1. What is perpetual contract?
Perpetual Contract is a type of derivative similar to the tradition contract of the financial industry. The difference is that it does not have a settlement date, and through fees to anchor the index price. You can read more about perpetual contract through this link -> Perpetual Contract Introduction.
2. What is marked price?
Marked price is also known as the fair price. It is used to calculate unrealized profits/losses and for calculating forced liquidations. It reflects the current most fair market price.
- Market price = (1+fee ratio difference)*index price
For more information please refer to -> Fair Price
3. Does OceanEx provide leverage trading?
Yes. OceanEx perpetual contract trading has leverage options currently.
4. What are the leverage options for OceanEx Perpetual Contract?
OceanEx perpetual contract has different options according to the specific products. Leverage is decided by the initial margin and maintenance margin. It will decide the funds necessary for opening the positioning and maintaining the position. Leverage is not a set amount, but a yet determined requirement decided by the margin.
5. What are the fees for OceanEx perpetual contract trade?
Please refer to OceanEx perpetual contract trading fee.
1. What are fund fees and what are its functions?
In our perpetual contracts, such as BTC/USDT, its fund fees are exchanged between those opening long and short. In your trading history, a positive amount means you are paying the fees; a negative amount means you are receiving the fees. OceanEx does not pay nor receive fund fees.
2. Why do those opening short have to pay fund fees even when prices are rising?
Fund fees do not relate to markets’ rising nor falling status. It exists in the current market for long and short position holders’ fair price trends. For example, BTC/USDT index price is rising, at the same time, the market has more short position holders. This will cause fewer people to create long positions and create an imbalance in the market.
3. Why not remove this function and allow traders to bid against each other?
Bidding against other traders will need other traders to bid against. If market trends are leaning towards opening long, those who open long positions will not be able to find matches to their orders and will have to buy at a higher price. To balance this, OceanEx implements the Fund Fees feature to counteract.
4. Can this be replaced with an overflow price system?
The two systems have the same principle. They are both based around one party paying a higher price to ensure balance. They are just actualized through different methods.
5. How much do Fund Fees actually affect trades?
Fund fees will not affect traders’ positions too much in the long run, causing minimal to no effects. Only those who open the position for an extremely long time will need to seriously consider the profits or losses fund fees will bring.