Terminology and Understanding of Product
- 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 is set for each contract up to 100:1
2X, 5X, 10X, 20X, 50X, 100X leverage levels can be applied by contracts.
| 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. |
| Underlying | BTC | ETH | EOS | LTC | BCH | XRP |
|---|---|---|---|---|---|---|
| Commissions | 0.07% | |||||
| Base | 0.0001BTC | 0.001ETH | 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 |
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| 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. |
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| 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) |
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| 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. |
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