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Coin Margined Contract Introduction
2020-11-20 15:12

What is coin margined contract?

Perpetual contract is a derivative similar to traditional futures contracts that can provide up to 150X leverage.


About Bibox BTCUSD coin margined contract

1. No settlement date: the perpetual contract has no expiration time, so there is no restriction on the position holding time;

2. Anchor spot: In order to ensure the tracking of the underlying price index, the perpetual contract uses the mechanism of Funding Cost to ensure that its price closely follows the price of the underlying asset;

3. Price Marking: Perpetual contracts use reasonable price marking methods to avoid forced liquidation due to lack of liquidity or market manipulation;

4. ADL: Perpetual contracts use an automatic ADL mechanism instead of an account sharing mechanism to deal with losses caused by liquidation of large positions.


Details about BTCUSD Coin Margined Contract

1. Pricing unit: Bibox perpetual contract uses "USD" as the standard pricing unit, and the minimum trading unit is 1 USD.

2. Nominal value: The nominal value is the value of the futures contract. The nominal value of BTCUSD is priced in USD or BTC.

For example: for a long position of 100 USD, the nominal value is 100 USD;

Or the nominal value(BTC)= position / open position price
                                   = 100 USD / 12,000 USD 
                                   = 0.008333 BTC

3. Profit: profit refers to the unsettled transaction gains and losses of the current holding positions in the transaction.

For example, when user A opens a 1000 USD and BTCUSD long contract, the profit will be 0.005 BTC (unsettled). Once user A closes the position, it can be said that user A has obtained a realized profit and loss of 0.0007 BTC (settled to the available balance).

Long position profit (BTC) = position x (1 /open position price - 1 / mark price)

Short position profit (BTC) = position x (1 /mark price - 1 / open position price)

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