CoinBene Perpetual Contract Guide
Ⅰ：What is the CoinBene Perpetual Contract?
The perpetual contract is futures contract with no expiry or settlement. Each contract is worth 1 USD and traders can hold open positions for as long as they want. Futures contracts are essentially bets on the future state of something. These things are typically commodities. However，on cryptocurrency exchanges like CoinBene, future contracts are bets on the future value of a cryptocurrency (like BTC, LTC, BCH, EOS, ETH, and other very liquid cryptocurrencies). In one word, futures contracts are derivative financial instruments
Ⅱ、Why choose Perpetual Contract to trade?
As mentioned above, perpetual contract focus on the future market, providing more trading room for buyers and sellers in cryptocurrencies market. It has some benefits spot trading fail to offer since traders can only gain profit from the increased price of certain digital cryptocurrency. Perpetual contract allows users to gain even when the market is going downside. More specifically, if you think BTC price will increase, you can buy a bullish contract , which is also to be known as Long; on the contrary, if your judgment tells you that BTC price will decrease, you can buy a bearish contract, which is also known as Short.
Additionally, in a perpetual contract one can use leverage. Leverage trading offers investors the ability to trade not only using personal account capital but also others’ money which is loaned to. One can gain more profit or loss more through the use of leverage. For example, if you have one BTC (worth 4000 USDT) onto a futures exchange, and you would like to trade using 2x leverage with one BTC, it means you would be able to purchase 2 BTC’s worth of futures contracts. For every 1% that the price moved in your favor, you would gain 2% of your original investment (one BTC). However, if the price does not move in your favor, you would lose 2% of your original investment instead of 1%. Everyone needs to keep in mind that the higher the leverage is, the more gain and loss will be.
Ⅲ、What’s special of CoinBene Perpetual Contract?
Of all the benefits that matter, the most important advantage is that we will guarantee the safety of your security deposit. Only forced liquidation will happen when your margin is below 0.5%. Secondly, we offer the lowest trading fee standard. Only 0.03% trading fee will be charged for each successful trade order. Meanwhile, our exchange has wonderful liquidity and depth, offering all trader the opportunity to be a market maker with the highest commission each market maker will gain 0.03% trading fee as commission for each successful trade order. Last but not least, based on excellent perpetual contract system mechanism, there will be no room for ‘intense price fluctuation’ and ‘Loss sharing’. In this way, we can guarantee that the market is not available for manipulation and profit will be a record in your account rather than diminishing in the system.
Ⅳ、Only above advantages in CoinBene perpetual contract?
The answer is definitely NOT. You need to have a better understanding of the product and then you will know more advantages it has. For instance, you need to understand how to calculate the margin? How to calculate the unrealized profits and loss & realized profits and loss? You will gain more insights after a better knowledge of CoinBene perpetual contract.
