Perpetual Contract User Guide

I. Accessing Perpetual Contract Trading

1. Click on "Contract Trading" on the homepage to enter the contract trading page.
2. Enter the contract trading page and log in to understand the content of each section, mainly including: contract information, order submission, order list, latest trades, position records, depth chart, etc. At the same time, the contract information panel in the lower left corner displays relevant information about the contract, listing questions you may commonly encounter during trading and index information for easy reference!

II. Trading

1. Selecting Trading Pairs

Choose a trading pair in the trading pair switching area. This mainly includes USDT contracts, coin-margined contracts, and mixed trading.

2. Fund Transfer

If your current available funds are insufficient, you can transfer funds from your spot account to your contract account. If your spot account still has no funds, you can make a deposit or engage in fiat trading.

3. Contract Settings

• Leverage: Currently, multiple adjustable leverage levels are provided for selection, with a maximum support of 125x leverage.
• Cross Margin: Also known as "cross-term margin," it refers to using all available balance in the account as margin to avoid forced liquidation. Any realized profits from other positions can help increase margin on loss-making positions. Please note that all positions are initially set to "cross margin" by default.
• Isolated Margin: The user's maximum loss is limited to the initial margin used. When a position is forcibly liquidated, any available balance will not be used to increase the margin for this position. By isolating the margin used for a position, losses can be limited to the initial margin amount, which helps you when your short-term speculative trading strategy fails. When using isolated margin, you can choose appropriate leverage. Higher leverage means less margin will be used for this position.

4. Submitting Orders

Limit Orders

Limit orders are used by traders to specify the highest or lowest prices for buying and selling, reducing trading costs by limiting order prices. However, if the order price is far from the current market price, the order may not be executed. In limit orders, users need to input the limit order price and position size.

Market Orders

Market orders are executed immediately in the current market. Traders choose this type when they need urgent order execution. When selecting this type, please pay attention to the order book, as a large market order could "break through the list," causing market impact costs. Market orders only require entering the opening value or quantity.

Conditional Orders

When price movements reach a specified trigger price, buying or selling operations are performed at the specified execution price. Traders can use this type of order to set take-profit and stop-loss for positions they already hold. They can also set orders to open positions at specified execution prices after a trigger price is reached, reducing their trading costs.

Advanced Limit Orders

• PO: "Post Only" will not immediately execute in the market, ensuring users are always Makers. If the order would immediately match with existing orders, it will be canceled.
• IOC: "Immediate Or Cancel" means any unfilled portion of your order will be immediately canceled.
• FOK: "Fill Or Kill" means the order will only be executed if it can be filled completely immediately, otherwise it will be canceled.

Buy Long

If a trader judges that the future market price will rise, they go long by buying a certain number of contracts. Going long is essentially buying contracts at an appropriate price, waiting for the market price to rise, and then selling (closing) to profit from the difference, similar to spot trading, briefly known as "buy first, sell later."

Sell Short

If a trader judges that the future market price will fall, they go short by selling a certain number of contracts. Going short is essentially selling contracts at an appropriate price first, waiting for the market price to fall, and then buying (closing) to profit from the difference, briefly known as "sell first, buy later."

Cost

Opening cost = Opening value / Leverage, which is the margin required for opening a position, denominated in the contract margin currency.

III. Positions

After opening orders are executed, positions are generated. The current position list displays all trading positions. Position information is explained as follows:

1. Available Quantity: The remaining position quantity that can be closed for the current position.

2. Cost Price: The average opening price of the current position. Each time a new position is added, the cost price is recalculated.

3. Mark Price: Our perpetual contract platform uses a uniquely designed mark price system to avoid unnecessary forced liquidations on high-leverage products. Without this system, the mark price might deviate unnecessarily from the price index due to market manipulation or lack of liquidity, leading to unnecessary forced liquidations. This system uses the mark price as the price for liquidation judgment, thereby avoiding unnecessary liquidations.

   All auto-deleveraging contracts use the fair price marking method, which only affects the liquidation price and unrealized profit, with no effect on realized profit.

   Note: This means that after your order is executed, you may immediately see positive or negative unrealized PnL. This happens because of a slight deviation between the mark price and the transaction price. This is normal and does not mean you've lost funds, but do pay attention to your liquidation price to avoid being forced into liquidation too early.

4. Liquidation Price: When the mark price reaches the liquidation price of a position, the system will close the position. Please be aware of position risk and increase margin or close positions in a timely manner.

5. Margin: Margin = Position value / Leverage

   All contracts within perpetual contracts require a certain margin, and margin trading also gives your contracts greater leverage.

   In the process of margin trading, there are several key points that need special attention:

   • Initial Margin: The minimum margin amount required to open a position. The initial margin rate (opening position value / position margin) also reflects your leverage multiple.
   • Maintenance Margin: The minimum margin requirement to maintain a position. Falling below this ratio will trigger a liquidation event or partial liquidation event.

6. PnL/Return Rate: The profit and loss of the current position calculated based on the cost price and mark price, including both settled and unsettled profits and losses. Return rate = PnL / Margin.

7. Limit Close: Limit closing requires filling in the closing price and quantity.

8. Market Close: Market closing only requires filling in the closing quantity.

9. Take Profit/Stop Loss: Each position can set take profit and stop loss based on the latest price and set trigger price as the trigger condition.

   • When the latest transaction price ≥ trigger price, take profit is triggered. After triggering, a closing order will be submitted with the order price and quantity.
   • When the latest transaction price ≤ trigger price, stop loss is triggered. After triggering, a closing order will be submitted with the order price and quantity.

IV. Contract Settings

1. Position Type: The contract supports users to choose between one-way positions and two-way positions. In one-way position mode, only one direction of position is allowed for one contract. In two-way position mode, both long and short positions can be held simultaneously for one contract.
2. Order Confirmation Dialog: Set whether a secondary confirmation dialog is needed when trading.
3. Contract Unit: The contract unit is the trading quantity unit on the front-end trading page. After modification, the trading quantity in the order area and order list on the trading page will be modified to the set contract unit.