What is a Futures Contract?
A Futures Contract is an agreement to buy or sell a commodity, currency, or other instruments at a predetermined price at a specific time in the future.
What is a Perpetual Contract?
A Perpetual Contract is similar to a traditional futures contract in terms of trading, yet it will not expire so that you can hold a position for as long as you wish. The Perpetual Contract at BigONE tracks the underlying Index Price.
It achieves this via a Funding mechanism.
What is Mark Price?
Mark Price means the price where the contract is marked for its Unrealized PNL calculation and for Liquidation purposes.
How does BigONE calculate the Settlement Price?
Settlement Price is the price where a futures contract settles. To avoid price manipulation, BigONE takes an averaging over some time before the settlement, yet this time frame might fluctuate due to different instruments.
How to buy or sell a Perpetual Contract?
Go to the Trade dashboard, then choose the quantity, price, and direction you want to trade and use Buy/Long or Sell/Short buttons to place your order.
Bid and Ask?
Bid is a standing order where you want to buy/long a contract at a specific price and quantity. Ask is a standing order where you want to sell/short a contract at a specific price and quantity.
How much leverage does BigONE offer?
BigONE offers different amounts of leverage for different products.
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 your 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 products at Risk Limits.
BigONE offers leverage on each of its products, and the highest leverage offered at BigONE is up to 100x, such as the BTC/USD Perpetual Contract.
What is Initial Margin?
Initial Margin is the minimum amount of Bitcoin or USDT you must deposit to open a position.
What is Maintenance Margin?
Maintenance Margin is the minimum amount of Bitcoin or USDT you must hold to keep your position open. Once your margin balance on BigONE falls below this level, your position will be liquidated automatically.
Why would I be liquidated?
If the Mark Price of your contract falls below your liquidation price for Long position, or it rises above your liquidation price for Short position, your Maintenance Margin level will be broken, and the system will take over the position instead. You can check your liquidation price in Trade History, where your liquidated position is closed at the Bankruptcy Price (which means your Maintenance Margin is equal to 0).
How does a Liquidation happen?
Once your position is going to be liquidated, the system will try to close the position at the prevailing market price. However, if the system fails to liquidate that position, then our Liquidation Insurance Fund comes to handle.
What is Insurance Fund?
The Insurance Fund is created to take on the unfilled liquidation orders before they are handled by the Auto-Deleveraging system.
Our Insurance Fund comes from liquidations that were able to be executed in the market at a price better than the bankruptcy price of that particular position.
What is Auto-Deleveraging?
Auto-Deleveraging happens when a liquidation remains unsettled in the market. Those who hold opposite positions will be closed according to leverage and priority based on the profits.
Does BigONE charge fees on Auto-Deleveraging?
No. BigONE does not charge any fees during the process of Auto-Deleveraging.
Will I get bankrupted?
No. BigONE has established a profound mechanism to protect the funds of our users. Your margin balance on the platform will never fall below 0.
Will BigONE socialize losses?
No. Since we have our Auto-Deleveraging mechanism, we do not need to socialize the losses further.
Does BigONE charge fees on depositing Bitcoin or USDT?
No. No fees will be charged on deposits at BigONE.
Does BigONE charge fees on withdrawing Bitcoin or USDT?
No. No fees will be charged on withdrawals at BigONE. If you want to withdraw your Bitcoin or USDT, the minimum Bitcoin or USDT Network fee will be charged according to the blockchain load.
Does BigONE charge fees on trading?
Yes. BigONE charges a trading fee on every completed trade. You can check the Fees for detailed information.