Pro (Perps)
Last updated
Last updated
A Perpetual Futures (Perps) contract is a derivative financial contract with no expiry date that allows traders to speculate on the underlying price movement using leverage without owning the underlying.
1-) Possibility to go long or short: if you hold a token on the spot market, you can only benefit from its possible price increase. Perpetual Futures contracts, on the other hand, allow you to profit from price changes in either direction. For example, you can bet that the price of BTC will fall by initiating a short BTC-PERP position and profiting from its decline.
2-) Leverage: If the price of Bitcoin is 60,000 USDC, you can only afford to buy 1 BTC on the spot market if you have 60,000 USDC in your account. However, with a 10x leverage on the BTC-PERP contract, you can open one on Bitvizy Pro with just 6,000 USDC in collateral. Perpetuals increase trading capital efficiency.
3-) Liquidity: Futures market volume far exceeds spot trading volume, allowing customers to access deeper liquidity and trade with minimum price impact.
Bitvizy Pro offers USDC-based Perpetual Futures contracts.
Collateral is in USDC and all perpetual contracts are quoted and settled in USDC.
Bitvizy Pro (Perps) currently offers only cross-margin mode. As a trader, you can deposit USDC collateral and it will be shared across all open positions to calculate the margin ratio.
Bitvizy Pro will enable the following leverages: 2x, 3x, 4x, 5x, 10x, 20x, 50x and 100x.
Order Book: A list of orders to buy or sell a particular asset, organized by price and quantity.
Liquidity: The amount of assets that are available to be traded on a particular exchange or market.
Taker Fee: A taker fee is a fee charged to traders who execute orders that immediately remove liquidity from the order book. This type of order is typically known as a market order.
Maker Fee: A maker fee is a fee charged to traders who place orders that add liquidity to the order book. This type of order is typically known as a limit order.
Maintenance Margin: Maintenance margin is the minimum amount of collateral that must be held in a trader’s account to avoid liquidation. If a trader’s margin falls below the maintenance margin requirement, their position will be liquidated.
Intial Margin: Initial margin is the amount of collateral that must be deposited into a trader’s account to open a position. The initial margin requirement varies depending on the market.
Funding Fee: The funding fee is a periodic payment made between traders (on the long and short side) to ensure that perpetual positions remain fairly priced (close to market price of the underlying asset). The funding fee is calculated based on the difference between the index price and the mark price, as well as interest rate for leverage trading. More information of funding rates/fees can be found here.
Index Price: For a given contract, the Index price is the volume-weighted average of the underlying asset prices listed on major spot exchanges. More information on how we calculate index price can found here.
Liquidation: Liquidation refers to the forced closure of a trader’s leveraged position due to insufficient margin.
