A perpetual futures contract is a form of derivative instrument which means that traders can maintain leveraged positions in any time frame. Crypto perpetual futures contracts are just like regular perpetual futures contracts, but their underlying assets are cryptocurrencies.
1. What is Perpetual Futures in BingX?
Perpetual Futures is the most popular contract product in the current digital asset derivatives market. BingX's Perpetual Futures is a perpetual contract with USDT as margin. It has no due date and never expires.
2. 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 due to the arrival of the 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 and 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 bottoms with Perpetual Futures when prices are low, and there is a high probability that they can hold long-term positions to obtain long-term returns.
2) Always converge with the spot market price of digital assets
BingX’s Perpetual Futures uses the funding rate adjustment mechanism to stay in line with the spot index price. The BingX contract 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’s Perpetual Futures uses the "funding rate" mechanism to keep the balance between long and short parties.
3) Flexible and adjustable leverage of up to 100X
Digital assets delivery contracts have relatively smaller leverage, while BingX Perpetual Futures allows much higher leveage. The maximum leverage depends on the trading pairs. The BTC/USDT trading pair supports maximum leverage of 100X.
Traders can flexibly adjust the leverage after opening a position according to their needs to achieve the best trading experience. In addition, investors need to understand that leverage is determined by the initial margin and maintenance margin. These two 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 traders, while the isolated-margin mode is for short-term investors 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: Comparison of Cross Margin Mode and Isolated Margin Mode
3. Perpetual Futures Features
Before trading with BingX Perpetual Futures, traders need to understand the mechanism and features of Perpetual Futures. Pay attention to the following differences when trading.
1) Margin: Perpetual Futures currently support the use of USDT as margin; Standard Futures include both USDT- and Coin-margined contracts.
2) Order Type: Perpetual Futures supports Limit Order, Market Order, and Trigger Order; Standard Futures does not support Limit Order currently.
3) Position: For Perpetual Futures, multiple orders are combined into one "position" for easy management; For Standard Futures, each order is managed independently, which is simpler and more intuitive for common users.
4) Mark prices: Perpetual Futures uses the mark price to calculate the unrealized profit and loss, and the mark price is calculated based on the moving average to avoid market manipulation and allow Perpetual Futures index prices to converge with spot prices.
5) Trading fee rates: The current Taker fee rate of Perpetual Futures is 0.045%, and the Maker is 0.020%. The trading fee rate for Standard Futures is currently 0.045%, and the trading fee rate for CopyTrade is 0.0375%. It is only charged when the position is closed and no trading fee is charged for opening a position.
6) Funding fees: BingX Perpetual Futures collects funding fees from users who hold positions. The Funding Fee is paid to or by users (buyers and sellers) every 8 hours. If the funding rate is positive, the longs pay the funding fee to the shorts. If negative, the shorts pay to the longs. Please note that users only need to pay or receive funding fees when they hold positions at 00:00, 8:00, 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: Fee Schedule of Perpetual Futures
7. Leverage: Perpetual Futures supports leverage within a certain range, currently 1-100X. Standard Futures supports leverage between1-150x.
In short, agile investors can find that in addition to using small funds 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 involvess 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.