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CONTRACT TRADING GUIDE

Terminology and Understanding of Product

Cryptocurrency Swap Contracts

- Unlike traditional trading (i.e. stock trading), futures trading allows both long and short positions to open.
Swap contracts are derivative products of the underlying cryptocurrency. The types of positions: buy to open, sell to open, buy to close, and sell to close.

- Traders can take advantage of these long and short positions for both market directions (up or down).

- Wisebitcoin offers perpetual swap contracts based in USDT as well as coins.

Type Products Expiration Fees
USDT Perpetual Swap BTC-SWAP-USDT
BCH-SWAP-USDT
ETH-SWAP-USDT
EOS-SWAP-USDT
LTC-SWAP-USDT
XRP-SWAP-USDT
Perpetual Maker 0.07%
Taker 0.07%
Coin Perpetual Swap BTC-SWAP
BCH-SWAP
ETH-SWAP
EOS-SWAP
LTC-SWAP
XRP-SWAP
Perpetual Maker 0.07%
Taker 0.07%
Leverage

Leverage is set for each contract up to 100:1
2X, 5X, 10X, 20X, 50X, 100X leverage levels can be applied by contracts.

Glossary
Terms Description
Base Currency Base currency of the pair. BTC is the base currency for BTC/USDT contract.
Quote Currency The currency quoting the base currency. USDT is the quote currency for BTC/USDT contract.
Settlement Currency 1. Currency used for withdrawal 2. Currency used to enter position 3. Currency expressed for realized and unrealized profit/loss.
Initial Margin Margin requirements for new positions.
Maintenance Margin Margin requirements for existing positions.
Margin Call Margin call is triggered when the equity balance falls below minimum margin requirements.
Leverage Leverage is created to take positions more than the balance held in the margin account.
Funding rate or rollover Funding occurs every 8 hours: You will only pay or receive funding if you hold a position at one of these times.
Maker The party who puts in Order with a set price and quantity.
Taker The party who takes the market price for a trade.
Stop order Stop orders are used to limit losses with a stop-loss or lock in profits using a bullish stop
Limit order A limit order guarantees that an order is filled at or better than a specific price level.
USDT Settled Swap Contracts
Underlying BTC ETH EOS LTC BCH XRP
Commissions 0.07%
Base 0.0001BTC 0.01ETH 1EOS 0.01LTC 0.01BCH 1XRP
Minimum Change 0.1 0.01 0.001 0.01 0.01 0.0001
Trading Hours/Days 24/7
Deposit/Withdrawal Currency USDT
Leverage 1:1 ~ 100:1 1:1 ~ 50:1
Funding Rate (Rollover) UTC 04:00, 12:00, 20:00 settlement (Long/Short ratio applies)
Swap Contracts USDT is used for quote/settlement currency.
Example:
BTC/USDT Contract
Base Currency Quote Currency Settlement Currency
BTC USDT BTC
Description
Formulae
One Contract : 0.0001BTC
Unit Price : 0.0001BTC*BTC / USDT
One Contract value is always 0.0001BTC
1 Contract Value for BTC changes based on BTC price quoted in USDT
P&L
1) Long Position = (Latest Price – Average Open Price) * Position Size (Num of Contracts) * Contract Multiplier
2) Short Position = (Average Open Price – Latest Price) * Position Size (Num of Contracts) * Contract Multiplier
P&L settles in USDT
Advantage USDT is coin pegged to USD.
Trades done with USDT are more stable and less volatile.
This is due to the stability in USD regardless of the base currency coin.
Crypto Currency Settled Swap Contracts
Underlying BTC ETH EOS LTC BCH XRP
Commissions 0.07%
Base 1USDT 1USDT 1USDT 1USDT 1USDT 1USDT
Minimum Change 0.1 0.01 0.001 0.01 0.01 0.0001
Trading Hours/Days 24/7
Deposit/Withdrawal Currency BTC ETH EOS LTC BCH XRP
Leverage 1:1 ~ 100:1 1:1 ~ 50:1
Funding Rate (Rollover) UTC 04:00, 12:00, 20:00 settlement (Long/Short ratio applies)
Swap Contracts Same cryptocurrency is used for base/settlement currency.
Example:
BTC/USDT Contract
Base Currency Quote Currency Settlement Currency
BTC USDT BTC
Description
Formulae
One Contract : 1 USDT
1 Contract value is always 1BTC
P&L
1) Long Position = Position * Contract Multiplier * (1/ Open Price – 1/Latest Price)
2) Short Position = Position * Contract Multiplier * (1/ Latest Price – 1/Open Price)
P&L settles in BTC
Advantage BTC is used to calculate P&L as well as the settlement currency.
You can profit from BTC’s increase regardless of the base currency.