CoinEx Perpetual Contract Trading Rules

To initiate a CoinEx perpetual contract trade, users must establish an account and fund it, selecting either a long (buy) or short (sell) position with specified leverage levels.

Nov 23, 2024 at 11:01 pm

CoinEx Perpetual Contract Trading Rules

Introduction

CoinEx Perpetual Contract Trading is a derivative product that allows traders to speculate on the future price of a cryptocurrency without taking delivery of the underlying asset. Perpetual contracts are similar to futures contracts, but they do not have a fixed expiration date. This means that traders can hold positions for an indefinite period of time.

CoinEx Perpetual Contract Trading Rules

1. Opening a Position

To open a perpetual contract position, you must first have a CoinEx account and deposit funds into your account. Once you have deposited funds, you can place an order to buy or sell a perpetual contract.

When you place an order to buy a perpetual contract, you are agreeing to buy the underlying asset at a specified price in the future. When you place an order to sell a perpetual contract, you are agreeing to sell the underlying asset at a specified price in the future.

2. Margin and Leverage

Margin is the amount of funds that you must deposit into your CoinEx account in order to open a perpetual contract position. Leverage is the ratio of your margin to the total value of your position.

For example, if you have a margin of 100 USDT and you open a perpetual contract position with a value of 1,000 USDT, then you are using 10x leverage.

3. Liquidation

If the price of the underlying asset moves against you, then you may be liquidated. Liquidation occurs when the value of your position falls below the margin that you have deposited into your CoinEx account.

When you are liquidated, your position will be closed and you will lose all of the funds that you have deposited into your CoinEx account.

4. Fees

CoinEx charges a variety of fees for perpetual contract trading, including:

• Trading fees: These fees are charged when you place an order to buy or sell a perpetual contract.
• Margin fees: These fees are charged when you borrow funds from CoinEx to open a perpetual contract position.
• Funding fees: These fees are charged every 8 hours to adjust the price of perpetual contracts to the spot price of the underlying asset.

Additional Information

In addition to the rules listed above, there are a number of other important things to know about CoinEx Perpetual Contract Trading:

• Perpetual contracts are a leveraged product. This means that you can lose more money than you deposit into your CoinEx account.
• Perpetual contracts are a volatile product. The price of the underlying asset can fluctuate rapidly, which can lead to large losses.
• Perpetual contracts are not suitable for all traders. If you are not experienced in trading derivatives, then you should consider trading other products such as spot trading or margin trading.

Conclusion

CoinEx Perpetual Contract Trading is a powerful tool that can be used to speculate on the future price of a cryptocurrency. However, it is important to understand the risks involved before you start trading perpetual contracts.