The Ultimate Guide to Bitget’s Coin-Margined Futures
The essential resource before you get started (and win big) with Coin-Margined Futures on Bitget
Bitget Coin-Margined Futures: Basic Concepts
What is Coin-Margined Futures?
Coin-Margined Futures is a new futures trading method launched by Bitget. Unlike the traditional trading method that only applies to corresponding coins, Coin-Margined Futures supports multiple currencies as a margin for multiple futures trading pairs. For example: using ETH as a margin, you now can trade BTCUSD, ETHUSD, EOSUSD with profit and loss will be calculated in ETH. The feature allows you to have more trading options, effectively increase the utilization rate of funds, and enjoy both trading interests and price rises.
The leverage principle of futures transactions is concentrated on the margin system of futures transactions, that is, you do not need to pay 100% of the funds when you conduct futures transactions. You only need to invest a small amount of funds at a certain ratio according to the futures value as the collateral for the performance of the futures to participate, this fund is called margin.
Leverage greatly improves the utilization of funds, and high returns are accompanied by high risks. The higher the leverage used by the trader, the lower the required margin.
Fund fee is the core operating mechanism of Bitget Coin-Margined Futures. The setting of the fund fee aims to ensure that the transaction price of the Coin-Margined Futures closely follows the underlying reference price through the regular exchange of fund rate between the long and short parties.
Bitget does not charge any funding fee. Funding fee is paid peer-to-peer (between Bitget users). Read more about Bitget Coin-Ⓜ Futures Fund Fee here.
Perpetual Coin-Margined Futures
Perpetual Coin-Margined Futures is a kind of derivative with no expiration or settlement date. You can choose the currency supported by the platform as the margin and calculate the profit and loss according to the selected margin currency. The spo t price is anchored by means of funding rate swaps.
Support margin currency
Perpetual Coin-Margined Futures can use the currency supported by the platform as the futures margin, and the margin currency is used for profit and loss settlement.
For example: using ETH as a margin, you can trade BTCUSD, ETHUSD, EOSUSD, profit and loss will be settled in ETH. The Perpetual Coin-Margined Futures lets one avoid the cumbersome exchange process while saving exchange cost, and at the same time allowing to obtain gains from an increase in price.
How to Trade Coin-Margined Futures on Bitget?
Trading Coin-Margined Futures on Bitget is pretty intuitive to use. To begin:
1. Go to Bitget Coin-Ⓜ Futures trading page
Log in with your Bitget ID, go to the Coin-Ⓜ Futures trading page.
2. Transfer funds to your Futures account
Click on the "Transfer" function to transfer assets from your spot account to your Coin-Ⓜ Futures account. There is no fee for internal transfers.
3. Open a position (Start trading)
Select the trading pair
Choose “Cross margin mode” or “Isolated margin mode”
Enter the price and amount
Choose the direction in which to place an order
After submitting the order, if the transaction is not completed immediately, you can view the order details in "Open Orders". If the transaction is executed immediately, you can view the order details in "Position". Then, you can also carry out "Adjust leverage" and "Close position". Please also note that the actions such as “Adjust leverage” will lead to an increase or decrease in the margin.
4. Close the position
Switch to the closing operation
Enter price and amount
Select the position to be closed (buy or sell)
- There are two ways to close a position: Limit Order or Flash Order. With the Flash Order function, you can immediately close the position - there is no requirement to enter the price and amount.
- If the close position order is not executed immediately, it will be displayed in the “Open Orders” list.
- The close position order can be revoked.
5. Check profit and lost
- When there is a position, you can view P/L in the "Position" list. It is classified into unrealized P/L and realized P/L.
- After the position is closed, P/L can be found in “Trade Details”.
Unrealized P/L: the estimated profit and loss amount after the current position is closed at the marked price or the latest transaction price. Red represents losses, and green represents profits.
Realized P/L: includes the fund rate charged regularly and the income obtained from partial position close. Red represents losses, and green represents profits.
For more detailed guidelines for each of the above steps, please refer to the following part of this article.
Beginner’s Guide to Bitget Coin-Margined Futures
Here are some ultimate guidelines and risk management techniques to avoid outsized losses when trading Coin-Margined Futures on Bitget.
MARGIN MODE: Isolated margin mode and Cross margin mode
Bitget Coin-Ⓜ Futures supports two types of margin modes: Isolated margin mode and Cross margin mode.
1 - Isolated Margin Mode Guidelines
When choosing the Isolated Margin Mode, users can hold positions in both directions, and the risks of short positions and long positions are calculated separately. Liquidation will lose the position margin only. When the user closes the position, the loss and profit generated by the short position and the long position respectively will be immediately settled into the position margin of the corresponding position.
- Bitget Coin-Ⓜ Futures Isolated Margin Mode supports hedge mode.
- User liquidation will only lose the margin allocated to this position. If it is not increased, it will only be the initial margin, which will not affect the remaining assets in the account.
- Bitget Coin-Ⓜ Futures supports the coexistence of cross margin mode and isolated margin mode. The same trading pair under the same margin currency only supports one margin mode.
For example: using ETH as margin, and 20 ETH is all assets, 5 ETH allocated to BTCUSD long position, 3 ETH allocated to ETHUSD long position, the profit and loss of the two positions do not affect each other, the profit and loss are calculated within the position.
The liquidation of one position will not affect the liquidation of another position. The 12 ETH in the account that is not involved will not be affected by the liquidation.
Notes: The user's actions such as adjusting the leverage lead to an increase or decrease in the margin. Part of the margin released by the leverage from small to large can only be transferred out manually. Part of the margin required to increase the leverage from large to small can be automatically added in the account.
2 - Cross Margin Mode Guidelines
When choosing the Cross Margin Mode, all available funds in the futures account are treated as available margin, and when the position loss exceeds the account balance, the position will be liquidated. The account under cross margin mode has a strong ability to carry loss, which is convenient for operation and calculation of positions.
- Cross margin mode refers to the use of all balances in the account to counter risks and avoid liquidation. The profit and loss of any position of cross margin mode will be reflected in it.
- Bitget Coin-Ⓜ Futures supports hedging of cross margin mode. This means the unrealized profit of position A can be used to offset the unrealized loss of position B, and multiple contract trading pairs can jointly resist risks.
For example: if ETH is used as margin, the long position of BTCUSD gains 10 ETH, and the long position of ETHUSD loses 6 ETH, then the equity in the ETH account is 4 ETH profit.
Notes: For trading pairs that use BTC as margin, such as holding BTCUSD, this position is not concluded in hedging in transactions that use ETH as margin.
MARGIN TYPES: Position margin, Available margin, Maintenance margin, Risk margin
After the position is established, you can view the current position margin in the "Position" on the futures trading page.
Position opening margin = (amount of opening positions * position opening price) / reasonable m ark price of margin coins.
Available margin refers to the margin that can be used to open a position. This margin will be partially released (increasing the utilization rate of funds) due to the state of the hedge position (larger margin is taken in the hedge position), and the actual state of the transaction shall prevail.
Maintenance Margin refers to the minimum value you need to keep your positions open. It varies according to the current size of your positions.
Maintenance margin = Maintenance margin rate * Position value (hedge positions are calculated based on positions with large equity)
Maintenance margin of isolated margin mode = Position value of the current position * Maintenance margin rate of the current tier
= (amount of open positions * latest mark price) / reasonable mark price of margin coins * Maintenance margin rate of the current tier
Maintenance margin of cross margin mode (larger positions is taken for hedge position margin)
= Max (number of long positions, number of short positions) * latest marked price / reasonable marked price of margin coins * Maintenance margin rate of the corresponding tier
Due to the large fluctuations in the market of cryptocurrency, and the final loss of bankruptcy cannot be traced, Bitget establishes a risk margin system to resist the risk of liquidation.
After the liquidation is triggered and completed, if the remaining assets in the account are positive, the risk margin will be injected; if the remaining assets in the account are negative, the risk margin will be paid.
Notes: The order price after the liquidation trigger is affected by market fluctuations and liquidity, and the resulting risk fund may not be the same as the liquidation trigger price.
LEVERAGE AND RISK MANAGEMENT
To avoid market manipulation, Bitget uses marked prices for forced liquidation. Leverage and risk will be measured according to the user's total position risk in a certain margin currency. For details:
- Forced liquidation of isolated margin mode: Margin of isolated margin mode + Unrealized profit and loss < Maintenance margin (when Margin Ratio reaches 100%)
- Forced liquidation of cross margin mode: Cross margin mode account equity (excluding isolated margin and unrealized profit and loss of isolated margin mode) < Maintenance Margin (when Margin Ratio reaches 100%)
Thank to this risk management system on Bitget, as a user, you can take the following actions when a risk occurs to minimize loss:
(1) Cancel the order;
Notes: For the isolated margin mode, it only cancels the opening and closing orders of this transaction for one position at a time. For the cross margin mode, all the orders for opening and closing positions will be canceled (including opening and closing positions by isolated margin mode)
(2) Remove the hedge position order of al l trading pairs (isolated margin mode not included);
(3) Deleverage, according to the position tier, reduce 2 tiers each time (isolated margin mode not included).
When the position is liquidated, the remaining positions will be put into flash orders in the market (isolated margin mode not included).
Notes: After the risk process is triggered, your transaction will be temporarily taken over by the risk control engine, and your liquidation transaction price will not be reflected in the transaction record or candlestick. Once in the risk treatment process, other operations are prohibited until the treatment is completed.
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