Content of this article:
1. Introduction of XT USD-M Futures
2. The market mechanism of perpetual contracts
5. Explanation of key terms of funds
1. Introduction of XT USD-M Futures
XT USD-M Futures is a virtual contract product launched by XT to settle with USDT. Each contract represents a certain amount of digital currency (such as a BTCUSDT perpetual, each contract represents 0.01BTC), and investors can buy multi-contracts to obtain the benefits of the rise of virtual digital currency prices or obtain virtual digital currency gains by shorting.
2. The market mechanism of perpetual contracts
When trading perpetual contracts, traders need to understand several mechanisms of the perpetual market. The key parts that you need to pay attention to when trading are:
- Position Marking: Perpetual swaps use the fair price marking method. The marked price determines the unrealized profit and loss and the liquidation price.
- Initial Margin: Determines how much leverage you can use to open a position.
- Maintenance Margin: Maintenance margin is the minimum level of margin required to maintain a position.
- Funding Fee: A fee is periodically paid every 8 hours between buyer and seller. If the rate is positive, long positions will pay and short positions will receive the funding costs, and vice versa if the rate is negative.
Note that you only pay or receive funding fees if you hold a position at the time of the exchange timestamp.
Traders can see the current funding rate of the market in the "funding rate" indicator column of the market header.
3. Funding costs
Exchange time: 00:00 (UTC+8), 08:00 (UTC+8), 16:00 (UTC+8)
The value of your position is independent of leverage. For example, if you hold 100 BTCUSDT contracts, funds will be charged/disbursed based on the notional value of those contracts, not based on how much margin you have allocated for the position.
Traders can see the current funding rate of the market in the "funding rate" indicator column of the market header.
The relationship between XT perpetual contracts and funding fees:
XT perpetual contracts do not charge any funding fees; funding fees are collected between users. When the funding rate is positive, longs pay shorts; when the funding rate is negative, shorts pay longs.
4. Handling fee
XT fees are as follows (standard users):
- Maker fee: 0.04%
- Taker fee: 0.06 %
Note: If the contract fee is negative, the corresponding fee will be returned.
5. Explanation of key terms of funds
- Wallet balance = transfer in money - transfer out money + realized profit and loss
- Realized profit and loss = total liquidation profit and loss + total handling fee + total funding fee
- Total equity = wallet balance + unrealized profit and loss
- Position margin = funds guaranteed for operating positions, generally including the user's all position margins
- Entrusted margin = frozen funds for all active orders;
- Available = Wallet Balance - Position Margin - Order Freeze
- Net asset balance = funds available for user fund transfer and newly opened positions
- Unrealized Profit and Loss = Sum of all floating Profit and Loss
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