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. |
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. |