Introduction of Hotcoin Perpetual Swap

1. Introduction

Hotcoin Perpetual swap is a kind of derivatives like the leveraged spot transaction , It is a virtual contract product settled in BTC currencies. Investors can buy-in long positions to obtain the profits generated from virtual digital currency price moved up, or sell-out short positions to obtain the profits from virtual currencies. There are some differences between perpetual contract and traditional futures:

① Perpetual Swap has no expiration date so it has no limitations to position holding time.

② In order to guarantee the tracking price index of the underlying, the perpetual contract ensures the prices of its own to keep in a consistency with prices of the underlying asset through mechanism of the funding cost .

2. Mechanism

While trading a perpetual contract, traders need to understand several mechanisms of the perpetual market. There are several key points for traders to pay attention to :

• Position Mark: Perpetual contract adopting the fair price marking method.The marked price decided the unrealized P/L and forced liquidation price.
• Initial Margin: It decides the percentages of margin service fee rate to open position
• Maintenance Margin: Maintenance margin is the level of margin required to maintain a position at the minimum degree.
• Funding Fee: Funding：The buyer and seller pay the fee periodically every 8 hours. If the funding rate is positive, long positions will pay the funding and short positions will get it; if the funding rate is negative, short positions will pay the funding and long positions will get it. Please be kindly noticed that you’re only required to pay or being collected the funding fee when you’re holding positions at certain funding timestamps.
• Funding Timestamp: UTC 4:00 (Singapore time 12:00), UTC 12:00 (Singapore time 20:00) and UTC 20:00 (Singapore time 04:00).

For Funding Fee Rate History Please See On Pages Of  Funding Fee Rate History