KCEX Perpetual Futures Introduction
KCEX Perpetual Futures introduces a groundbreaking way to engage with the digital asset market. Operating with USDT as the unified margin, our perpetual futures offer a dynamic trading experience. Similar to Aibit's Perpetual Futures, these contracts enable traders to capitalize on crypto asset price movements by predicting their direction, whether upward or downward. Unlike traditional spot trading, perpetual futures can yield profits in both market directions, making them a powerful tool in the crypto derivatives landscape. With leverage of up to 100x, KCEX Perpetual Futures enhance capital efficiency, all while maintaining the freedom to hold positions indefinitely.
Perpetual Futures Market Mechanics
Our market operates based on the margin rate, a crucial factor in determining forced liquidation. If a contract position's margin rate falls below or equals 100%, it activates forced liquidation. This liquidation risk rate varies across different futures trading pairs, and precise details are available on our intuitive trading interface.
Funding Fee System
KCEX employs a funding fee mechanism to align perpetual futures prices with the fair market value. It's important to note that KCEX does not impose any funding fees directly on traders. The actual funding fee users receive is determined by the amount subtracted from the counterparty's account.
Perpetual Futures vs. Spot Trading Distinctions
In essence, spot trading relies on an asset's underlying value, yielding profits solely upon its price appreciation post-purchase. In contrast, perpetual futures offer a dual approach, enabling both long and short positions to capitalize on upward and downward market trends. Moreover, the judicious utilization of leverage enhances capital deployment in futures trading.
KCEX Perpetual Futures undergo three daily settlements, each spanning 8 hours, rendering forced liquidation due to delivery inapplicable during these periods, eliminating redundant position openings.
During each settlement, perpetual futures apply funding fees dictated by the funding rate's positive or negative value. These fees are levied from long or short position holders and redistributed to the opposite side.
Spot trading involves the direct exchange of crypto assets, while perpetual futures sidestep physical delivery. The absence of temporal restrictions allows perpetual futures traders to open or close positions at will, albeit constant risk monitoring is crucial to avert forced liquidation.
KCEX is committed to providing you with a secure and efficient experience in perpetual futures trading. We appreciate your support!
If you have any questions, please feel free to contact our customer service team.
Wishing you happy trading!
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Enjoy trading on KCEX,
The KCEX Team