BitMart Perpetual Contract Trading Rules

To initiate a perpetual contract position on BitMart, traders must fund their account with sufficient margin (minimum 10%) and input their preferred contract size and price.

Nov 23, 2024 at 03:28 am

BitMart Perpetual Contract Trading Rules

Perpetual contracts, also known as perpetual futures, are derivative financial instruments that allow traders to speculate on the future price of an underlying asset without having to take physical delivery of the asset. They are similar to futures contracts, but there is no fixed expiry date for perpetual contracts. This means that traders can hold their positions indefinitely, or until they choose to close them.

BitMart is a cryptocurrency exchange that offers perpetual contract trading on a variety of digital assets, including Bitcoin, Ethereum, and Litecoin. The exchange's perpetual contract trading rules are designed to provide a fair and orderly trading environment for all participants.

Before trading perpetual contracts on BitMart, it is important to understand the following rules:

Opening a Position

• To open a perpetual contract position, traders must first fund their account with a sufficient amount of margin. Margin is a deposit that serves as collateral for the trader's position. The minimum margin requirement for perpetual contracts on BitMart is 10%.
• Once the trader's account has been funded, they can open a position by selecting the desired contract size and entering the desired price. The contract size is the number of units of the underlying asset that the trader is speculating on. The price is the price at which the trader is willing to buy or sell the contract.
• After the trader has entered the desired contract size and price, they can click the "Buy" or "Sell" button to open the position.

Managing a Position

• Once a perpetual contract position has been opened, the trader can manage the position by adjusting the margin, adding or reducing the contract size, or taking profit or loss.
• To adjust the margin, the trader can add or withdraw funds from their account. The margin requirement for a perpetual contract position can change depending on the market conditions. If the market price moves against the trader's position, the trader may be required to increase their margin in order to maintain their position.
• To add or reduce the contract size, the trader can enter a new order with the opposite contract size. For example, if the trader has a long position of 10 contracts, they can enter a short position of 5 contracts to reduce their position size to 5 contracts.
• To take profit or loss, the trader can close their position by entering an order with the opposite contract size and price. For example, if the trader has a long position of 10 contracts at $10,000, they can close their position by entering a short position of 10 contracts at $10,500.

Closing a Position

• To close a perpetual contract position, the trader must enter an order with the opposite contract size and price. For example, if the trader has a long position of 10 contracts, they can close their position by entering a short position of 10 contracts.
• Once the trader has entered the opposite order, the position will be closed and the trader will receive or pay the profit or loss on the position.

Additional Rules

• BitMart may impose additional rules on perpetual contract trading, such as limits on the maximum contract size or the maximum number of open positions per trader.
• BitMart reserves the right to change these rules at any time.
• Traders are advised to carefully review the BitMart Perpetual Contract Trading Rules before trading perpetual contracts on the exchange.