There are some trading rules that need to be followed for perpetual contracts. Here are a few important rules:
1. Funding rate rules
In order to avoid excessive price fluctuations, perpetual contracts will charge funding rates to long or short parties at regular intervals. When the market price is higher than the index price, the short party needs to pay the funding rate to the long party. When the market price is lower than the index price, the long party needs to pay the funding rate to the short party. (See comments for communication) + group
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2. Trading leverage rules
The exchange will provide different leverage multiples, and traders can use leverage to use less funds to make larger transactions. However, using too much leverage may bring greater risks and losses, and traders should carefully choose the appropriate leverage multiple.
3. Margin rules
Margin is a certain amount of digital currency that needs to be deposited in the transaction to guarantee the trader's transaction. The exchange will set different margin requirements according to the trader's leverage multiple. Traders need to ensure that the total margin in the account is not less than the minimum margin level required by the exchange.
4. Forced liquidation rules
If the trader's account value is lower than the required margin to a certain extent, forced liquidation will occur. At this time, the exchange will automatically force the trader's position to close in order to protect the interests of the exchange and other traders. Traders should always pay attention to their account balances to avoid forced liquidation.
Conclusion
Perpetual contracts are high-risk and high-reward derivatives, requiring traders to carefully consider their investment risk tolerance. When trading perpetual contracts, strengthen risk control and strictly abide by trading rules to reduce investment risks.