Perpetual Futures is a form of derivatives instrument which means that traders can maintain leveraged positions in any time frame. Perpetual Futures in the crypto market is just like regular perpetual futures contracts, but their underlying assets are cryptocurrencies.
1. What Is BingX Perpetual Futures?
Perpetual Futures is the most popular futures product in the crypto derivatives market. BingX Perpetual Futures is a perpetual contract with USDT as the margin. It has no delivery date and never expires.
2. What Are the Features of BingX Perpetual Futures?
In recent years, BingX Perpetual Futures has become more and more popular with crypto futures investors. Part of the reason is that Perpetual Futures never delivers. It can improve the situation that investors have to close their positions first and then re-open a position again due to the approaching contract delivery date. At the same time, it also solves the problem of missing market fluctuations caused by tedious operation procedures. In summary, BingX Perpetual Futures has the following three characteristics:
1) No delivery date
BingX Perpetual Futures has no expiry date or delivery date. Traders can hold their positions for a long time to obtain greater investment returns. The most important thing is that traders can buy at the bottom with Perpetual Futures when prices are low, and there is a high probability that they can hold long-term positions to gain long-term returns.
2) Always converge with the Spot market price of digital assets
BingX Perpetual Futures uses the funding fee adjustment mechanism to stay in line with Spot index price. The BingX futures index prices are taken from a weighted average of Spot market prices on Huobi, Binance, and OKX. In this way, it is possible to prevent whale traders from maliciously manipulating market prices and causing investors to suffer huge losses. BingX Perpetual Futures uses the "funding fee" mechanism to keep the balance between long and short parties.
3) Flexible and adjustable leverage of up to 150x
Digital assets delivery contracts have relatively lower leverage, while BingX Perpetual Futures allows much higher leverage. The maximum leverage depends on the trading pairs. The BTC/USDT trading pair supports maximum leverage of 150x.
Traders can flexibly adjust the leverage after opening a position according to their needs for the best trading experience. In addition, investors need to understand that leverage is determined by the initial margin and maintenance margin. These two factors determine the minimum fund required to open and maintain a position.
For more details, please refer to "About Perpetual Futures Trading Pairs, Leverage and Limits".
Support two trading modes: cross margin mode and isolated margin mode
BingX Perpetual Futures allows users to switch between cross margin mode and isolated margin mode. In general, the cross margin mode is suitable for hedging, while the isolated margin mode is more suitable for short-term trading to better implement risk control strategies. After holding a position, you can adjust the position margin to manage your risk at any time.
For more details, please refer to the "Comparison of Cross Margin Mode and Isolated Margin Mode".
3. How Is Perpetual Futures Different From Standard Futures?
Before trading with BingX Perpetual Futures, traders need to understand how Perpetual Futures is different from Standard Futures. Below are differences that you need to take note of while trading.
1) Margin: Perpetual Futures currently supports the use of USDT as the margin, while Standard Futures includes both USDT- and coin-margined contracts.
2) Order Type: Perpetual Futures supports Limit Order, Market Order, and Trigger Order, while Standard Futures doesn't support Limit Order at the moment.
3) Position: For Perpetual Futures, multiple orders are combined into one "position" for easy management, while for Standard Futures, each order is managed independently, which is simpler and more intuitive for ordinary users.
4) Mark Price: Perpetual Futures uses mark price to calculate unrealized PnL, and mark price is calculated based on the moving average to avoid market manipulation while allowing Perpetual Futures index prices to converge with Spot prices.
5) Trading Fee: The current Taker fee for Perpetual Futures is 0.045%, and the Maker is 0.020%. The trading fee rate for autonomous trading in Standard Futures is currently 0.045%, and the trading fee rate for Copy Trading is 0.0375%. It is only charged when the position is closed and no trading fee is charged for opening a position.
6) Funding Fee: BingX Perpetual Futures collects funding fees from users who hold positions. Funding Fee is paid to or by users (buyers and sellers) every 8 hours. If the funding rate is positive, long position holders pay funding fees to short position holders. If negative, short position holders pay long position holders. Please note that users only need to pay or receive funding fees when they hold positions at 00:00, 08:00, and 16:00. The funding rate for Perpetual Futures is calculated slightly differently from Standard Futures, although they are negligible fees.
For details, please refer to "Perpetual Futures | Fee Schedule".
7. Leverage: Perpetual Futures supports leverage within a certain range, currently it's 1-150x. Standard Futures supports leverage between 1-150x.
In short, agile investors can find that in addition to using small capital to gain large returns, BingX Perpetual Futures saves cumbersome steps such as delivery, and position closing and reopening. BingX Perpetual Futures is the best way for experienced traders to earn much more from the crypto market than through regular trading.
For details, please refer to "Perpetual Futures - Simplified Version Guide (APP)".
Risk Warning: Futures trading involves leverage and some of the underlying assets can use high leverage which amplifies your position amount but also your risks. Traders should be aware of the high risks associated with high leverage.