Compared to traditional futures, one key feature of perpetual futures is that positions can be held indefinitely. Settlement occurs every 8 hours at 00:00, 08:00, and 16:00 (UTC).
Market Mechanisms of Perpetual Futures
When trading perpetual futures, investors should be aware of the following key mechanisms:
- Position Marking: Perpetual futures use a fair price marking method. The mark price determines unrealized profit and loss (PnL) as well as the liquidation price.
- Initial Margin: Determines the maximum leverage a trader can use to open a position.
- Maintenance Margin: The minimum margin required to keep a position open.
- Funding Fees: Traders pay or receive funding fees every 8 hours between long and short positions. If the funding rate is positive, long positions pay short positions; if negative, short positions pay long positions.
- Funding Fee Settlement Times: 00:00 (UTC+8), 08:00 (UTC+8), 16:00 (UTC+8)
- Traders only pay or receive funding fees if they hold a position at the settlement timestamp.
- The current funding rate can be found in the "Funding Rate" section of the market overview.
- JuCoin Perpetual Futures & Funding Fees: JuCoin does not charge any funding fees; funding fees are exchanged directly between users. When the funding rate is positive, longs pay shorts; when negative, shorts pay longs.
Trading Fees
JuCoin trading fees (for regular users):
- Maker Fee: 0.04%
- Taker Fee: 0.06%
Note: If the futures trading fee is negative, the corresponding amount will be refunded.
Key Financial Terms
- Wallet Balance = Deposits - Withdrawals + Realized PnL
- Realized PnL = Total closed PnL + Total trading fees + Total funding fees
- Total Equity = Wallet Balance + Unrealized PnL
- Position Margin = The margin required to maintain open positions, usually covering all active positions
- Order Margin = The funds locked for active orders
- Available Balance = Wallet Balance - Position Margin - Order Margin
- Net Asset Balance = The funds available for transfers and opening new positions
- Unrealized PnL = The total floating profit and loss of all positions