USDⓈ-M Perpetual Futures is a cryptocurrency derivative product that is quoted and settled in the pricing currency. Users can analyze the market conditions and buy long or sell short so as to get profits from the rise/fall of prices. There is no delivery date for perpetual futures and it will keep up with the price of the underlying spot index through the funding fee mechanism.

Trading Type

Now, FameEX offers USDT Perpetual Futures trading zone. USDT Perpetual Futures are denominated and settled in USDT.

Trading Time

The Perpetual Futures allows 7*24 hours of trading and is settled every 8 hours, respectively at 00:00 (UTC+8), 8:00 (UTC+8), and 16:00 (UTC+8) every day. During the settlement period, the trading will be suspended, and the range of the interrupted transaction depends on the settlement time of the system.

Collateral Mode

Collateral mode refers to the composition of the margin. It is divided into single-currency margins and multi-currency margins.

1. Single-currency margin

Only the corresponding pricing currency can be used as a margin for transactions in the trading areas. For example, only USDT can be used as a margin for the USDT Perpetual Futures trading. It supports both cross-margin and isolated-margin positions.

2. Multi-currency margin

All currencies supported by the platform can be used as margins for contract trading, but it supports the cross-margin mode only.

Margin Mode

The margin mode is risk management for the proportion of positions held when you make an investment. You may select the most suitable margin mode according to various factors such as capital scale, market volatility, and risk acceptance. In derivatives trading, the margin mode is divided into the isolated margin and cross margin.

1. Isolated Margin Mode

The isolated margin mode means that the indicators of each position are calculated independently and do not affect each other. In the isolated margin mode, the margin can be allocated separately for the specified position. When a position is liquidated, it will only affect the margin of this position, and the margin of other positions will not be affected.

2. Cross Margin Mode

The cross margin mode means that all positions share the margin in the derivatives account. In the cross-margin mode, if a certain position gets liquidated, it may lead to insufficient margin for other positions, resulting in chain-liquidated reactions.

Position Mode

The position mode refers to the holding way after the order is completed, and it is also the investment judgment when opening or closing positions. FameEX offers two modes: One-way Mode and Hedge Mode.

1. One-way Mode

One-way mode owns only one direction under the same contract symbol; that is, only long positions or only short positions can be held, and the profits and losses will offset each other. In the one-way position mode, users can choose the [Reduce-Only] order as this order type will only reduce the position holding, but will not increase the position holding, so as to avoid reverse positions.

2. Hedge Mode

Hedge mode allows holding long positions and short positions simultaneously under the same contract symbol, and the profits and losses do not offset each other. Positions in different directions under the same symbol can be risk hedged.

Leverage

FameEX supports up to 200x leverage for contract trading. Leverage is required before opening a position. The higher the leverage you choose, the less margin you need, but the higher the risk of your position. Please assess risks carefully and choose appropriate leverage for trading.

After opening a position, the user can adjust the current leverage of the position if there are no open orders.

For example, if the user needs to open a BTCUSDT position with 20x leverage, then only a 10 USDT margin is required to open a long/short BTC position worth up to about 200 USDT for more profits.

Order Type

FameEX currently supports the following order types: limit order, market order, TP/SL (one-way mode & hedge mode), Conditional order, and Post-only order. View more >>> https://www.fameex.com/en-US/support/swap/futures-order-types

1. Limit Order

A limit order means that the user sets the order quantity and the acceptable highest bid price or lowest ask price. The limit order will be executed only when the counterparty's order in the order book meets the limit price range.

2. Market Order

A market order means that the user executes buying or selling immediately at the best price in the market, so as to achieve the purpose of quick trading.

3. Conditional Order

A trigger order means that the user can pre-set trigger conditions, price and quantity. When the market price reaches the trigger condition, the system will place an order based on the order price and quantity set in advance.

4. Post Only

After the order is placed, it will not be matched in the market immediately. If the order is filled immediately, the order will be canceled to ensure that the user is a Maker.

5. TP/SL (Take Profit / Stop Loss)

A TP/SL order is a closing order with trigger conditions (take-profit price or stop-loss price) and a price set in advance. FameEX supports one-way mode and hedge mode for the TP/SL order

Market Mechanism

FameEX adopts a matching mechanism to match orders according to price first and time second. When the risk rate reaches 100%, it will trigger forced deleveraging or liquidation.

Risk Rate = Maintenance Margin / Margin Balance * 100%