USDⓈ-M Futures vs COIN-M Futures
Quotation Units: USDⓈ-M Futures are settled in USDT, while COIN-M Futures are denominated in the underlying asset (e.g., BTC, ETH).
Profit and Loss Calculation: USDⓈ-M Futures calculate P&L in USDT, whereas COIN-M Futures calculate P&L in the underlying asset.
Margin Currency: USDⓈ-M Futures use USDT as margin, enabling trading across multiple USDⓈ-M contracts. COIN-M Futures require the underlying cryptocurrency as margin (e.g., BTC must be deposited to trade BTC/USD perpetual swaps).
Margin Risk: COIN-M Futures margins fluctuate with the underlying asset price; USDT margins remain stable.
Cross Margin and Isolated Margin
Cross Margin: All positions share the same margin pool. In case of liquidation, total margin and all open positions under that asset may be forfeited.
Isolated Margin: Each position has independent margin, allowing better risk control. Positions are liquidated when margin ratio reaches 100%. Margin can be added or removed for individual positions.
One-Way vs Hedge Trading Modes
One-Way Mode: Only one directional position (long or short) is allowed per contract at a time.
Hedge Mode: Long and short positions can be held simultaneously on the same contract, enabling risk hedging.
Funding Fee
WOO X Pro perpetual swaps use a funding rate mechanism to align perpetual contract prices with spot prices. Funding occurs every 8 hours at 00:00, 08:00, and 16:00.
Positive Funding Rate: Longs pay shorts.
Negative Funding Rate: Shorts pay longs.
Futures Trading Fee
Futures Trading Fee = Average Price × Trading Size × Fee Rate
Example: 1 BTC traded at an average price of 10,000 USDT with a 0.02% fee → Fee = 1 × 10,000 × 0.02% = 2 USDT
COIN-M futures fees are calculated in the respective token.
Reasonable Price Marking
The mark price prevents unnecessary liquidations caused by market manipulation or liquidity shortages. It is based on a fair valuation model rather than the latest trade price, reducing unwarranted forced closures. For perpetual swaps, the mark price reflects the global spot index adjusted by funding costs.
Price Index
Aggregates prices from major spot exchanges (Huobi, OKEX, Bittrex, HitBTC, Gate.io, Bitmax, Poloniex, MXC, etc.) weighted by trading volume to provide a reliable benchmark for futures pricing.
Margin Ratio
Margin Ratio = Margins / Margins Balance
Positions are liquidated when the margin ratio reaches 100%.
Forced Liquidation
Perpetual swaps offer leverage up to 200x. Positions must maintain a minimum margin (maintenance margin). If margin falls below this level, positions are automatically closed, and remaining margin is forfeited.
Long positions: liquidated if mark price drops below liquidation price.
Short positions: liquidated if mark price rises above liquidation price.
Unrealized P&L
Reflects potential profit or loss at current market price if the position were closed now. This is an estimated value and does not represent actual realized P&L.
Realized P&L
Represents net profit or loss from closed positions after deducting applicable fees. Includes take-profit, stop-loss, and other related capital expenses.
Profit Calculation
USDⓈ-M Futures:
Long: (Close Price - Open Price) × Contract Size
Short: (Open Price - Close Price) × Contract Size
COIN-M Futures:
Long: Contract Size / Close Price – Contract Size / Open Price
Short: Contract Size / Close Price – Contract Size / Open Price
Disclaimer
Cryptocurrencies are highly volatile and carry significant market risks. Users should perform thorough research and make independent investment decisions. WOO X Pro lists only reputable assets but is not liable for investment losses.