What are Bex500 perpetual contracts?
Perpetual Contracts integrate benefits of both spot trading and futures trading. They are more flexible, more efficient and not affected by time or settlement dates. Traders can buy long position orders or sell short orders anytime, anywhere.
◆ Types of Perpetual Contract
We offer 4 types of perpetual contract trading pairs including BTC/USDT，ETH/USDT，LTC/USDT，XRP/USDT. Traders can select their contract type based on their trading strategies and preferences.
◆ The Range of Perpetual Contract
A Perpetual Contract is an advanced derivative product, which is similar to a traditional futures contract but without a settlement date. It is suitable for trading, hedging and arbitrage.
Bex500 perpetual characteristics
In order to fulfill the actual demand from traders, the Bex500 perpetual Contract has 6 characteristics:
1. Without Settlement Date.
Unlike traditional futures, perpetual contracts do not have a settlement date, and are not affected by expiration fee and settlement date.
Thus, a perpetual contract is popular among speculators and hedgers. Nevertheless, if you decide on a long-term investment, Bex500 will charge you a leverage interest fee every 8 hours, which may affect your profits.
2. Without Slippage
In the cryptocurrency market, some immoral exchanges use “Pump and dump” and “Internet error” and “mark price” to control market trends and price to cheat traders out of money.
“Pump and Dump” is a cheating method where an exchange suddenly twists the market price to liquidate more orders.
“Internet error” is another lame excuse when there are extremely volatile markets. The system breaks down, which results in relatively great losses for investors
“Mark price”, is often employed by some exchanges to liquidate the orders at non-market prices. The “mark price”, is easier to manipulate which are set up by the exchange itself.
BEX500 employs the market price (the index is calculated bases on 4 major spot trading exchanges) to close or liquidate orders, which is transparent to users.
3. First Exchange with Unlimited Market Depth
What is “Market depth”? Market depth is the market's ability to sustain relatively large market orders without impacting the market prices. For example, you plan to buy 100 Contracts with a price of $10000. If the market has a lack of depth, the actual executed price may hit $11000, because there is no adequate matching orders at the price of $10,000.
Bex500 is the first exchange with infinite market depth where no slippage will happen in order execution.
BEX500 prides itself on infinite market depth, thanks to many traders from over 100 different countries who provide enormous trading volume. Moreover, there are 3-4 large scale substantial Liquidity providers support the “market depth” of Bex500
4. Amazing 100x Leverage.
It is common to see 3-5x leverage for spot trading and 10-20x leverage for margin trading.
However, the Bex500 perpetual contract has an amazing 100x leverage which enables superior and high-efficiency trading experiences to speculators and hedgers.
5. Anchored to Global Spot Prices.
The Bex500 perpetual contract price is always anchored to the global spot price. In order to realize fairness, Bex500 uses a “funding fee” as the primary mechanism to maintain the consistency of the price.
According to market conditions, Bex500 charges 0.03% from buyers as the funding fee to ensure Bex500’s last traded price is always anchored to the global spot price. "Funding" is charged directly from buyers every 8 hours at 16:00 UTC+8, 00:00 UTC+8 and 08:00 UTC+8.
6. Daily Settlement, No Shared Losses.
Bex500 employs an Auto Deleveraging System to protect traders’ interests. Unlike the commonly used socialized loss system in which all profitable traders have to share the costs, ADL ranks all traders by profit ratio and effective leverage, where the more profitable and higher leveraged traders will be de-leveraged first. ADL effectively protects investors from being affected by large losses caused by risky traders.
The Bex500 Team comprises of financial and internet professionals. We are dedicated to providing our clients with a professional, efficient and secure trading platform. We are honored to promote knowledge and market information about cryptocurrencies, derivatives, and trading. Follow us for more information on the exciting world of cryptocurrencies and finance. Or you may contact our customer service to learn more. (information as below). Welcome and we hope you enjoy your journey on Bex500.
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