BitMart Futures is a futures trading market, specifically a market for perpetual swaps, offered per the Terms and Conditions for BitMart Futures Market.
Below is the [Frequently-Asked Questions] for BitMart Futures:
1. What is perpetual swap?
The perpetual swap is a kind of derivative that is traded quite similar to traditional futures. Unlike traditional futures, the perpetual swap has no delivery date and anchors index-based price by funding cost rate.
You can read Introduction to Perpetual Swap to learn more about the perpetual swap.
2. What is marked price?
Marked price is the reasonable price marking used by futures for the calculation of unrealized profit/loss and for forced liquidation. It reflects the most reasonable trading price on the current market.
You can read Reasonable Price for more information.
3. Does the BitMart provide trading leverage?
Leverage is generally provided in our future products.
4. How much leverage does the BitMart provide?
The leverage that we offer varies with our product. Leverage is determined by the levels of initial margin and maintaining margin. They determine the minimum fund that you need to open and maintain your position. Leverage is not a fixed multiple, but minimum margin requirement. You can view the levels of minimum initial margin and maintenance margin of all products here.
5. How much is future trading fee?
Future trading fee is divided into Maker Fee and Taker Fee.
*charge maker and the charge taker.
You can read Trading Fee for more information.
6. Why do short positions require more margin at the same opening price than long positions?
Because the short is to predict that the price will fall, the forced liquidation will only occur when the product price rises. When the price rise causes a forced liquidation, the value of the short position will higher than the value when the position is opened. Therefore the forced liquidation fee is higher. The forced liquidation fee reserved in the short position margin will be more than the fee reserved in the long position margin when opening a position at the same price.
Funding Cost Rate
1. What is the funding cost rate? What is its role?
The funding cost of our perpetual swap such as BTC/USDT is exchanged among holders of long positions and short positions at regular intervals. In your trading history, a positive amount means that you’re paying funds for the time period while a negative amount means that you’re collecting funds.
*The BitMart does not pay or collect any funding cost.
2. Why do short positions still need to pay for funding cost rates in case of a significant rise?
Funding cost rate has little to do with the decline or rise of the market, but only with the sentiments of long positions and short positions on the current market (within the BitMart) about the reasonable price. For example, if the market sentiment is that there are still a lot of traders holding bearish afternoon market view though BTC/USDT index has soared, it’s possible that no one buys long positions, thus leading to a lack of long positions on the market.
3. Why not cancel funding costs and let traders gamble among themselves?
Gambling requires rivals. For example, market sentiment tends to be bullish while those who need to buy long positions cannot find rivals, so they have no choice but to buy long positions in the form of high premiums. The form of adjusting the forces of long positions and short positions within the BitMart is funding cost rate.
4. How about canceling funding costs and adopting the form of premium?
Premium is consistent with the essence of funding cost rate. The key to both of them lies in letting one party pay a higher cost so as to maintain the balance between long positions and short positions. They just have different patterns of manifestation.
5. How’s the impact of funding cost rate on trading?
The funding cost rate has very little or no impact on traders’ positions in the short term. Only users with ultra-long positions need to calculate the gains and losses brought by funding cost rates.
ATTENTION: Cryptocurrency investment is subject to high market risk. Please make your investments cautiously. This is not investment advice, or an endorsement by BitMart as to the intrinsic value of a digital asset, or a commitment by BitMart team to support any speciﬁc asset/token that the announcement pertains to.