ProBit Global Perpetual Contract Trading Rules

ProBit Global's perpetual contract trading rules provide traders with a framework for responsible and transparent engagement in derivatives markets.

Nov 25, 2024 at 08:54 am

ProBit Global Perpetual Contract Trading Rules

Introduction:

Perpetual contract trading is a derivative that enables traders to speculate on the future price of an underlying asset without an expiry date. ProBit Global is one of the leading exchanges offering perpetual contract trading services. These rules govern the conduct of perpetual contract trading on the ProBit Global platform.

1. Eligibility and Registration:

• To trade perpetual contracts on ProBit Global, traders must meet the eligibility requirements set forth by the exchange.
• Traders are required to register an account with ProBit Global and complete the KYC (Know-Your-Customer) process.
• Only verified accounts are permitted to participate in perpetual contract trading.

2. Trading Instruments and Margin:

• ProBit Global offers a range of perpetual contract trading instruments based on underlying assets such as cryptocurrencies, indices, and commodities.
• Each trading instrument has its own unique margin requirements, which are expressed as a percentage of the contract value.
• Traders are responsible for maintaining sufficient margin to support their open positions.

3. Order Types and Market Structure:

• ProBit Global supports various order types, including market orders, limit orders, stop orders, and conditional orders.
• The market structure for perpetual contracts is based on a centralized order book.
• Orders are matched by the exchange's matching engine based on the best available price and quantity.

4. Leverage and Risk Management:

• Perpetual contracts allow traders to use leverage to amplify their potential returns.
• ProBit Global offers customizable leverage options for each trading instrument.
• Leverage increases the potential rewards but also magnifies the risks associated with trading.
• Traders are advised to carefully manage their leverage and implement appropriate risk management strategies.

5. Settlement and Funding Rate:

• Perpetual contracts have no expiry date and, therefore, do not require physical settlement.
• Instead, traders are subject to a funding rate mechanism that ensures that the perpetual contract price moves in line with the spot market price.
• The funding rate is a settlement payment made by traders in long positions to traders in short positions or vice versa.

6. Liquidation and Close-Out:

• Positions may be subject to liquidation if the margin balance falls below a certain threshold known as the maintenance margin.
• Liquidation occurs when the exchange forcefully closes all open positions to minimize the exchange's risk.
• Close-out is another mechanism used to resolve margin imbalances or other unforeseen circumstances.

7. Fees and Commissions:

• ProBit Global charges trading fees for both market makers and market takers.
• The fees vary depending on the trading instrument, the level of activity, and the trader's VIP status.
• Traders are responsible for paying any fees associated with their trades.

8. Compliance and Regulation:

• ProBit Global is committed to operating a compliant and regulated exchange.
• The exchange adheres to all applicable laws and regulations in the jurisdictions in which it operates.
• Traders are expected to comply with all applicable laws and regulations governing perpetual contract trading.