OUYI Perpetual Contract

Leverage options on Ouyi Perpetual Contracts range from 1x to 100x or higher, allowing traders to amplify potential profits and losses.

Jan 27, 2025 at 01:37 am

Key Points of Ouyi Perpetual Contract

• Contract Type and Parameters
• Trading Procedure
• Risk Management and Leverage
• Platforms and Availability
• Fees and Funding
• Perpetual Contracts vs. Spot Trading

Contract Type and Parameters

• Contract Size: Typically ranges from $1 to multiple thousands of dollars per contract.
• Margin: Traders use margin to hold positions with leverage, increasing their exposure to market movements.
• Leverage: Ouyi offers leverage options from 1x to 100x or higher for perpetual contracts.
• Settlement Price: The price at which a contract expires and is settled.
• Funding Rate: A periodic fee paid or received by traders based on the contract's premium or discount.

Trading Procedure

• Open Positions: Traders can initiate a long (buy when expecting price increases) or short (sell when expecting price decreases) position in a perpetual contract.
• Margin Adjustment: If the position moves against the trader, they will be required to add margin or face liquidation.
• Take Profit and Stop Loss: Traders can set target prices to automatically close positions when reaching profit or loss thresholds.
• Liquidation: If the margin balance falls below the required level, the position will be liquidated to cover the losses.

Risk Management and Leverage

• Risk Adjustment: Traders should carefully assess their risk appetite and trade within their risk management capabilities.
• Leverage Considerations: While leverage can magnify potential profits, it can also amplify losses.
• Market Volatility: Perpetual contracts are sensitive to market fluctuations, and traders should be prepared for rapid price swings.
• Monitoring and Adjustment: Traders should closely monitor their positions and adjust their risk management strategies accordingly.

Platforms and Availability

• Ouyi Web Plattform: Ouyi's web platform provides a comprehensive user interface for perpetual contract trading.
• Ouyi Mobile APP: The Ouyi mobile app offers a convenient and accessible trading experience.
• Third-Party Platforms: Ouyi's perpetual contracts can also be accessed through selected third-party trading platforms.

Fees and Funding

• Trading Fees: Ouyi charges a maker fee for adding liquidity and a taker fee for taking liquidity from the order book.
• Funding Rates: Funding rates are based on the demand and supply of the perpetual contracts.
• Withdrawal and Deposit Fees: Ouyi may charge fees for withdrawing or depositing funds to and from trading accounts.

Perpetual Contracts vs. Spot Trading

• Settlement: Perpetual contracts do not have a defined expiry date, unlike spot contracts that settle on a specific date.
• Leverage: Perpetual contracts typically offer higher leverage options compared to spot trading.
• Price Basis: Perpetual contract prices are based on futures market expectations, while spot prices represent the current market value.
• Trading Fees: Perpetual contract trading fees can vary significantly from spot trading fees.

FAQs

• Q: What is the minimum margin size for a perpetual contract?

  • A: The minimum margin size varies depending on the contract size and leverage level.

• Q: How is the funding rate calculated?

  • A: The funding rate is calculated based on the difference between the perpetual contract price and the spot price.

• Q: What is the risk of liquidation in perpetual contract trading?

  • A: Liquidation occurs when the margin balance falls below the maintenance margin level.

• Q: Can I trade perpetual contracts in multiple cryptocurrencies?

  • A: Yes, Ouyi offers perpetual contracts in various cryptocurrencies, including BTC, ETH, and LTC.

• Q: Is perpetual contract trading suitable for beginners?

  • A: Perpetual contract trading is not recommended for beginners due to its inherent risk and complexity.