Phemex Perpetual Contract
A Perpetual Contract is a derivative product that is similar to a traditional Futures Contract (an agreement to buy or sell a commodity at a predetermined price at a specified time in the future), but with one main difference: contrary to Futures, Perpetual Contracts do not have an expiry date, so you can hold a position for as long as you like. In addition, perpetual contracts mimic the margin-based spot market and hence trade close to the Index Price. This allows you to amplify the outcome of the deal, but it also means that a decrease in the price of a commodity equal to your initial margin (the percentage of the total Funds you provided as a collateral) will automatically liquidate your equity and close your position.
BTC Perpetual contracts and USD Perpetual contracts.
At Phemex, users can use two different base currencies to trade all contracts. For contracts based on BTC, each contract is worth 1 USD of Bitcoin (1USD/current BTC price). Profits and Losses are calculated in terms of the contract's BTC value. Profits are equal to the difference between the contract’s value at Open Price (1USD/Open BTC price) and the contract’s value at Close Price (1USD/Close BTC price), times the Quantity. Losses are equal to the difference between the contract’s value at Close Price (1USD/Close BTC price) and the contract’s value at Open Price (1USD/Open BTC price), times the Quantity. Both functions are nonlinear, meaning that both do not have a constant rate of change. For USD based contracts, instead, the value of each contract is not predetermined. For instance, in ETHUSD contracts, each contract is worth the equivalent of 0.005 ETH, and for XRPUSD, each contract is worth the equivalent of 5 XRP. Profits and Losses are calculated based on the value of the contract in USD: both equal the difference between Close Price and Open Price, times the Quantity. Both functions evolve in a linear manner, having constant rates of change.
Deposit and Withdrawal
We support BTC, ETH, LINK, USDT, and XRP deposits and withdrawals. To begin trading, simply transfer your desired cryptocurrency from its corresponding Phemex Wallet into your target Trading Account. For example, when you intend to trade USD-based perpetual contracts using BTC, you will have to convert a certain amount of BTC to fund your USD Trading Account. Similarly, you will have to convert your USD into BTC when transferring funds back into your Phemex Wallet to withdraw. All conversions are automatic and based on the Spot price of the cryptocurrency you are using.