USDT-Margined Perpetual Contracts

 

1、What Are USDT-Margined Perpetual Contracts?

 

USDT-Margined Perpetual Contracts are crypto derivatives designed for crypto trading. Similar to traditional futures contracts, they have no expiration or settlement date and allow users to hold positions as long as margin requirements are met. By going long (buy) or going short (sell), users can participate in market movements. USDT-Margined Futures are settled in USDT and support leverage, enabling traders to open relatively large positions with a small amount of capital. Please note that futures trading involves high risk. The use of leverage can amplify potential returns and also losses. Before futures trading, users should carefully review the product rules, fully understand the associated risks, and participate prudently based on their own risk tolerance.

 

2、Advantages of USDT-Margined Perpetual Contracts

 

USDT-Margined Perpetual Contracts use USDT as margin. Since USDT has relatively stable value, it helps users calculate profits and losses more clearly. The same USDT balance can also be used to trade multiple futures pairs without conversion.

In addition, CoinW provides a comprehensive futures trading framework, including the Futures Protection Program, Insurance Fund, low maker fees (as low as 0.01%), advanced trading features such as position reversal and copy trading. Together, these features offer a safer, lower-cost, and more efficient futures trading experience.

 

Characteristics

• High Liquidity: Perpetual futures typically have high trading frequency and large trading volumes, ensuring smooth order execution.

• Leverage: Leverage can improve capital efficiency but also potential losses.

• Perpetual Contracts: Compared to traditional futures contracts, there's no settlement or delivery date for perpetual contracts.

 

Strengthes

1. Clear Pricing & Easier Asset Management

• Stable Settlement: Perpetual contracts are denominated in USDT, reducing exposure to volatility in the underlying crypto and making PnL closer to fiat value.

• Futures Protection Program: Provides USDT to compensate eligible users in the event of liquidation, helping reduce extreme liquidation losses.

• Insurance Fund: Acts as an insurance pool with excess funds from liquidation added to it but loses covered by it.

2. Low Fees & High Capital Efficiency

• Low Maker Fees: Maker fees can be as low as 0.01%, significantly reducing trading costs compared with the industry average.

3. Comprehensive Features

• Advanced Trading Tools: Supports position splitting and merging, as well as position reversal.

• Smart Copy Trading: Allows beginners to follow experienced traders, while lead traders can earn profit sharing, lowering the entry barrier for futures trading.

 

3、How to Trade USDT-Margined Perpetual Contracts on CoinW

 

In futures trading, you can go long or short to profit from both rising and falling markets.

Go Long: Buy a contract to profit from an expected price increase.

Go Shot: Sell a contract to profit from an expected price decrease.

 

Web

1. Log in to the CoinW website and click Futures in the top navigation bar.

New users will be prompted to open your futures account. After agreeing to the terms and clicking Confirm, you will be redirected to the trading page.

 

2. Click the trading pair on the upper-left corner and search or browse your preferred futures pairs.

3. Make sure you have sufficient USDT balance in your futures account. If not, you can click the "Transfer" icon as shown below to move funds from another account your futures account.

4. Choose margin mode and set leverage for your order.

• Cross Margin: All available funds in the futures account are shared as margin across positions.

• Isolated Margin: Margin is allocated separately for each position.

• Split Mode: Positions with the same pair and direction are displayed separately.

• Merged Mode: Positions with the same pair and direction are merged and averaged.

Position mode can only be changed when there are no open positions or active orders.

• Leverage: Leverage allows you to open a large position with a small amount of capital. During futures trading, you only need to commit a small portion of funds to open a position equivalent to 1 BTC. By comparison, spot trading does not support leverage.

Example:

If the market price of BTC is 30,000 USDT, purchasing 1 BTC in the spot market requires 30,000 USDT. In the futures market, with 100x leverage, you only need to pledge 300 USDT as margin to open a 1 BTC long position.

You can set the leverage by manually entering the desired leverage multiplier or by selecting one of the preset options shown on the page.

 

5. Choose an order type from the panel. There are four available options: limit order, market order, conditional order and advanced limit order.

• Limit Order: Executes the order at your specified price and amount.

• Market Order: Executes the order immediately at the best available price.

• Conditional Order: Executes the order when the trigger price is reached.

• Advanced Limit Order: Supports Post-Only, Fill-or-Kill (FOK), and Immediate-or-Cancel (IOC).

6. Enter your order price and amount, confirm the direction, then click Buy/Long or Sell/Short to place the order.

7. After the position is opened. You can view your position details, monitor the liquidation price or set take-profit (TP) and stop-loss (SL) under "Positions".

8. When your target profit is reached, click "Close" and choose an order type (market order, limit order, advanced limit order) or simply click "Close by Market" to close your position.

App

1. Open the CoinW app and tap Futures on the bottom navigation bar.

2. Click the trading pair on the upper-left corner and select your preferred trading pair.

3. Make sure you have sufficient USDT balance in your futures account. If not, you can click the "Transfer" icon as shown below to move funds from another account your futures account.

4. Choose margin mode and set leverage for your order.

5. Choose an order type from the panel. There are four available options: limit order, market order, conditional order and advanced limit order.

6. Enter your order price and amount, confirm the direction, then click Buy/Long or Sell/Short to place the order.

7. After the position is opened. You can view your position details, monitor the liquidation price or set take-profit (TP) and stop-loss (SL) under "Positions". When your target profit is reached, click "Close" and choose an order type (market order, limit order, advanced limit order) or simply click "Close by Market" to close your position. If you choose "Close by Market", your order will be closed at market price.

 

4、FAQ

 

1. What is going long/short in futures trading?

In spot trading, traders can profit only when an asset's price rises. However, in futures trading, traders are allowed to profit from both the rising and falling markets by going long or short.

Long: Opening a position with expectation that the price will rise.

Short: Opening a position with expectation that the price will fall.

 

2. What is liquidation?

To keep a position open, traders must maintain a minimum amount of margin, known as maintenance margin. If your position margin cannot meet the requirement, your position will be liquidated. CoinW uses a mark price mechanism to reduce unnecessary liquidations caused by low liquidity or market manipulations. A position will only be liquidated when the mark price is below the liquidation price (for log positions) or above the liquidation price (for short positions).

 

3. What is funding rate?

USDT-margined perpetual contracts have no expiration or delivery date. Instead, it uses the funding mechanism to keep the perpetual contract price anchored with the spot market price. When a price difference exists between the futures market and the spot market, traders holding positions are required to pay or receive funding fees periodically. When the funding rate is positive, long positions pay funding fees to short positions. When negative, short positions pay funding fees to long positions.

 

4. What is insurance fund?

Insurance fund is a risk management mechanism established by the platform to help maintain the stable operation of the futures market under extreme market conditions. CoinW maintains multiple insurance funds, each designed for the risk management of specific contracts. The existence of the insurance fund does not constitute any guarantee or compensation commitment for users' trading losses.

 

Risk Warning:

1. Futures trading involves high risk due to significant price volatility, which may result in significant gains or losses. The use of leverage may further amplify both potential profits and losses, potentially leading to rapid and significant losses. Users should trade prudently based on their financial tolerance.

2. Forced liquidation may result in the full closure of positions and potential losses. Users should fully understand the product rules and associated risks before making trading decisions.

3. Funding rates will fluctuate based on market volatility, which may increase the holding costs or reduce potential profits.

4. The Futures Insurance Fund, Futures Protection Program, and other platform mechanisms are operational or risk management tools only and do not constitute any guarantee or compensation for trading outcomes or losses.