How to Trade
- You can place orders by pressing the
Sell/Shortbuttons under the Trade dashboard.
- When you place an order, the system will check if you have enough Available Balance to keep the Initial Margin. If you have an existing position, the system will also check if you have enough available balance to cover the change in Maintenance Margin and PNL when the position is priced at the order price. If you have enough funds, the order will be allowed to place.
- Net active orders that have not been filled or canceled will reduce the available balance by the initial margin of those net orders.
Margin and PNL
Before you are able to start trading, you have to deposit Bitcoin or USDT to fund your margin account. All margins and PNL are handled in Bitcoin Or USDT at BaseFEX. You should first check the Margin Terminology.
Futures and Perpetual Contracts
Here are some rules about Initial Margin:
- For Buy/Long orders,
required Initial Margin = (IM * Contracts * Limit Bid Price * Multiplier). Commission is reserved using the limit bid price. But the actual commission paid will be calculated based on the final execution price.
- For Sell/Short orders,
required Initial Margin = (IM * Contracts * Max (Limit Offer Price, Best Bid) * Multiplier). Commission is reserved using the limit offer price or the best bid for that contract, which is higher. The actual commission paid will be calculated based on the final execution price.
- You will not be charged initial margin if your order will reduce your position size.
- If you have both Buy/Long and Sell/Short orders in the market, the Initial Margin will only be charged on the net amount of Buy/Long orders (
Buy orders - Sell orders). The Sell/Short orders will still be charged initial margin unless they reduce the current position size. For example, if you bid to buy 20 contracts for $100 and offer to sell 15 contracts for $150, you will only be charged initial margin on your net bids of 5 contracts (
20 - 15) and on your offers of 15 contracts.
- If a contract uses Fair Price Marking, the Initial Margin will be calculated differently. If a Buy/Long order is placed above the mark price, or if a Sell/Short order is placed below the mark price, then you must fully fund the difference between the order price and the mark price. For example, if the mark price is $100 and you submit a Buy/Long order for 10 contracts at $110, then the initial margin required =
(IM * 10 contracts * $110 * Multiplier) + (100% * 10 contracts * ($110 - $100) * Multiplier).
Maintenance Margin (MM) is calculated based on the Mark Price of that contract.
For all positions,
required Maintenance Margin = (MM * Contracts * Mark Price * Multiplier). The amount of commission applicable to close out all your positions will also be added onto your maintenance margin requirement. This is the minimum amount of margin you must maintain to avoid liquidation on your position .
Funding and Settlement
- Perpetual Contracts at BaseFEX are subject to Funding. You can check specific Contract Specifications and Funding History for further information.
- When the settlement occurs, the position will be closed at the settlement price.
- The Perpetual Contract does not settle at any time, so settlement fees are not applicable here.
- If your contract has expired, the lifetime profit and loss of that contract will be added to your Bitcoin balance, and this contract will no longer be on the Position Section.
- All calculations done at BaseFEX are final.
Market Disruption Event (MDE)
- In the event that an exchange which contributes to the Index Price experiences an outage, BaseFEX might declare a MDE and will inform you how the settlement or expiry date of related contracts will be changed.
- You will receive an e-mail announcement, and the declaration of a MDE will be displayed on the Trade dashboard.
- The declaration of a MDE is at full discretion of BaseFEX, and all decisions here are final.