adjust it by adding additional margin via the Leverage Slider.
7. Basic Concepts
7.1 Forced Liquidation
In futures trading, position margin is the financial guarantee for the positions.
The higher the leverage is, the lower the position margin you will need. Binance JEX offers up to 100× leverage.
When the margin of an open position is insufficient or its unrealized loss is too high, the position will be liquidated.
To make this logic clearer, we hereby bring in a new concept: maintenance margin.
Maintenance margin = position value * maintenance margin rate
- position margin <= maintenance margin
- position margin + unrealized PNL <= maintenance margin
When condition 1 or condition 2 is triggered, a position will be liquidated.The trader will lose both the rest of the margin and unrealized profits.
Traders can change leverage to adjust position margin. For example:
If the value of a position a trader holds is less than 2,000K（basic risk limits stall for BTCUSDT contract is 2,000 K. At this stall, maintenance margin is 0.5%) , under what circumstances will the position be liquidated?
|
Leverage |
Theoretical Opening Margin Rate |
Maintenance Margin Rate |
Theoretical Liquidation Condition (PNL / Position Margin ) |
|
100× |
1% |
0.50% |
-50.00% |
|
50× |
2% |
0.50% |
-75.00% |
|
20× |
5% |
0.50% |
-90.00% |
|
10× |
10% |
0.50% |
-95.00% |
|
5× |
20% |
0.50% |
-97.50% |
|
3× |
33% |
0.50% |
-98.49% |
|
2× |
50% |
0.50% |
-99.00% |
|
1× |
100% |
0.50% |
-99.50% |
Note:
The liquidation conditions mentioned in the table above are merely theoretical conditions.
In real cases, other factors such as fund fee and premium compensation of order margin should also be taken into consideration.
7.2 What is Order Margin?
Order margin refers to the fund being frozen when a leveraged order is placed, and it is calculated according to the following rules:
-
In any buy order, order margin = price * qty * order margin rate
-
In any sell order, order margin = max (price, bid) * qty * order margin rate
-
Order margin will not be frozen until positions are increased.
To minimize the risk of liquidation, a trader may opt to add additional order margin. This added margin is called premium compensation of the order margin.
-
When entrusted buy price is higher than fair mark price, or when entrusted sell price is lower than fair mark price, additional order margin will be needed.
-
Premium compensation=(entrusted price - fair mark price) * qty
-
For instance, when fair mark price is 1,000 USDT, and the trader buys 5 BTC at the price of 1,050 USDT, the order margin needed will be 1,050 USDT * 5 BTC * order margin rate +( 1,050 USDT – 1,000 USDT ) * 5 BTC
Note:
For premium compensation of the order margin, long/buy is positive and the short/sell is negative.
7.3 Trading Fees on Binance JEX Futures
Binance JEX futures will charge fees from both makers and takers.
|
Maker |
0.00% |
|
|
Taker |
0.06% |
50%OFF |
Trading fees might be adjusted periodically. For more details, please check Trading Fee Standard.
7.4 What is Futures Account?
Binance JEX futures account is different from Binance JEX spot account.
If you deposit assets into Binance JEX, assets will go into your spot account.
If you want to trade on Binance JEX futures, you should first transfer assets from your Binance JEX spot account to your Binance JEX futures account.
7.5 What is Fair Mark Price?
Binance JEX futures employs a fair mark price mechanism.
1.Binance JEX futures leverage can be as high as 100x. For traders using high leverages, it is vital to minimize the occurrence of liquidations. That is to say, traders will need a reasonable and hard-to-manipulate market price to calculate unrealized PNL. This market price is called mark price.
2.Binance JEX perpetual contract employs a fund fee mechanism to keep futures price matching market price. Funds will be cleared every 8 hours and fund fee shall be taken into consideration when calculating the fair mark price.
Mark price= Index * [1+ current fund rate * (Rest time before next funding fee generated/ Time interval of the formation of fund fee)]
Time stamp is employed to accurately calculate fund basis.
Index constituent of BTCUSDT perpetual contract
|
Exchange |
Pair |
Weight |
|
Binance |
BTC/USDT |
40% |
|
Huobi |
BTC/USDT |
30% |
|
OKEx |
BTC/USDT |
30% |
Index constituent of ETHUSDT perpetual contract
|
Exchange |
Pair |
Weight |
|
Binance |
ETH/USDT |
40% |
|
Huobi |
ETH/USDT |
30% |
|
OKEx |
ETH/USDT |
30% |
Index constituent of EOSUSDT perpetual contract
|
Exchange |
Pair |
Weight |
|
Binance |
EOS/USDT |
40% |
|
Huobi |
EOS/USDT |
30% |
|
OKEx |
EOS/USDT |
30% |
3.Fair mark price is used to calculate unrealized PNL, fund fee as well as to reduce unnecessary liquidations.
There is a difference between mark price and actual price. When an order is filled, both floating PNL and realized profits / losses will be calculated using actual transaction price. Traders shall not only pay attention to actual price, but also focus on mark price.
7.6 What is Premium Index?
In Binance JEX, the perpetual contract price might be slightly higher or lower than the fair mark price due to different market conditions.
Premium Index is used to adjust the next fund rate so that the price of the perpetual contract is consistently in line with the fair mark price .
7.7 What is Interest Rate?
Every contract traded on Binance JEX futures consists of two instruments: a Base Coin and a Quote Coin. For example, ETH/USDT.
Interest Rate is the rate between the two coins.
7.8 What is Unrealised / Realised Profit and Loss (PNL)?
Unrealised PNL
Unrealised PNL is calculated based on the difference between average entry price and fair mark price.
Realised PNL
Realised PNL is calculated by based on the difference between average entry price and actual price.
Trading Fees
Binance JEX futures charges a trading fee on every completed futures contract trade.
Funds
Cleared every 8 hours. When Fund Rate is positive, longs pay shorts. When it is negative, shorts pay longs.
7.9 What is Fund Rate?
Fund Rate is affected by Interest Rate and Premium Index.
It is applied to guarantee that price of Binance JEX perpetual contract always stays close to the fair mark price.
Binance JEX Futures calculates Premium Index and Interest Rate every minute and then calculate a weighted average value every 8 hours.
Current Fund Rate is calculated based on the data of last 8 hours.
Binance JEX Futures has set up limits for Fund Rate so as to guarantee traders could use highest leverage.
Binance JEX futures will not charge for any fund.
Fund will only be exchanged between traders.
7.10 What is Fund Fee?
Binance JEX futures employs a Fund Mechanism to ensure the actual price of perpetual contract stays close to the fair mark price.
Binance JEX Futures Fund Fee is reset every 8 hours, at 00:00，08:00, and16:00 of Singapore Time.
Traders will only pay or receive fund if they have open positions at the three times mentioned above.
If traders close their positions before the three times, fund will not be charged or paid.
Reminder
- When Fund Rate is a positive, longs pay shorts. When it is negative, shorts pay longs.
- Fund will be paid by Position Margin. The reduction of margin might lead to forced liquidation. The received Fund would go to the relevant futures account.
- Rest Position Margin is a result of Position Margin + PnL.
When Rest Position Margin - Preliminary Fund reduction of next period cannot meet requirements of maintenance margin, positions might be forcedly liquidated.
7.11 What is Margin?
Margin is a critical concept for people trading commodity futures and derivatives in all asset classes.
For futures, margin is a good-faith deposit or an amount of capital one needs to post or deposit in order to open a position.
It can be viewed as a down payment on the full value of a futures contract.
7.12 What is Maintenance Margin?
The minimum margin amount needed to hold the current position.
Maintenance Margin = Open Positions Avg. Price * Positions * Maint. Margin Rate
7.13 What is Position Margin?
When position margin drops below maintenance margin, the position will be liquidated.
The trader’s loss will never be higher than the position margin.
Generally speaking, the higher the leverage is, the lower the position margin needed will be.
Positions with higher leverage (i.e. lower position margin) have a higher risk of being liquidated.
7.14 What is Order Margin?
Traders will be required to freeze an amount of order margin when an order is being placed.
For buy order, Order Margin is Price * Qty * Order Margin Rate,
For sell order, Order Margin is (Max between price & bid) * Qty * Order Margin Rate.
7.15 What is Order?
When a trader places an order, the system will check if he/she has enough available balance to reserve as initial margin before he/she is allowed to submit the order.
If the trader already has an existing position in that contract, the system will also check if he/she has enough available balance to cover changes in maintenance margin and PNL.
The trader will only be allowed to place an order when he/she has enough balance.
7.16 What Are Risk Limits?
Risk limits are set to avoid liquidation of large positions.
Large positions pose great risks for other traders. This is because when a huge position is liquidated, other traders’ positions might be automatically deleveraged.
Risk Limits are set to help prevent this from happening.
7.17 What is Adjustment of Risk Limits?
Traders should manually increase or decrease leverage to adjust risk limits.
If entrusted position surpasses risk limits, a window will pop up to alert the trader to decrease leverage.
In that situation, the trader will not be able to open any new positions. He/she should decrease leverage to increase risk limits, so that they will be allowed to open positions again.
7.18 What is ADL Sequence?
Deleveraging order is determined by traders’ profits and leverage. Accounts with more profits and using higher leverage will be firstly deleveraged.
Detailed order determination method is as follows:
The system will classify all positions into longs and shorts and rank them from highest to lowest.
The sequence is determined by PNL and Leverage of each position.
Traders with more profits and using higher leverage will rank highest for ADL process.
Longs and shorts will be in different sequence.
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