How to Contract Trade on Phemex

At Phemex, users can use two different base currencies to trade all contracts. For BTC-based contracts, each contract is worth $1 Bitcoin ($1/current BTC price). Profits and losses are calculated in relation to the BTC value of the contract. Winnings are the difference between the contract value at the opening price (1 USD / Open BTC price) and the contract value at the closing price (1 USD / CLOSE BTC price) multiplied by the amount. The losses are equal to the difference between the contract value at the closing price (1 USD/closing BTC price) and the contract value at the opening price (1 USD/Open BTC price) multiplied by the quantity. Both functions are nonlinear, which means that both do not have a constant rate of change. For USD-based contracts, the value of each contract is not predetermined. For example, in ETHUSD contracts, each contract is worth the equivalent of 0.005 ETH, and for XRPUSD, each contract is worth the equivalent of 5 XRP. Profits and losses are calculated on the basis of the contract value in USD: both correspond to the difference between the closing price and the opening price, multiplied by the amount. Both functions develop linearly and have constant rates of change. A futures contract is simply an agreement between two parties to sell or buy an asset at a fixed price at a predetermined “future” date. Imagine two investors entering into one of these contracts, the underlying asset being Bitcoin.

One promises to sell Bitcoin at an agreed price, while the other promises to buy it. At the time of the expiry of the contract, both must keep their promise, regardless of the price of Bitcoin. If the future price is higher than the originally agreed price, the seller loses and the buyer wins. The opposite is true when the price drops. In the context of trading on Phemex, it is important to know that traders who invest in perpetual contracts do not actually need to hold the underlying asset (in this case, Bitcoin). Profit can be made by correctly predicting the movement of bitcoin prices, as these contracts are designed to reflect the price of their underlying assets (for more information on this process, see What is a funding rate?). Once the contract is executed or concluded, Phemex allows you to pay the price difference in USD or BTC. The main advantage of open-ended contracts is that you are allowed to hold them indefinitely. The lack of an expiration or execution date means that even if prices move against your position, you won`t be stuck with a losing trade right away. Instead, as long as you have enough money to hold your positions, you can continue to hold and wait for prices to come back in your favor. View the financing history to learn more about the financing history of perpetual contracts on Phemex. Join our community on Telegram to interact with us and other Phemex traders.

A perpetual contract is a derivative that is similar to a traditional futures contract (an agreement to buy or sell a commodity at a predetermined price at a specific time in the future), but with one main difference: unlike futures contracts, open-ended contracts do not have an expiry date, so you can hold a position for as long as you want. In addition, perpetual contracts mimic the margin-based spot market and therefore trade close to the index price. This allows you to amplify the company`s bottom line, but it also means that lowering the price of a commodity that matches your initial margin (the percentage of total funds you provided as collateral) will automatically liquidate your equity and close your position. BTC Perpetual contracts and USD Perpetual contracts. In summary, the main features of perpetual contracts are: if you want to trade with the BTC trading account, you must first buy or deposit BTC and transfer it to the account. After making a deposit in the BTC wallet, users must then transfer or fund the individual trading accounts they wish to trade with. Click here to read more information about financial trading accounts. For contracts settled in BTC, users can trade with their BTC trading account. For contracts settled in USD, users can trade through their USD trading account.

First, you need to transfer money to the appropriate contract trading account. Different contract trading accounts support different types of assets. For example, a BTC contract trading account requires BTC to be transferred from your spot wallet. Since Phemex does not currently support USD deposits, to transfer to a USD contract trading account, you must first convert the USD assets in your spot portfolio. Once the funds are transferred from the spot wallet to the contract trading account, you can start trading contracts. Before you start trading contracts, it`s important to understand the difference between a futures contract and a perpetual contract. .