FAQ About Perpetual Contract

Transaction Procedure

1. What is a perpetual contract?

A perpetual contract is a product similar to a traditional Futures Contract in how it trades,  but does not have an expiry, so you can hold a position for as long as you like. Perpetual Contracts trade like spot, tracking the underlying Index Price closely. It achieves this via the mechanics of a funding component.

2. What is the mark price?

The Mark Price is the price at which the contract is marked for unrealized PNL and liquidation purposes.

3. Does BBX offer transaction leverage?

Yes, BBX Swap offers leverage on all of its contract products generally.

4. How much leverage does BBX Swap offer?

The amount of leverage BBX Swap offers varies from product to product. Leverage is determined by the initial margin and maintenance margin levels. These levels specify the minimum equity you must hold in your account to enter and maintain positions. Leverage is not a fixed multiplier but rather a minimum equity requirement. You can see the minimum Initial Margin and Maintenance Margin levels for all product here.

5. How much of the fee of the contract?

BBX encourages maker between users and traders.
As an ordinary trader, a pending order on BBX Swap will receive a 0.025% of the contract value as a maker bonus.
For the user who is the taker, he/she will be required to provide a fee of 0.075% of the contract value.

Funding

1. What is funding rate? What you can do with it?

On our Perpetual Contracts, such as BTCUSD, funding is exchanged between longs and shorts over discrete Funding Intervals. In your trade history a positive amount means you paid funding for that Funding Interval; a negative amount means you received funding.BBX does not charge any fees on funding paid or received.

2. Why do the shorts still need to pay funding when it is up?

Funding does not matter with up or down of the market situation, only matters with the emotion of both parties of long and shot in current BBX market. Such as, BTCUSD index is rising violently, meanwhile, according to the market emotion more traders prefer short, that may lead such a situation that nobody does long and the market is lack of longs.

3. Why not cancel funding rate, is it possible for traders to gamble?

Gambling needs against positions. For example, when the market emotion prefer long, the users who need to do long will not find against position then choose high premium to do long. Then adjusting long and short positions balance is what funding rate used for.

4. Is it possible to cancel funding and do positions with premium?

Premium is essentially the same with funding rate, the core of them is the same that let one part cost more to maintain the balance of longs and shorts, just different modes.

5. How funding rate affect trading?

Funding rate affects the position of traders is a little bit or nothing in a short time, only for those long-time position holders need to calculate profits and losses brought by funding rate.