Key Words: Coin-Margined Contract, Inverse Contract.
- What is a Coin-Margined Contract?
Using BTC/USDT as an example, when trading with a coin-margined contract, users use BTC as the principal to place orders; Trading fees, funding fees and unrealized P&L of the transaction are all settled in BTC.
- What is the difference between a Coin-Margined Contract and a USDT-Margined Contract?
Using BTC/USDT as an example, BTC is used as principle and settlement currency with the coin-margined contract while USDT is used with USDT-margined contract.
- How to open/ switch to the Coin-Margined Contract?
There is no need to open a new account, since funds in the Standard Contract Account will be used for the coin-margined contract. Make sure that you are using Bingbon App with/newer than the version 2.4.0 or the PC web. version.
- Switch to the Isolated-Margined mode;
- Click the trading pair at the upper left corner at the ordering page to choose the corresponding Inverse Contract BTC/USDT or ETH/USDT;
- Switch to BTC Account or ETH Account by clicking the Account button at the upperright corner of the ordering window.
- Description of the Coin-Margined Contract's underlying, leverage, and position limits
Min. Margin of a Single Trade
Max. Position of a Single Trade
Max. Position of a Single Direction
1, 5, 10, 20, 50, 100, 125
1, 5, 10, 20, 35, 50
Please note: Using BTC/USDT as an example, in order to avoid the excessive risk for users themselves, when using the 20x leverage, the maximum principal is 0.5 BTC but If you want to use more principal to place an order, you need to choose a lower leverage.
- Fee Schedule of the Coin-Margined Contract
The transaction fees of the Coin-Margined Contract is the same as that of the USDT-Margined Contract; only the settlement assets are different; the former is settled in BTC while the later is settled in USDT.
The market depth will influence the spread. The spread ratio will be adjusted based on the change of market depth.
BTC/USDT - Spread Range - 0.02% ~ 0.1%
- Trading Fee (One-Time Charge)
Calculation Method: Trading Fee = Principle * Leverage * 0.045%
For example: If an order is placed with 0.1 BTC as Principle with the 10x leverage, the trading fee is 0.1 x 10 x 0.045% = 0.00045 BTC.
- Funding Rate
Same as the USDT-Margined Contract, when a user has held a position for more than an hour, the funding rate ( charge / reward ) will be calculated.
- If the funding rate is positive, it means that the direction of the position needs to be charged for funding fee. However, if the funding rate is negative, it means that you can get a fee reward.
- Funding occurs every 8 hours at 0:00, 8:00 and 16:00 ( GMT+8 ). Users can observe the current funding rate for a contract on the “ Position” page. Funding Rates will be settled when closing a position.
- Calculation Method: Funding Fee = Total Contract Trade Size * Funding Rate. The funding rate is calculated by the platform at the time of charging.
- Market Orders & Trigger Orders of the Coin-Margined Contract
The mechanism of Market Orders and Trigger Orders with the Coin-Margined Contract is the same as that of the USDT-Margined Contract.
- Market orders consume market depth and are filled immediately. There is a certain spread because they’re placed at the real-time market price.
- "Trigger Order" is not " Limit Order". It is an automatic order tool, with which you can pre-set an order that will only be triggered under specific conditions.
- Reasons Why Trigger Orders Fail
- Trigger orders do not freeze the order principal, so after reaching the pre-set price, and your account balance is insufficient, the order will fail and the system will cancel the trigger order.
- If the market price changes too much (such as the index closing at a low price or opening at a high price), and the difference between the market price and the pre-set price is greater than 1.5%, the trigger order will fail and the system will cancel the order.
- In which account should funds be transferred for Coin-Margined Contract trading?
Funds in the [Standard Contract Account] will be used for the coin-margined contract. Deposited Funds will be in [Fund Account]. Users need to transfer the corresponding asset from [Fund Account] to [Standard Contract Account] before trading coin-margined contracts.
- Where can I view the history trades of the Coin-Margined Contract?
Click the [Orders] button at the lower right corner of the ordering page; Switch to BTC Account or ETH Account by clicking the Account button at the upper left corner on the [Orders] page; Click the icon as shown in the screenshot below to view the history trades.
- Example of calculating P&L for the Coin-Margined Contract
Transaction Direction: 1 refers to Long, -1 refers to Shorts.
= [Principal * Leverage * Exchange Rate When Position Opens * (Closing Price-Opening Price) / Closing Price] / Exchange Rate When Position Closes
= Transaction Direction * Principal * Leverage * Opening Price * (1 / Opening Price-1 / Closing Price)
Gross P&L Ratio = Transaction Direction * Leverage * Opening Price * (1 / Opening Price-1 / Closing Price)
Net P&L = Transaction Direction * Principal * Leverage * Opening Price * (1 / Opening Price-1 / Closing Price)-Trading Fee-Funding Fee
Please note: There is a characteristic for BTC/ETH Inverse Contract. When the price rises, the profit (loss) goes slow; when the price falls, the profit (loss) goes fast.
Examples are as follows:
1) If the price rises by 100%, the income is 50% (Transaction Direction: Long; Leverage:1X; BTC Price 100 → 200).
2) If the price rises by 100%, the loss is 50% (Transaction Direction: Short; Leverage:1X; BTC Price 100 → 200).
3) If the price falls by 50%, the loss is 100% (Transaction Direction: Long; Leverage:1X; BTC Price 100 → 50).
4) If the price falls by 50%, the income is 100%(Transaction Direction: Short; Leverage:1X; BTC Price 100 → 50).
Calculate with the example of 2) :
Gross P&L Ratio
= Transaction Direction * Leverage * Opening Price * (1 / Opening Price-1 / Closing Price)
= -1 * 1 * 100 * (1/100-1 / 200)
🔼 Calculation of Forced-Liquidation for the Coin-Margined Contract in Isolated-Margin mode
The following calculation example is based on the BTC-Margined Contract.
When the Net P&L reaches -90%, the Forced-Liquidation will be triggered.
Liquidation Price = Transaction Direction * Principal * Leverage * Opening Price / (0.9 * Principal + Transaction Direction * Principal * Leverage - Trading Fee - Funding Fee)
Please note: Due to the difference in P&L, even with the same parameters, the Liquidation Price will be different between USDT-Margined orders and Coin-Margined orders.
USDT-Margined, Long, 1x, Opening Price 100 USDT; Liquidation Price = 10 USDT.
BTC-Margined, Long, 1x, Opening Price 100 USDT; Liquidation Price = 52.63 USDT.
- Is Cross-Margin Mode available with the Coin-Margined Contract?
Cross-Margin Mode is temporarily not available with the Coin-Margined Contract. Please stay tuned for the updates in the future.