Filter menu

Sort

South Korea’s Unrest: What It Means for Crypto Markets


<p>Cryptocurrencies are quickly becoming a popular way to invest money. One of the newest tokens to hit the market is the Worldcoin (WLD). If you’re considering investing in this relatively new currency, it’s important to understand the basics of Worldcoin. In this article, we’ll cover what exactly Worldcoin is, who founded it, how to buy it, and an analysis of its safety and price.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/21384502594457" alt="Worldcoin-WLD-cover.jpeg" /></figure>



<h3 class="wp-block-heading">Contents of the article:</h3>



<p><a href="#h2-1">Resources</a></p>



<p><a href="#h2-2">What is Worldcoin?</a></p>



<p><a href="#h2-3">Who are the founders of the Worldcoin?</a></p>



<p><a href="#h2-4">How to buy Worldcoin tokens?</a></p>



<p><a href="#h2-5">Is Worldcoin safe?</a></p>



<p><a href="#h2-6">WLD token price analysis</a></p>



<p><a href="#h2-6">What Worldcoin (WLD) trading pairs are available on XT.COM?</a></p>



<h2 class="wp-block-heading" id="h2-1">Resources</h2>



<p><a href="https://whitepaper.worldcoin.org/" target="_blank" rel="noreferrer noopener">White paper</a></p>



<p><a href="https://worldcoin.org/" target="_blank" rel="noreferrer noopener">Official website</a></p>



<p><a href="https://etherscan.io/token/0x163f8c2467924be0ae7b5347228cabf260318753" target="_blank" rel="noreferrer noopener">Worldcoin (WLD) blockchain explorer</a></p>



<h2 class="wp-block-heading" id="h2-2">What is Worldcoin?</h2>



<p>The primary objective of the Worldcoin project is to establish an extensive identity and financial network that functions as a public utility, ensuring equitable ownership for all.</p>



<p>The cornerstone of the Worldcoin system is World ID, a globally recognized identity network that protects user privacy. With World ID, individuals can validate their humanity online, while safeguarding their personal information using zero-knowledge proofs.</p>



<p>To participate in the Worldcoin protocol, individuals are required to install the World App, the first-ever wallet application that facilitates World ID creation. To obtain Orb verification for their World ID, individuals must visit an imaging device called the Orb. The majority of Orbs are managed by a network of independent local businesses known as Orb Operators. Utilizing multispectral sensors, the Orb verifies the distinctiveness and humanness of individuals, with all images deleted from the device by default (unless explicit consent for Data Custody is given).</p>



<p>All holders of Orb-verified World IDs are eligible for recurring grants of&nbsp;<a href="https://www.xt.com/en/price/coin/worldcoin-wld">WLD tokens</a>&nbsp;at no cost (please refer to the Worldcoin Tokenomics section in the project’s whitepaper for availability details in the United States). This effectively positions WLD as a highly distributed digital currency.</p>



<p>The&nbsp;<a href="https://www.xt.com/en/price/coin/worldcoin-wld">WLD token</a>&nbsp;has been designed as a utility token, encompassing governance properties that empower users by granting them influence over the future of the protocol. In contrast to traditional “one-token-one-vote” governance mechanisms, the introduction of World ID signifies the potential for “one-person-one-vote” mechanisms, offering new avenues for governance. The combination of these two mechanisms also opens up possibilities for innovative approaches to governing. Following the launch, the Worldcoin Foundation will actively seek proposals and collaborate with the community to establish the interaction between World ID and the WLD token in Worldcoin’s governance model (refer to the project’s whitepaper for a comprehensive overview of governance and decentralization).</p>



<p>While the community of users holds the authority to determine the token’s utility, it is worth considering additional use cases aside from governance. For instance, users might choose to employ the&nbsp;<a href="https://www.xt.com/en/price/wld">WLD token</a>&nbsp;to facilitate specific actions within World App or other wallet applications, facilitate other types of transactions, or express endorsement for particular initiatives or causes.</p>



<p>WLD operates as an ERC-20 token on the Ethereum network, with individual user grants allocated on the Optimism Mainnet. Consequently, the majority of WLD transactions are expected to occur on the Optimism network.</p>



<h3 class="wp-block-heading" id="h_01JD8V0RBVZ7JVWX4RHXV02JRJ">Four major components of Worldcoin</h3>



<ul class="wp-block-list">
<li>World Orb: The World Orb represents a unique device, resembling the size and appearance of a Magic 8 Ball but with a larger silver-colored design. It serves the purpose of scanning an individual’s iris, which, similar to fingerprints, possesses a one-of-a-kind pattern.</li>



<li>World ID: World ID functions as a digital passport, enabling individuals to establish their uniqueness and authenticity while maintaining anonymity.</li>



<li>World App: World App serves as a user-friendly digital wallet, facilitating access to the Worldcoin and Ethereum protocols for individuals across the globe. Experience the power of proving your personhood with World ID, the essential human passport for navigating the new digital realm.</li>



<li>Worldcoin (WLD): Regarding the native cryptocurrency of Worldcoin, <a href="https://www.xt.com/en/price/wld">WLD tokens</a>, approximately 2 million users who participated in the Worldcoin beta program were granted a generous allocation of 25 WLD tokens each. Presently, more than 110 million WLD tokens are actively in circulation, and the Worldcoin white paper predicts a total issuance of 10 billion WLD tokens over a span of 15 years. It is crucial to note that once this threshold is reached, the WLD supply will be capped.</li>
</ul>



<h2 class="wp-block-heading" id="h2-3">Who are the founders of the Worldcoin?</h2>



<p>Sam Altman, Alex Blania, and Max Novendstern (Max Novendstern left the project in July 2021) founded Worldcoin. Notably, Sam Altman, also the co-founder and current CEO of OpenAI and former president of Y Combinator, a startup incubator, is among the co-founders. The Worldcoin project’s initial research and development were conducted by Tools for Humanity (TFH) and other partners.</p>



<p>Worldcoin has successfully raised more than 250M USD through multiple funding rounds, attracting investments from notable entities like a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital, and Tiger Global, among others.</p>



<h2 class="wp-block-heading" id="h2-4">How to buy Worldcoin tokens?</h2>



<p>The&nbsp;<a href="https://www.xt.com/en/price/wld">WLD token</a>&nbsp;is accessible through various channels, providing individuals the flexibility to choose the most suitable purchasing option based on their requirements. Prices are subject to fluctuations in the market.</p>



<p>WLD can be purchased on leading centralized exchanges (CEXs) including Binance, KuCoin, OKX, Bybit, Huobi, and&nbsp;<a href="https://www.xt.com/en">XT.COM</a>. CEXs like XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;offer multiple options such as credit card or bank deposit, as well as the ability to purchase WLD using stablecoins like Tether (USDT).</p>



<p>Additionally, decentralized finance (DeFi) platforms like Uniswap and PancakeSwap allow for token swaps. It’s important to note that the levels of security, reliability, and liquidity may vary among these platforms. In an open letter, Sam Altman and co-founder Alex Blania expressed that the availability of&nbsp;<a href="https://www.xt.com/en/price/coin/worldcoin-wld">WLD tokens</a>&nbsp;would consider regions with more feasible legal compliance.</p>



<p>During the launch on July 24, 2023, WLD was not available in the United States. The company explicitly stated that the use, purchase, or access of WLD tokens is not intended for U.S. persons, including U.S. citizens, residents, individuals located within the U.S., and companies incorporated, located, or registered in the United States. Additionally, completing an Orb scan in the U.S. would make individuals ineligible for the token drop.</p>



<h2 class="wp-block-heading" id="h2-5">Is Worldcoin safe?</h2>



<p>Worldcoin has generated a considerable amount of skepticism within the cryptocurrency market. With its unique emphasis on biometrics and its absence in the U.S., along with its ambiguous token distribution approach, Worldcoin has become a topic of controversy.</p>



<p>Critics express apprehension regarding the lack of transparency surrounding the distribution of WLD tokens. In a recent interview with Bankless, Blania declined to provide any clarity on the matter, citing “regulatory uncertainty” in the U.S. Over the past few months, numerous cryptocurrencies and exchanges have faced scrutiny from the U.S. Securities and Exchange Commission due to allegations of selling and distributing unregistered securities. The classification of digital assets by regulators remains uncertain, but crypto enthusiasts celebrated a significant legal triumph in July when a court ruled that Ripple’s XRP token is “not necessarily a security on its face.”</p>



<p>Besides concerns about token accessibility and distribution, skeptics argue that the collection of biometric data poses its own security risks.</p>



<p>According to a recent blog post by Ethereum co-founder, Vitalik Buterin, there are potential concerns with Worldcoin’s proof-of-personhood system. These concerns include issues related to accessibility, privacy, security, and centralization. MIT Technology Review also published a story highlighting ethical concerns regarding data collection during Worldcoin’s beta phase. The report revealed discrepancies between Worldcoin’s public messaging and users’ actual experiences, including deceptive marketing practices, excessive data collection, and a lack of informed consent.</p>



<p>Additionally, traders have expressed worries about potential WLD dilution and its impact on Worldcoin’s price, considering only a small percentage of the cryptocurrency’s total supply is currently in circulation. Despite the criticism, Worldcoin’s founder, Sam Altman, remains optimistic and encourages critics to continue voicing their opinions. Altman views ambitious projects like Worldcoin as a means to drive progress, acknowledging that success is not guaranteed, but innovation requires the exploration and experimentation of new ideas.</p>



<h2 class="wp-block-heading" id="h2-6">WLD token price analysis</h2>



<p>Worldcoin (WLD) has experienced a period of stability following its initial turbulent launch on various mainstream cryptocurrency exchanges.</p>



<p>On July 29th, the price of WLD exhibited a modest increase of approximately 6%, reaching $2.35. However, it is important to note that the token&#8217;s value has declined by 70% since its peak of $7.50 during its market debut.</p>



<p>Presently, the price seems to be confined within the $2-$2.50 trading range, indicating a potential conflict of bias within the market.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/21384476958489" alt="wld-price-1-en.png" /></figure>



<p>The price of WLD is projected to remain steady at around $2 until October. It is worth mentioning that WLD is affiliated with the Worldcoin Foundation, which was founded by Sam Altman of OpenAI on July 24. This token has a total supply of 143 million, with 43 million allocated for distribution to Worldcoin’s app users through an airdrop. Users who verify their identity using an eye-scanning physical orb will receive 25 WLD tokens each.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/21384460914329" alt="wld-price-2-en.png" /></figure>



<p>The remaining 100 million tokens have been lent to market makers located outside of the United States until October 2023. These market makers have the option to either return the WLD tokens or purchase them at a price of $2 plus $0.04 multiplied by the number of tokens being bought divided by 1 million.</p>



<p>Consequently, there seems to be a stabilization of the&nbsp;<a href="https://www.xt.com/en/price/wld">WLD price</a>&nbsp;around the $2 mark. This strategy, as highlighted by Kaiko Research, aims to maintain the token’s appeal to potential users.</p>



<p>According to the latest report from the data analysis firm, adding “The 25 WLD tokens are currently worth a little more than $50 and will likely stay in that range for the next three months. So far, this seems to be enticing people to sign up and scan.”, convincing individuals to register their eyes for 25 units of a token that does not exist yet can be quite challenging. This challenge is intensified if the token’s price is as low as $0.10.</p>



<h3 class="wp-block-heading" id="h_01JD8V0RBVVPV8FN7GMKXPGQ24"><a href="https://www.xt.com/en/price/coin/worldcoin-wld">Worldcoin price</a>&nbsp;technical analysis</h3>



<p>The total number of Optimism wallets holding WLD tokens has jumped to nearly 305,000 since July 24, according to Dune Analytics.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/21384471910937" alt="wld-price-3-en.png" /></figure>



<p>Meanwhile, WLD transfer volume has dropped in the same timeframe. These metrics show that most traders have preferred to hold the token.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/21384456155545" alt="wld-price-4-en.png" /></figure>



<p>As a newly launched token, WLD lacks enough trading history to conduct a long-term price analysis. However, on a shorter-timeframe chart, the Worldcoin token appears to be fluctuating inside an ascending channel pattern.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/21384488632345" alt="wld-price-5-en.png" /></figure>



<p>As of June 29th, the price of WLD traded in the vicinity of the lower trendline. There is an anticipation of a rebound towards the range of $2.35 to $2.40, which is marked as “resistance 1” in the chart above and aligns with the upper trendline.</p>



<p>If the price manages to close above the upper trendline, there could be an increased likelihood of WLD rallying further towards the range of $2.50 to $2.56 (resistance 2) in Q3. This represents an approximate 12% increase from the current price levels.</p>



<p>Conversely, if the lower trendline is broken, the WLD price might move into the range of $2.15 to $2.20 (support 1). A close below this range may result in the price testing the range of $2.00 to $2.10 as the next downside target, which corresponds to a decrease of approximately 10% from the current price levels.</p>



<h2 class="wp-block-heading" id="h2-7">What Worldcoin (WLD) trading pairs are available on XT.COM?</h2>



<p>Spot market:&nbsp;<a href="http://www.xt.com/en/trade/wld_usdt" target="_blank" rel="noreferrer noopener">WLD/USDT</a></p>



<p>Futures markets:&nbsp;<a href="https://www.xt.com/en/futures/trade/wld_usdt" target="_blank" rel="noreferrer noopener">Perpetual Worldcoin (WLD) futures</a></p>



<h3 class="wp-block-heading" id="h_01JD8V162ZWM47X29FYWC4V264"><strong>About&nbsp;</strong><strong>XT.COM</strong></h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What is Worldcoin? Everything You Need to Know About the Worldcoin Token


<p>Are you looking for a blockchain platform that maximizes both access and scalability? The Sui Blockchain might just be the answer. It stands out from other blockchains due to its proprietary technology, primacy consensus algorithm, and versatility in application use cases. In this article, we’ll explain more about the platform itself and explore why investing in SUI tokens is an attractive option for crypto investors. Get ready to learn everything there is to know about Sui Blockchain – from its remarkable qualities as a third-generation blockchain all the way to how it can benefit your portfolio! We will also discuss the latest news about SUI token allocation plan.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/17691683608601" alt="SUI-cover.jpg" /></figure>



<h3 class="wp-block-heading">Contents of the article:</h3>



<p><a href="#h2-1">What is Sui Blockchain?</a></p>



<p><a href="#h2-2">How Does Sui Blockchain Work?</a></p>



<p><a href="#h2-3">What is SUI token?</a></p>



<p><a href="#h2-4">The Sui economy</a></p>



<p><a href="#h2-5">What is Sui’s competitor?</a></p>



<p><a href="#h2-6">SUI Token Allocation</a></p>



<h2 class="wp-block-heading" id="h2-1">What is Sui Blockchain?</h2>



<p>Sui Official website:&nbsp;<a href="https://sui.io/">https://sui.io/</a></p>



<p>Original Sui whitepaper:&nbsp;<a href="https://github.com/MystenLabs/sui/blob/main/doc/paper/sui.pdf">https://github.com/MystenLabs/sui/blob/main/doc/paper/sui.pdf</a></p>



<p>Sui Tokenomics white paper:&nbsp;<a href="https://github.com/MystenLabs/sui/blob/main/doc/paper/tokenomics.pdf">https://github.com/MystenLabs/sui/blob/main/doc/paper/tokenomics.pdf</a></p>



<p>Sui is a Layer 1 blockchain designed to solve some of the problems around&nbsp;<a href="http://www.xt.com/en">web3</a>. Sui Blockchain is a distributed ledger technology that is gaining popularity in the crypto world. It operates on a proof-of-stake consensus algorithm and is designed to be more energy-efficient than traditional proof-of-work blockchains like Bitcoin. Sui Blockchain also offers faster transaction speeds and lower transaction fees, making it an attractive option for users looking for an alternative to existing blockchain networks as the blockchain landscape moves toward greater adoption of&nbsp;<a href="http://www.xt.com/en">web3</a>. The platform is built to accommodate various decentralized applications and smart contracts, allowing developers to create innovative solutions on top of the blockchain. Furthermore, Sui is a next-generation smart contract platform focusing on throughput and low latency. The blockchain utilizes an asset-oriented programming model based on the smart contract language known as Move. Overall, Sui Blockchain holds great promise as a scalable, secure and eco-friendly blockchain platform that has the potential to reshape the landscape of the blockchain industry.</p>



<p>Sui, an innovative new platform, comes with some seriously impressive backing. Mysten Labs &#8211; known for their expertise in Web3 infrastructure &#8211; are the brains behind this cutting-edge technology. The team behind Sui is made up of a squad of skilled professionals whose expertise spans cryptography, programming language, and distributed systems. According to Mysten Co-Founder and CEO Evan Cheng, Web3 is currently going through a dial-up phase; it’s slow, expensive, insecure, and often proves difficult to build. But with the launch of Sui, they’re aiming to eliminate middlemen and allow users to seamlessly interact with their favorite products across a range of different applications. This is an exciting time for Web3, and Sui is a positive step in the right direction.</p>



<h2 class="wp-block-heading" id="h2-2">How Does Sui Blockchain Work?</h2>



<p>The blockchain game has entered a new phase thanks to Sui’s groundbreaking blockchain technology. By harnessing the power of non-overlapping states, the Sui blockchain achieves blazing speed and can process transactions in parallel. What’s more, Sui optimized for simple transactions by eliminating the need for consensus, which speeds up the process even further.</p>



<p>But that’s not all, Sui’s design allows for lightning-fast finality, making it the perfect fit for gaming and other real-time applications. With its intuitive programming model and inherent security, smart contracts written in Sui Move make it easy for developers to integrate the technology into their projects.</p>



<h3 class="wp-block-heading" id="h_01JD8ZG3QHFQZDMDXTGAKWK2AJ">Components</h3>



<ul class="wp-block-list">
<li>Objects &#8211; Sui has programmable objects created and managed by Move packages (a.k.a. smart contracts). Move packages themselves are also objects. Thus, Sui objects can be partitioned into two categories: mutable data values and immutable packages.</li>



<li>Transactions &#8211; All updates to the Sui ledger happen via a transaction.</li>



<li>Validators &#8211; The Sui network is operated by a set of independent validators, each running its own instance of the Sui software on a separate machine (or a cluster of machines operated by the same entity).</li>
</ul>



<h3 class="wp-block-heading" id="h_01JD8ZG3QHQ0JM2YZJHNG0JR03">Architecture</h3>



<p>Sui is a distributed ledger that stores a collection of programmable objects, each with a globally unique ID. Every object is owned by a single address, and each address can own an arbitrary number of objects.</p>



<p>The ledger is updated via a transaction sent by a particular address. A transaction can create, destroy, and write objects, as well as transfer them to other addresses.</p>



<p>Structurally, a transaction contains a set of input object references and a pointer to a Sui Move code object that already exists in the ledger. Executing a transaction produces updates to the input objects and (if applicable) a set of freshly created objects along with their owner addresses. A transaction with address A as a sender can accept either (a) objects owned by A, (b) shared objects, or (c) objects that are owned by other objects which satisfy case (a) or case (b).</p>



<p>The validators on the Sui blockchain do not require consensus to process transactions involving exclusively owned objects. Instead, they execute transactions in parallel at high throughput, utilizing Byzantine Consistent Broadcast. For objects that involve shared objects, the validators employ Bullshark, a high-throughput DAG-base consensus protocol.</p>



<h3 class="wp-block-heading" id="h_01JD8ZG3QHMSX8D7RZ52FX3H24">Scalability</h3>



<p>As mentioned, Sui does not impose a total order on the transactions containing only owned objects. Instead, transactions are causally ordered. If a transaction T1 produces an output object O1 used as input object in a transaction T2, a validator must execute T1 before it executes T2. Note that T2 does not need to use these objects directly for a causal relationship to exist, e.g., T1 might produce output objects that are then used by T3, and T2 might use T3’s output objects. However, transactions with no causal relationship can be processed by Sui validators in any order. This insight allows Sui to massively parallelize execution, and shard it across multiple machines.</p>



<p>Sui employs the state-of-the-art Bullshark consensus protocol to totally order transactions involving shared objects. The consensus sub-system also scales in the sense that it can sequence more transactions by adding more machines per validator.</p>



<h3 class="wp-block-heading" id="h_01JD8ZG3QHC3P0TQXP8TSN9YDZ">Smart contract programming</h3>



<p>Sui smart contracts are written in Sui Move, a dialect of the Move language. Sui Move is safe and expressive, and its type system and data model naturally support the parallel agreement/execution strategies that make Sui scalable. Move is an open-source programming language for building smart contracts originally developed at Meta for the Diem blockchain.</p>



<h2 class="wp-block-heading" id="h2-3">What is SUI token?</h2>



<p>SUI is the native coin of the Sui blockchain. To differentiate between the blockchain layer and the coin, the name of the token, SUI, is always capitalized. With its total supply capped at ten billion tokens, SUI is set to take the crypto world by storm. At launch, a portion of the tokens will be available for use, while the rest will be distributed over the years as stake reward subsidies. But what can you do with SUI? For starters, stake it and participate in the proof-of-stake mechanism. It’s also the currency required for paying gas fees to carry out transactions and other operations. Not only that, but SUI is extremely versatile and serves as the backbone of the entire Sui economy. And that’s not all &#8211; hold onto your SUI as it also gives you the right to participate in on-chain voting, making it a valuable asset for governance purposes.</p>



<h2 class="wp-block-heading" id="h2-4">The Sui economy</h2>



<p>The Sui economy is characterized by three main sets of participants:</p>



<ul class="wp-block-list">
<li>Users submit transactions to the Sui platform in order to create, mutate, and transfer digital assets or interact with more sophisticated applications enabled by smart contracts, interoperability, and composability.</li>



<li>SUI token holders have the option of staking their tokens to validators and participating in the proof-of-stake mechanism. SUI owners also hold the rights to participate in Sui’s governance.</li>



<li>Validators manage transaction processing and execution on the Sui platform.</li>
</ul>



<p>The Sui economy has five core components:</p>



<ul class="wp-block-list">
<li>The SUI token is the Sui platform’s native asset.</li>



<li>Gas fees are charged on all network operations and used to reward participants of the proof-of-stake mechanism and prevent spam and denial-of-service attacks.</li>



<li>Sui’s storage fund is used to shift stake rewards across time and compensate future validators for storage costs of previously stored on-chain data.</li>



<li>The proof-of-stake mechanism is used to select, incentivize, and reward honest behavior by Sui Validators and the SUI owners that stake with them.</li>



<li>On-chain voting is used for governance and protocol upgrades.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/17691709789465" alt="sui-tokenomics-flow.png" /></figure>



<h2 class="wp-block-heading" id="h2-5">What is Sui’s competitor?</h2>



<p>Two former Meta employees with extensive backgrounds in blockchain development, Mo Shaikh and Avery Ching, have partnered to create Aptos Labs. Drawing on their experience with the Diem codebase, they&#8217;ve set out to establish a new kind of blockchain network: one that’s both scalable and secure enough to compete with Bitcoin and Ethereum. Using the programming language Move, they’ve developed a decentralized infrastructure that boasts high throughput, low latency, and verifiable state synchronization. By combining Diem’s architecture with innovative new techniques, Aptos Labs aims to push the limits of what’s possible in the world of blockchain technology.</p>



<p>In the world of blockchain technology, Aptos and Sui are two players who share a lot in common. They both use Rust-based programming language called Move for seamless parallel executions. However, Sui boasts an upgraded version of Move that provides more clarity on object ownership, sharing, and mutability. Aptos, on the other hand, lacks this feature.</p>



<p>While both blockchains harness the power of Proof-of-Stake as their consensus mechanism, they each have a unique way of achieving this. Aptos relies on the BlockSTM and HotStuff protocol derivatives for parallel executions, while Sui takes advantage of Narwhal and Tusk, a DAG-based mempool that helps to achieve smooth parallelization during execution.</p>



<p>Aptos, boasting a solid testing phase with 160,000 TPS, may have been the early frontrunner, but things have taken a turn for the worse since its mainnet was released. With a current rate of only 6 TPS and 248 validators, Aptos now finds itself swimming in the shallow end of the pool. Meanwhile, Sui’s object-centric design is turning heads with its potential for parallel transactions and theoretically unlimited TPS.</p>



<h2 class="wp-block-heading" id="h2-6">SUI Token Allocation</h2>



<p>The Sui Network has unveiled a new program that will give its loyal community members the chance to get their hands on 594 million SUI tokens. But this isn’t your average token sale &#8211; the program comes with some pretty unique rules. Forget about free handouts, because there will be no airdrops involved. Instead, the program will offer different pricing tiers for general sales and whitelist sales. Everyone can purchase SUI tokens at the regular price of $0.1, but only Sui Champions and Supporters will be able to buy them at a discounted $0.03 through whitelist sales. It’s a pretty sweet deal for those who have been with the network from the start. Interested purchasers must complete account registration and verification with the applicable&nbsp;<a href="http://www.xt.com/en">crypto exchange</a>&nbsp;by April 24, 2023.</p>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td><strong>SUI Token Sale</strong></td><td><strong>Exchanges</strong></td><td><strong>Amount</strong></td><td><strong>Sale Price</strong></td><td><strong>Maximum Purchase Quantity</strong></td></tr><tr><td rowspan="2">General sale via selected exchanges</td><td>OKX</td><td>225M</td><td>$0.10</td><td>10,000 SUI</td></tr><tr><td>KuCoin</td><td>225M</td><td>$0.10</td><td>10,000 SUI</td></tr><tr><td rowspan="3">Retrospective Awards and a Recognition Sale for Sui Champions and Supporters</td><td>OKX</td><td>25M</td><td>$0.03</td><td>1,500 SUI</td></tr><tr><td>KuCoin</td><td>25M</td><td>$0.03</td><td>1,500 SUI</td></tr><tr><td>Bybit</td><td>94M</td><td>$0.03</td><td>1,500 SUI</td></tr><tr><td>Amount</td><td>&nbsp;</td><td>594M SUI</td><td>$0.083</td><td>&nbsp;</td></tr></tbody></table></figure>



<p>SUI Token on OKX Jumpstart (<a href="https://www.okx.com/jumpstart/project/10076" target="_blank" rel="noreferrer noopener">SUI OKX</a>):</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/17691662501785" alt="OKX-SUI-en.png" /></figure>



<p>SUI Token on Bybit ByStarter (<a href="https://www.bybit.com/en-US/bystarter/detail/?project_id=3" target="_blank" rel="noreferrer noopener">SUI Bybit</a>):</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/17691661443353" alt="bybit-SUI-en.png" /></figure>



<p>SUI Token on KuCoin Spotlight (<a href="https://www.kucoin.com/land/spotlight_r6/153_Sui" target="_blank" rel="noreferrer noopener">SUI KuCoin</a>):</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/17691708933401" alt="KuCoin-SUI-en.png" /></figure>



<h3 class="wp-block-heading">&nbsp;</h3>



<h3 class="wp-block-heading" id="h_01JD8ZG3QJ08QSG6TBTXGB12JJ">About XT.COM</h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What is Sui Blockchain? Everything You Need to Know About the SUI Token


<p>The Pi Network has been making waves in the crypto space with its innovative approach to digital currency. By offering users many of the benefits that come with Bitcoin but avoiding potential pitfalls, they have garnered a great deal of attention from both exchanges and investors alike who are eager for an alternative solution. To make sure your decision is well informed before joining this new initiative, it can be helpful to brush up on what sets Pi apart and understand how their goal promises greater success than other existing cryptocurrencies.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/14590777794713" alt="pi-cover.jpg" /></figure>



<h3 class="wp-block-heading">Contents in this article:</h3>



<p><a href="#h2-1">What is PI Network?</a></p>



<p><a href="#h2-2">What is PI coin?</a></p>



<p><a href="#h2-3">How does Pi Network work?</a></p>



<p><a href="#h2-4">How to trade PI coin on XT.COM?</a></p>



<h2 class="wp-block-heading" id="h2-1">What is PI Network?</h2>



<p>PI Network is a mobile application that started in 2019 as an effort to bridge the gap between cryptocurrency and everyday users. It doubles as a secure digital currency platform and a social network, allowing people to earn rewards by securely participating in transactions on the PI Network blockchain. PI Network features a Proof of PI consensus mechanism which ensures that PI holders are rewarded for verifying transactions and building trust within the PI Network community. As more and more users join, PI’s value is expected to rise over time as its user base grows. This platform is positioned to inspire mass adoption of cryptocurrency worldwide, creating an economy of stakeholders who are empowered and incentivized to expand its use.</p>



<p>In 2018, the brains behind Pi Network, Nicholas Kokkalis and Chengdiao Fan of Stanford University fame, set out to make digital money available for everyone. The hard work paid off when on 14 March 2019 they released a whitepaper introducing Pi Network with its very own app. Now users all over can join in! With this project, investors have the chance to create a positive environmental impact. In crypto markets where proof-of-work (PoW) has been heavily criticized for its large energy consumption and resulting damage to the environment, sustainability is an attractive investment opportunity.</p>



<p>PI Network works via a mobile app which is connected to cloud services that enable users to monitor the network in real-time and analyze data collected. PI Network enables miners, using the PI Coin, to mine PI blockchains while helping in verifying transactions that take place between different peers. Miners are rewarded with PI coins for their contributions to the network’s security.</p>



<p>The Pi Network app makes it easy to get your hands on crypto tokens without needing any tech savvy or mining hardware. All that’s required is a phone and an invitation code from someone already using the network, allowing you to join in just minutes! Once part of this revolutionary community, simply hit one button each day for 24 hours straight &#8211; doing so will prove you’re not robotic and earn yourself some Pi coins at no extra cost. But if referring more friends catches your interest then why stop there? With every successful referral made through their system not only do they benefit but so too does the user with added earnings off top of what has come before.</p>



<h2 class="wp-block-heading" id="h2-2">What is PI coin?</h2>



<p>PI coin is a very unique cryptocurrency that has been gaining momentum recently due to its innovative approach in the digital asset arena. PI coin is focused on increasing global financial inclusion while also striving to become one of the most efficient blockchain networks. PI coin stands out from other cryptocurrencies because it makes achieving goals such as low energy consumption, fast and secure transactions, and expansive usage for holders possible through its proprietary consensus mechanism. PI coin provides individuals with an opportunity to join a new type of economy which decreases centralization by giving anyone access to integrated financial services without any minimum deposits necessary.</p>



<p>PI coins can then be used as a payment method within the PI Network ecosystem and can also be traded on exchanges, allowing users to store their wealth without worrying about market volatility and fluctuations. PI coins offer low transaction fees allowing users to make online payments without worry of high costs often associated with traditional fiat currencies such as credit card fees or bank transfer fees. PI coin is definitely worth keeping an eye on as this platform continues to gain traction and increase in popularity.</p>



<h2 class="wp-block-heading" id="h2-3">How does Pi Network work?</h2>



<p>Pi Network stands out from other crypto projects due to its innovative use of the Stellar Consensus Protocol and Federated Byzantine Agreement technologies, which allow users to earn rewards while providing a secure network without any central authority. With Pi’s cutting-edge infrastructure, individuals can participate in an ecosystem where everyone is both rewarded for their contribution and protected by strong security measures.</p>



<p>On Pi, users may play one of four roles:</p>



<ul class="wp-block-list">
<li>Pioneer: Miners who mine Pi by tapping the lightning button. There were more than 35 million Pioneers, as of 16 January 2023.</li>



<li>Contributor: A participant who provides a list of trustworthy users to the network in exchange for an incentive.</li>



<li>Ambassadors: Participants who promote new users to the network using their referral code receive a bonus.</li>



<li>Nodes: Participants using the Pi node software on their home computers</li>
</ul>



<p>The Pi network intends to create an idea of token scarcity while ensuring that a sizable amount of the tokens are not concentrated in the hands of a few people. Given this, the Pi economic model operates on four different models:</p>



<ul class="wp-block-list">
<li>Simple: Creating an intuitive and transparent economic model</li>



<li>Fair Distribution: The asset’s price would give several people access to Pi tokens, unlike the first-generation protocols</li>



<li>Scarcity: Create a form of scarcity to maintain its price</li>



<li>Meritocratic Mining: Incentivising user engagements by rewarding their contributions to the network</li>
</ul>



<p>In a little over a year, the blockchain project Pi Network has seen remarkable growth and adoption. The Pi network project has experienced tremendous growth since its release in 2019, with only 100,000 active users at the start and a whopping 33 million today.</p>



<h2 class="wp-block-heading" id="h2-4">How to trade PI coin on XT.COM?</h2>



<p><a href="https://www.xt.com/en">XT.COM</a>&nbsp;opened&nbsp;<a href="https://www.xt.com/en/trade/pi_usdt" target="_blank" rel="noreferrer noopener">PI/USDT</a>&nbsp;trading pair in Innovation Zone (Hot Coin) at 03: 00 on December 29, 2022 (UTC).</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/14590804635929" alt="pi-usdt-spot-en.jpg" /></figure>



<p><a href="https://www.xt.com/en">XT.COM</a>&nbsp;added PI network (<a href="https://www.xt.com/tradePro/pi3l_usdt">PI3L/USDT</a>,&nbsp;<a href="https://www.xt.com/tradePro/pi3s_usdt">PI3S/USDT</a>) in ETF Zone at 08:00 (UTC) on January 04, 2023.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/14590804306585" alt="pi-usdt-etf-en.jpg" /></figure>



<p><a href="https://www.xt.com/en">XT.COM</a>&nbsp;listed&nbsp;<a href="https://www.xt.com/en/futures/trade/pi_usdt">PI/USDT USDT-M perpetual contract</a>&nbsp;(1-10x leverage) at 08:00(UTC) on January 05, 2023.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/14590778102169" alt="pi-usdt-futures-en.jpg" /></figure>



<h3 class="wp-block-heading">&nbsp;</h3>



<h3 class="wp-block-heading" id="h_01JD8W2RV6KHV9QN77JQPBBVJM">About XT.COM</h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What is PI Network and how to trade PI coin on XT.COM


<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563167226393" alt="USDT-M-PERPETUAL-COVER-EN.jpg"/></figure>



<h3 class="wp-block-heading"><strong>Contents of this article</strong></h3>



<p><a href="#h2-1">What are USDT Margined futures contacts?</a></p>



<p><a href="#h2-2">What are USDT Margined (Collateralized) perpetual contracts?</a></p>



<p><a href="#h2-3">How to trade USDT Margined Perpetual Futures on XT.COM</a></p>



<h2 class="wp-block-heading" id="h2-1">What are USDT Margined futures contacts?</h2>



<p>USDT Margined futures contracts are a type of financial instrument that allow traders to buy and sell commodities, equities, or other assets using USDT as collateral. These contracts give traders the ability to take positions in volatile markets while maintaining minimal exposure to risk, since they can liquidate their contract at any time by redeeming their USDT collateral. Additionally, many exchanges like&nbsp;<a href="https://www.xt.com/en/futures">XT.COM futures</a>&nbsp;offer margin trading for USDT Margined futures contracts, allowing investors to leverage their capital and increase their potential returns. This means that investors can leverage their capital by borrowing additional funds from the exchange based on the value of their initial position. While this can lead to higher returns, it also increases the risk of losses if the market moves against their position. Overall, USDT Margined futures contracts are a valuable tool for traders and speculators looking to participate in the fast-paced world of financial markets. Whether you are looking to take short positions or make long-term investments, these contracts can help you achieve your trading goals by allowing you to trade with minimal capital and take advantage of changing market conditions.</p>



<h3 class="wp-block-heading" id="h_01JD8TTXD5Y10R0FGK1018RGF9">Characteristics of USDT-margined Contracts&nbsp;</h3>



<p>USDT-margined futures contracts are more suitable for risk hedging and arbitrage. Due to the fact that there is no borrowing and lending of funds, the participants do not need to pay interest on their positions, so that they can benefit from a higher trading margin rate. Compared with other traditional products, USDT-margined futures contracts are less risky and more efficient. Furthermore, USDT-margined futures contracts enable investors to take either long or short positions, offering them a much wider range of choices.</p>



<p>Profit in USDT and know exactly what you’ll make! USDT-margined contracts take the guesswork out of cryptocurrency trading. By using a stablecoin pegged to the US dollar, traders can easily estimate their returns &#8211; no more having to convert BTC into fiat or being unsure of what that 500 was worth at conversion time. With these linear futures products, making profits simply means standing by as your account balance steadily increases in real U.S dollars – just like folding money!</p>



<h3 class="wp-block-heading" id="h_01JD8TTXD5HCKND7PPRRT6R0QC">Mechanism for USDT-margined Contract</h3>



<p>USDT-margined contracts implement price-time-priority algorithm, the earliest active buy order at the highest price takes priority over any subsequent order at that price, which in turn takes priority over any active buy order at a lower price. When the margin ratio is equal to or less than 0, liquidation will be triggered for the position.</p>



<p>The formulas are as below:</p>



<p>Isolated Margin Ratio = Account Equity / Occupied Margin * 100% – Adjustment Factor;</p>



<p>Cross Margin Ratio = Account Equity / ∑All Contracts in the Cross Margin Account (Occupied Margin * Adjustment Factor）– 100%</p>



<h2 class="wp-block-heading" id="h2-2">What are USDT Margined (Collateralized) perpetual contracts?</h2>



<p>USDT Margined (Collateralized) perpetual futures contracts are a new type of investment instrument, which enable traders to speculate on the value of cryptocurrencies. This type of contract allows traders to effectively ‘borrow’ USDT from the underlying exchange in order to leverage their trades, with the USDT collateral being held as security for any potential losses or gains that may arise from opening and closing these positions. The contract has no expiration date and is designed to closely track the spot price of the underlying asset via Funding mechanism. This perpetual structure provides perpetual liquidity, meaning there is no need to roll over trades or wait for the expiration of existing contracts. While it is certainly a risky venture due to its high-leverage nature, USDT margined perpetual futures contracts are attractive to experienced traders who want more control over their investments and exposure through more precise risk management strategies.</p>



<p>Take USDT Collateralized BTC Perpetual Contract as an example, a trader longs 1,000 contracts at a price of 10,000 USDT, and the value of a contract is 0.001 BTC. Equivalently, they are longing 1,000 * 0.001 = 1 BTC. P&amp;L Calculation equals to No. of Contracts * Multiplier * (Exit Price &#8211; Entry Price). After several days, the price rises to 12,000 USDT, so trader earn a profit of 1,000 * 0.001 * (12,000 &#8211; 10,000) = 2,000 USDT. On the contrary, a trader who is shorting the same amounts of contracts will lose 2,000 USDT during this time. (Fees are not included)</p>



<h3 class="wp-block-heading" id="h_01JD8TTXD56FF2AQJB6PKFYGNF">Terminology</h3>



<ul class="wp-block-list">
<li>P&amp;L</li>
</ul>



<p>P&amp;L stands for Profit &amp; Loss. All USDT collateralized contracts use USDT to calculate PnL. The Profit and Loss (PnL) is calculated as {future exit price- future entry price} x position size/future entry price. When calculate the PnL of&nbsp;<a href="https://www.xt.com/en/futures">XT.COM Futures</a>&nbsp;USDT Margined futures contacts, traders need to consider three aspects: the expenditure of service fees, the income or expenditure of funding fees, and the profit and loss of closing positions. Click&nbsp;<a href="https://xtsupport.zendesk.com/hc/en-us/articles/7279950434073-Profit-and-Loss-Calculation">here</a>&nbsp;to check more details.</p>



<ul class="wp-block-list">
<li>Leverage and Margin</li>
</ul>



<p>Leverage in these contracts allows traders to open a larger position than their capital would normally allow by trading with borrowed funds. Leverage is an extremely powerful tool that can be used to increase both gains and losses when trading perpetual futures contracts. Leverage also impacts the amount of margin required to open a position since higher leverage equates to a lower initial margin requirement. Leverage is therefore a critical factor for traders looking at perpetual futures contracts and should be carefully considered if utilizing this type of contract.</p>



<p>Margin refers to the difference in margin requirements between margin deposits and margin calls. Margin deposits are the funds placed into an account for margin purposes, whereas margin calls require additional funds due to market changes or potential losses. Thus, margin establishes the amount of money required to have reasonable protection from adverse price movements and to from losses in a perpetual futures contract. This helps maintain stability in the markets and enables traders to enter positions with reasonable certainty that their margin requirements will not be detrimental if prices move against them.</p>



<ul class="wp-block-list">
<li>Liquidation</li>
</ul>



<p>Liquidation in a perpetual futures contract is when a trader’s account balance falls to an amount that doesn’t meet the maintenance margin. This happens when the losses that are associated with their open trades surpass the available margin in their trading account. Liquidation acts as a mechanism to ensure that traders continually maintain sufficient funds in their trading accounts to honor the risk associated with their open positions. Liquidation also helps traders avoid unfavorable pricing caused by illiquid markets or manipulation of prices. Liquidation limits the potential losses of a trader while providing safe and secure markets for everyone involved.</p>



<ul class="wp-block-list">
<li>Market Price, Mark Price and the Index Price</li>
</ul>



<p>Market Price: Market Price is the current fair value of an underlying asset including its basis spread, funding rate, and insurance fund factor. Market Price will constantly adjust through the day from trades being executed with buyers and sellers. Market Price is used to set the amount of margin required to maintain a position in perpetual futures contract as well as when a user wishes to open a new position. Market Price plays an important role in dictating how much margin a trader or investor needs to maintain their positions on the exchange based upon their financial goals and strategies.</p>



<p>Mark Price: Mark Price is typically set equal to the underlying index price and acts as a reference point when executing trades and calculating margin requirements. Mark Price also serves as the starting point for Mark-to-Market calculations in which gains and losses resulting from changes in price are automatically settled within a futures contract. Mark Price allows traders of perpetual futures contracts to be able to enter and exit their positions with greater certainty that their differences will be calculated accurately and reliably.</p>



<p>Index Price: Index Price refers to the current market price of a perpetual futures contract. Index prices are determined by taking the average of all bids and offers in that particular contract. Index Price is an important factor regarding calculating your margin requirement when trading perpetual futures contracts, as it allows you to calculate how much money you need to set aside in order to cover potential losses on any open positions you have. If Index Price drops, then so does your margin requirement, whereas if Index Price increases, then so does your margin requirement. It is critical for traders to stay up to date with Index Price in order to adjust their strategy accordingly and remain profitable. Check&nbsp;<a href="https://www.xt.com/en/futures/information/index">XT.COM Futures index price</a>&nbsp;here.</p>



<ul class="wp-block-list">
<li>Isolated Margin and Cross Margin</li>
</ul>



<p>Isolated Margin: Isolated Margin is a type of margin offered with perpetual futures contracts. This type of margin allows traders to manage their risk in a more efficient way by allowing only part of their position to be automatically liquidated if there is a significant price movement. Isolated Margin also provides traders plenty of liquidity while they maintain open positions, allowing them to make more strategic decisions when the markets move quickly.</p>



<p>Cross Margin: Cross Margin is an optional margin mode that reduces the margin requirement for traders, allowing them to take on larger positions without having to deposit extra funds into their account. Cross Margin works by allowing traders to spread their total account collateral over all of the positions held in the same contract. Therefore, Cross Margin ensures that traders have adequate margin levels across all positions in a particular contract and can allow them to increase their position size if desired.</p>



<ul class="wp-block-list">
<li>Perpetual Funding Rates</li>
</ul>



<p>Funding Rates in perpetual futures contract margin is a payment that occurs between Funding Pairs. Its purpose is to encourage both Funding Providers and Funding Receivers to maintain equality between the long and short sides of the contract. Funding Rates also provide an incentive for Funding Providers by encouraging them to hold positions at, or nearer to, the Funding Target Price. A Funding Provider is anyone who is long on the contract and a Funding Receiver is anyone who is short on the contract. Funding Rates are calculated in accordance with the Spot Index Price and Fair Price Mark, payable in USDT tokens. Whenever Funding Rate occurs, all positions held within that particular perpetual futures contract will be affected, warranting frequent monitoring from involved parties. Check&nbsp;<a href="https://www.xt.com/en/futures/information/fund-rate">XT.COM Futures funding rates</a>&nbsp;here.</p>



<ul class="wp-block-list">
<li>Risk Protection Fund</li>
</ul>



<p>Risk Protection Fund is a mandatory fund in perpetual futures contracts which ensures that there’s always margin available to serve as collateral. Spin-off products, such as swap futures and options, also use Risk Protection Funds to back up the customer accounts in order to cover any losses over and above their own contribution. The Risk Protection Fund helps protect traders against any market force or technical issues that can cause instant liquidation of their positions due to insufficient margin. Visiting traders are only required to pay a small expense ratio instead of upfront payments, allowing them more freedom to explore new opportunities and take greater risks knowing the Risk Protection Fund has them covered. Check&nbsp;<a href="https://www.xt.com/en/futures/information/risk-fund">XT.COM Futures risk protection fund</a>&nbsp;here.</p>



<h2 class="wp-block-heading" id="h2-3">How to trade USDT Margined Perpetual Futures on XT.COM</h2>



<p>Welcome to our tutorial on how to trade USDT-M perpetual futures contracts.</p>



<p>1.&nbsp;<a href="https://www.xt.com/en/accounts/register">Register an account</a>&nbsp;or&nbsp;<a href="https://www.xt.com/en/accounts/login">log in</a>&nbsp;to XT.COM</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563575726873" alt="1-XT-signup-EN.png"/></figure>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563577485465" alt="1-XT-login-EN.jpg"/></figure>



<p>2. Click&nbsp;<a href="https://www.xt.com/en/futures">Derivatives</a>&nbsp;on the navigation bar and tap “<a href="https://www.xt.com/en/futures/trade/btc_usdt">USDT-M Futures</a>” to enter into the trading page.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563571677337" alt="2-en.jpg"/></figure>



<p>3. To begin trading, choose an asset from the left panel. For example: Selecting&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT Perpetual</a>.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563680644761" alt="3-Select-asset-en.jpg"/></figure>



<p>4. Then, based on your judgement, choose “Open Long” or “Open Short”. You can place a bet on the future direction of the market by buying or selling contracts. A long position means you expect the market to rise, while a short position means you expect it to fall.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563680378009" alt="4-long-short-en.jpg"/></figure>



<p>5. If we place a limit order, there will be three different types of limit orders that we can place: GTC, IOC, and FOK.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563667336985" alt="5-en.jpg"/></figure>



<p>6. After choosing an order type, select the margin mode, unit, and leverage for trading. You can use “BTC” or “USDT” as a unit to calculate trading cost and profits.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563667591705" alt="6-en.jpg"/></figure>



<p>7. Enter the price, amount, and click “Open Long” to place the order.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563667735961" alt="7-en.jpg"/></figure>



<p>8. As soon as you place your order, click on “Filled Positions” to check whether it has been filled or not. The orders that have been completed will be listed under “Current Positions”, while the ones that haven’t been filled yet will be shown under “Open Orders”.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563681533977" alt="8-en.jpg"/></figure>



<p>9. If you want to close a position, you can choose an order type, enter the price and amount, and choose a leverage to close the position.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13563681740953" alt="9-en.jpg"/></figure>



<h3 class="wp-block-heading" id="h_01JD8TVWHVV1C43CGDX1SAE4GE">About XT.COM</h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What is USDT-M Perpetual Futures Trading and How to Trade USDT-margined Futures on XT Futures


<p>The Bitcoin halving is a key event in the crypto world, and one that impacts both miners’ rewards as well as price speculation. On May 11th 2020 we saw this happen for the third time since its inception over ten years ago, cutting miner reward per block from 12.5 BTC to 6.25 BTC. This has caused some unease among investors who are used to ever-increasing returns from mining activities but with it placing further constraints on supply of new coins means scarcity should potentially increase which could see prices rise again when speculators enter back into markets after 2024’s likely 4th halving round occurs!</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13897339173017" alt="bitcoin-halving-1.jpg"/></figure>



<h3 class="wp-block-heading">Table of Contents</h3>



<p><a href="#h2-1">What is Bitcoin halving?</a></p>



<p><a href="#h2-2">How does Bitcoin halving work?</a></p>



<p><a href="#h2-3">How to trade Bitcoin halving?</a></p>



<p><a href="#h2-4">Why Bitcoin halving occurs?</a></p>



<p><a href="#h2-5">What happens to Bitcoin prices during halving?</a></p>



<p><a href="#h2-6">What are implications of the Bitcoin halving event?</a></p>



<h2 class="wp-block-heading" id="h2-1">What is Bitcoin halving?</h2>



<p>Bitcoin halving is a process that occurs roughly every four years where the reward for mining new blocks is halved, meaning miners receive 50% fewer bitcoins for verifying transactions. This reduction in bitcoin supply has been implemented to control bitcoin inflation, making bitcoin an increasingly scarce resource over time. After every four years, the block rewards halving occurs and will proceed up until 2140 when it reaches completion. By that point in time, Bitcoin’s maximum supply limit would have been reached &#8211; shifting miners’ incentives to transaction fees provided by users for verifying transactions. As bitcoin becomes more and more scarce, speculation in its future value increases, thus raising its overall market price &#8211; something that any early bitcoin adopter should be sure to keep an eye on. Additionally, bitcoin halving encourages miners to increase efficiency by pushing them to develop new methods of creating bitcoin faster or else face losing out on rewards. As such, bitcoin halving offers an interesting insight into the delicate balance between production and demand in matters of digital currency.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13897552442905" alt="bitcoin-halving-rewards.png"/></figure>



<h3 class="wp-block-heading" id="h_01JD8VMEQ6GP7A11ZWQA54DEA4">The history of Bitcoin halving</h3>



<p>Bitcoin has seen immense growth since its inaugural 2009 launch, with the first halving occurring in 2012. This event sparked questions of how Satoshi’s economic principles would shape Bitcoin’s future &#8211; will it succeed or collapse? On November 28th, 2012 the reward for mining a single block reduced from 50BTC to 25BTC; this event was met by incredible success as 1 BTC surged over 8500% within twelve months to a staggering $1,031.95. By that time 210,000 blocks had been mined and half of all Bitcoin (10.5 million) entered circulation.</p>



<p>The crypto community were eagerly awaiting the second halving in 2016, with investors beginning to take more of an interest and increased acceptance for bitcoin. This heightened anticipation led to a short-term price growth ahead of July 9<sup>th</sup>’s highly anticipated date. When the commitment of miners to Bitcoin was renewed with block 420,000 and rewards were halved to 12.5 BTC per mined block, some cautionary market behavior ensued as predicted. As it turns out however, this hesitation only served to establish a platform for unprecedented growth and success; 526 days later one bitcoin reached an unsurpassed peak value of $20k &#8211; exceeding even the most optimistic evaluations.</p>



<p>With the 2020 halving, Bitcoin was entering a new era amidst much uncertainty due to the COVID-19 crisis. The economics of Satoshi’s design proved powerful as BTC surged from an eventual $8787/BTC rate around May 11th at block number 630,000 all way up to over $66K/BTC 18 months later &#8211; showcasing its resilience and potential in tumultuous times.</p>



<p>Even though Nobody knows exactly when the next halving will occur, cryptocurrency experts predict that the next Bitcoin halving is likely to occur in May of 2024, approximately four years after the last event.</p>



<h2 class="wp-block-heading" id="h2-2">How does Bitcoin halving work?</h2>



<p>Bitcoin mining is the process of using computers to discover and confirm bitcoin transactions on the bitcoin blockchain, which is a distributed public ledger, then add them to the previous ledgers and releasing new bitcoins into circulation. All bitcoin miners compete with each other to solve a difficult mathematical puzzle in order to find the next bitcoin block, have it confirmed by bitcoin network, then receive money as a reward for their efforts.</p>



<p>With a decentralized network of validators verifying Bitcoin transactions, miners are rewarded with 6.25 BTC when they complete the computationally intensive task of solving complex mathematical equations to add new blocks to the blockchain &#8211; an integral part in ensuring that all exchanges remain secure and verifiable. With a market value of over $148,000 for 6.25 Bitcoin (BTC), miners have no shortage of incentive to ensure that the blockchain operates as it should: smoothly and securely processing transactions. Miners are given a reward every 10 minutes for their hard work when they add blocks of transactions to the Bitcoin network. However, this bounty is halved approximately every four years after 210,000 blocks have been created.</p>



<h2 class="wp-block-heading" id="h2-3">How to trade Bitcoin halving?</h2>



<p>Bitcoin’s halving event offers traders a huge opportunity. Jump onboard the crypto phenomena and speculate on bitcoin’s future price using&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>, or purchase the coins directly through&nbsp;<a href="https://www.xt.com/en">XT Crypto Exchange</a>.&nbsp;</p>



<p>For Bitcoin spot trading:&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt" target="_blank" rel="noreferrer noopener">BTC/USDT</a></p>



<p>For Bitcoin futures trading:&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT Perpetual</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USD Perpetual</a></p>



<p>Discover more about&nbsp;<a href="https://xtsupport.zendesk.com/hc/en-us/articles/13414665747865-Bitcoin-Futures-Trading-A-Comprehensive-Guide">bitcoin futures trading</a></p>



<h2 class="wp-block-heading" id="h2-4">Why Bitcoin halving occurs?</h2>



<p>Bitcoin halves due to the design of its software, which was created by a mysterious person or group using the assumed pseudonym ‘Satoshi Nakamoto’. Satoshi Nakamoto’s mysterious motivations for the halving system remain shrouded in secrecy. However, it is widely suggested that this clever mechanism was created to strategically disperse coins early on as an incentive for miners to join and support Bitcoin’s blockchain network. According to this theory, block rewards were strategically halved at regular intervals in order to safeguard the increasing value of each reward as more miners joined the network.</p>



<p>With only a limited supply of 21 million, the scarcity and value of bitcoin is secured through its halving process. As blocks are mined, each block brings with it fewer bitcoins than before until that ultimate limit of 21 million has been reached &#8211; when no new coins can be issued. At this point existing holders will benefit from an increase in demand as supplies become increasingly scarce. Bitcoin halving is an integral part of the bitcoin system. It is programmed into bitcoin’s protocol which, in turn, triggers a reduction in miner rewards roughly once every four years. This process reduces bitcoin supply by cutting the miner rewards that are issued for solving complex cryptographic puzzles associated with bitcoin mining.</p>



<h2 class="wp-block-heading" id="h2-5">What happens to Bitcoin prices during halving?</h2>



<p>Looking into the past, bitcoin halving appears to have a substantial impact on its value in the market. It is important to remember however that this effect can be outweighed by other influencing elements at play.</p>



<p>First halving: In 2012, the first halving of Bitcoin saw its price rise from an underwhelming $11 to a much more promising $12. Taking only 12 months for it to soar up towards the thousands, with prices reaching around an astonishing $1,100 in that same timespan.</p>



<p>Second halving: In 2016, the bitcoin network reached a major milestone: 420,000 blocks completed. This was also when the second halving of Bitcoin occurred &#8211; an event that preceded its dramatic price increase. Following several months in which it fluctuated between $500-$1,000 per coin, by December 2017 it had skyrocketed to nearly $20,000.</p>



<p>Third halving: In May 2020, the third halving of Bitcoin occurred and it marked another powerful surge in its value. Within a few months, this cryptocurrency rose from an estimate $9000 to a staggering $30 000 by year-end. On April 14, 2021, a bitcoin’s price soared to $63,233 (an astonishing 617% increase from its pre-halving price). A month later, on May 11, 2021, a bitcoin’s price was $49,504, representing a 461% increase that seems more consistent with the behavior of the 2016 halving.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/13898085173145" alt="bitcoin-halving-price.jpg"/></figure>



<h2 class="wp-block-heading" id="h2-6">What are implications of the Bitcoin halving event?</h2>



<p>It has implications on bitcoin miners as they now have to compete harder to earn payouts due to the smaller rewards, potentially resulting in fewer miners. The eventual long-term implications are unclear, however there may be less energy consumption required to support bitcoin mining with fewer miners in the market. Supporters of bitcoin also tout that rarity created by bitcoin halving will drive up its price due to greater demand while detractors view it delaying bitcoin’s mainstream adoption because it requires a much higher investment than before.</p>



<p>Halving is also a big deal for cryptocurrency investors. It’s when the amount of coins issued to miners per block gets cut in half, reducing supply and driving up prices due to increased demand &#8211; typically good news for crypto traders. Even though each halving has its own unique conditions that influence price changes, trading activities are often boosted leading into it as people anticipate what will happen next. All in all, it can certainly have an impact on investors and bitcoin miners alike as both parties will adjust according to the changing dynamics of bitcoin’s scarcity and supply.</p>



<h3 class="wp-block-heading" id="h_01JD8VMEQ65HXYQ0G7PK8V3VHZ"><strong>About XT.COM</strong></h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


How Bitcoin Halving Influences Supply, Demand, and Price Trends

Bitcoin Halving


<figure class="wp-block-image size-large"><img data-recalc-dims="1" loading="lazy" decoding="async" width="1024" height="597" data-attachment-id="2142" data-permalink="https://xtexchangeblog.wpcomstaging.com/en/the-reverse-position-feature-in-futures/xt-futures-cover-4/" data-orig-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1200%2C700&amp;ssl=1" data-orig-size="1200,700" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="xt-futures-cover" data-image-description="" data-image-caption="" data-medium-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=300%2C175&amp;ssl=1" data-large-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1024%2C597&amp;ssl=1" src="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&#038;ssl=1" alt="xt-futures-cover" class="wp-image-2142" srcset="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&amp;ssl=1 1024w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=300%2C175&amp;ssl=1 300w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=768%2C448&amp;ssl=1 768w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?w=1200&amp;ssl=1 1200w" sizes="auto, (max-width: 1000px) 100vw, 1000px" /></figure>



<h3 class="wp-block-heading"><strong>Table of Contents</strong></h3>



<p><a href="#h2-1">What is XT.COM Futures Grid trading?</a></p>



<p><a href="#h2-2">Futures Grid Bot offers three (3) ways</a></p>



<p><a href="#h2-3">Options and parameters</a></p>



<p><a href="#h2-4">XT.COM futures grid profit and loss calculation</a></p>



<h2 class="wp-block-heading" id="h2-1"><strong>1.What is XT.COM Futures Grid trading?</strong></h2>



<p><a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">Futures grid trading</a>&nbsp;is an automated strategy that uses market fluctuations to trade futures contracts with preset intervals within a specific price range to make a profit. The strategy will continuously buy low and sell high for each grid defined, and profit from the volatile market.</p>



<p>The futures grid currently supports all&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">USDT-margined futures</a>&nbsp;and will support&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">crypto-margined futures</a>&nbsp;in the future.</p>



<h2 class="wp-block-heading" id="h2-2"><strong>2.Futures Grid Bot offers three (3) ways</strong></h2>



<h4 class="wp-block-heading"><strong>2.1 Long mode is suitable for volatile market conditions where prices are rising. Long grids will enter long positions upon creation at market price, and take profits by closing long positions when the price rises.</strong></h4>



<p><strong>Example:</strong></p>



<p>Suppose Trader creates a Futures Grid Bot strategy on XT.COM based on the following parameters:</p>



<p>Futures trading pair：BTCUSDT</p>



<p>Market price：35,000 USDT</p>



<p>Upper price：45,000 USDT</p>



<p>Lower price：20,000 USDT</p>



<p>Number of grids: 5</p>



<p>Grid mode：Geometric</p>



<p>Leverage：5x</p>



<p>Intervals：17.61% ≈( (45,000/20,000)(1/5)&nbsp; – 1)*100%</p>



<p><strong>Note:</strong></p>



<p>Geometric: Each grid has an equal price difference ratio. For example, if the interval is 17.61%. The price of the next order will be 17.61% higher than the previous price.</p>



<p>The system will calculate the price of each grid and place your orders with 2x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows.&nbsp;</p>



<p>20,000 Buy Limit (Open Long)</p>



<p>23522 Buy Limit (Open Long)</p>



<p>27664 Buy Limit (Open Long)</p>



<p>Market price: 35000（No order will be placed）</p>



<p>37075 Sell Limit (Close Long)</p>



<p>45000 Sell Limit (Close Long)</p>



<p>Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 45,000 USDT or falls below 20,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.</p>



<h4 class="wp-block-heading"><strong>2.2 Short mode is suitable for volatile market conditions where prices are falling. Short grids will enter short positions upon creation at market price and take profits by closing short positions when the price falls.</strong></h4>



<p><strong>Example:</strong></p>



<p>Suppose Trader creates a Futures Grid Bot strategy on XT.COM based on the following parameters:</p>



<p>Derivatives trading pair：BTCUSDT</p>



<p>Market price：30,000 USDT</p>



<p>Upper price：45,000 USDT</p>



<p>Lower price：20,000 USDT</p>



<p>Number of grids：5</p>



<p>Grid mode：Arithmetic</p>



<p>Leverage：5x</p>



<p>Intervals：5,000 = (45,000 − 20,000)/5</p>



<p><strong>Note:</strong></p>



<p>Arithmetic: Each grid has the same price difference. For example, if the interval is 5,000 USDT. The price of the next order will be 5,000 USDT higher than the previous price.</p>



<p>The system will calculate the price of each grid and place your orders with 5x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows:</p>



<p>45000 Sell Limit (Open Short)</p>



<p>40000 Sell Limit (Open Short)</p>



<p>35000 Sell Limit (Open Short)</p>



<p>Market price: 30,000（No order will be placed）</p>



<p>25000 Buy Limit (Close Short)</p>



<p>20000 Buy Limit (Close Short)</p>



<p>Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 45,000 USDT or falls below 20,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.</p>



<h4 class="wp-block-heading"><strong>2.3 For neutral mode, the bot will short the futures contracts when price is above the base price and long the futures contracts when the price is below the base price. The bot will place long orders below the base price and short orders above the base price. When the market price hits the preset price, the long/short position will be opened, depending on which order direction is filled.</strong></h4>



<p><strong>Example</strong><strong>:</strong></p>



<p>Futures：BTC USDT perpetual</p>



<p>Price：20000-45000</p>



<p>Number of grids：5</p>



<p>Grid mode: Arithmetic</p>



<p>Leverage：5</p>



<p>Intervals：5000 = (45000 − 20000)/5</p>



<p><strong>Note:</strong></p>



<p>For Arithmetic, each grid has the same price difference. For example, if the interval is 5000</p>



<p>USDT, then the grids are: 20000, 25000, 30000, 35000, 40000, 45000。Market price: 35000.</p>



<p>45000 Open Short</p>



<p>40000 Open Short</p>



<p>35000 No order will be placed</p>



<p>30000 Open Long</p>



<p>25000 Open Long</p>



<p>20000 Open Long</p>



<p>Your Grid bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 45,000 USDT or falls below 20,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.</p>



<p>Users can select the corresponding futures grid strategy based on its insight on the market outlook.</p>



<h3 class="wp-block-heading" id="h2-3"><strong>3.Options and parameters</strong></h3>



<h4 class="wp-block-heading"><strong>3.1 Setup Options</strong></h4>



<p>AI strategy: Use the parameters recommended by backtested strategy (These parameters are based on a 7 days’, 30 days’, and 180 days’ backtest of this pair).</p>



<p>Set myself: Set parameters based on your own analysis of the market.</p>



<h4 class="wp-block-heading"><strong>3.2 Grid Trading Parameters</strong></h4>



<p><strong>Grid &#8211; Arithmetic grid:</strong>&nbsp;It keeps the same common difference between each grid. (For example: 1, 2, 3, 4.)</p>



<p><strong>Grid &#8211; Geometric grid:</strong>&nbsp;It keeps the same common ratio between each grid. (For example: 1, 2, 4, 8.)</p>



<p><strong>Lower price:</strong>&nbsp;The bot will stop placing orders when the market price is lower than the lowest price.</p>



<p><strong>Upper price:</strong>&nbsp;The bot will stop placing orders when the market price is higher than the highest price.</p>



<p><strong>Grid quantity:</strong>&nbsp;The number of grids represents the number of pending orders divided in the price range. For example, if the price range is 10000-40000, the mode is arithmetic, and the number of grids is 3, it is divided into three grids: 10000-20000, 20000-30000, and 30000-40000.</p>



<p><strong>Initial Margin:</strong>&nbsp;After entering the lower price or upper price, calculate the minimum initial margin according to the formula. The minimum initial margin ≤ filled initial margin ≤ futures account balance.</p>



<p><strong>Grid trigger:</strong>&nbsp;The grid orders will be triggered when the last price or mark price rises above or falls below the trigger price you enter.</p>



<p><strong>Stop trigger:</strong>&nbsp;The Stop_upper_limit needs to be higher than the upper price limit, latest price, and trigger price. When the market price reaches the Stop_upper_limit, the grid will stop its operation.</p>



<p>The Stop_lower_limit should be lower than the lower price limit, latest price, and trigger price. When the latest market price reaches the Stop_lower_limit, the grid will stop its operation.</p>



<h3 class="wp-block-heading" id="h2-4"><strong>4.XT.COM futures grid profit and loss calculation</strong></h3>



<p><strong>Grid profit</strong></p>



<p>Grid profit refers to the total income generated by the automatic trading of the current futures grid strategy.</p>



<p>Grid profit = Price Interval × Trading Volume Per Grid (Long) × Grid Transaction Times − Service Fee</p>



<p><strong>Grid annualized rate of return</strong></p>



<p>Annualized Rate of Return = Total Profit/Initial Margin/Days of Operation*365*100%</p>



<p>Assuming Trader’s grid strategy runs for 24 hours:</p>



<p>Annualized Rate of Return = 500/10,000/1 × 365 × 100%= 18.25%</p>



<p><strong>Note:</strong></p>



<p>If the operation time of the futures grid bot is less than one day, it is counted as one day.</p>



<p>If the user manually closes the position or cancels the order, the grid strategy will be terminated.</p>



<h3 class="wp-block-heading"><strong>About&nbsp;</strong><strong>XT.COM</strong></h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


XT.COM Contract Grid Strategy Overview

Contract Grid Strategy Overview


<figure class="wp-block-image size-large"><img data-recalc-dims="1" loading="lazy" decoding="async" width="1024" height="597" data-attachment-id="2142" data-permalink="https://xtexchangeblog.wpcomstaging.com/en/the-reverse-position-feature-in-futures/xt-futures-cover-4/" data-orig-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1200%2C700&amp;ssl=1" data-orig-size="1200,700" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="xt-futures-cover" data-image-description="" data-image-caption="" data-medium-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=300%2C175&amp;ssl=1" data-large-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1024%2C597&amp;ssl=1" src="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&#038;ssl=1" alt="xt-futures-cover" class="wp-image-2142" srcset="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&amp;ssl=1 1024w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=300%2C175&amp;ssl=1 300w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=768%2C448&amp;ssl=1 768w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?w=1200&amp;ssl=1 1200w" sizes="auto, (max-width: 1000px) 100vw, 1000px" /></figure>



<h3 class="wp-block-heading"><strong>Content of this article:</strong></h3>



<p><a href="#h2-1">What is futures contract</a></p>



<p><a href="#h2-2">Futures trading fee and settlement fee</a></p>



<p><a href="#h2-3">PNL calculations</a></p>



<p><a href="#h2-4">Mark price calculations</a></p>



<p><a href="#h2-5">Risk allocation mechanism</a></p>



<h2 class="wp-block-heading" id="h2-1"><strong>1. What is futures contract</strong></h2>



<p>XT Futures Contracts refer to the derivative of digital assets settled with USDT, BTC, and ETH. The futures contract has no funding fee, and shares the USDT-M/Coin-M margin account with the perpetual contract in the cross-margin mode.</p>



<p>It&#8217;s a contract to buy or sell a particular underlying asset at a predetermined price at a specified time in the future. It&#8217;s different from the perpetual contract in that the futures contract has a delivery date (that the contract will expire). When the futures contract expires, both buyer and seller are obliged to perform the contract and complete the contract no matter what the actual price of the underlying assets is.</p>



<p>If the settlement price is higher than the opening price, the buyer makes a profit; if the settlement price is lower than the opening price, the seller makes a profit.</p>



<p><strong>Instruction of the code of futures contracts:</strong></p>



<p>Take the BTC_USDT0106 this week as an example:</p>



<p>BTC refers to the basic currency of the futures contract; USDT refers to the quote currency of the futures contract; 0106 refers to the expiring date, that is the delivery date; this week refers to a duration of one week, that the contract will expire this week.</p>



<p>It refers to the process for settling the unrealized liquidation or a holding contract on the delivery date.&nbsp;</p>



<p>XT uses the weighted average index 1 hour before settlement as the settlement price, to prevent the risk of instant market manipulations. For more information, please refer to the contract details.</p>



<p><strong>Trading rules:</strong></p>



<p>Instead of a daily basis, XT futures contract will only be settled on the expiring date. No other contracts will be suspended during settlement.&nbsp;</p>



<p>Positions can be closed but not be opened in the last 10 minutes before the delivery.</p>



<p>The settlement time for the weekly contract is 8:00 (UTC), every Friday. The settlement time for the monthly contract is 08:00 (UTC) on the last Friday of the month, and the settlement time for the quarterly contract is 8:00 UTC, the last Friday of that quarter.</p>



<p>Contract trading may be interrupted. The duration of interruption depends on the time taken by the system to conduct the settlement and delivery. The time for interruption and recovery is different among contract varieties, that is, if BTC is still in settlement while ETH is finished, then the recovery of ETH trading is ahead of BTC.</p>



<p>After the delivery, the next week, next month, and next quarter futures inherit the K-line and futures name of the current week, current month, and current quarter for trading.</p>



<p>XT applies the mark price as the basis of liquidation and adopts the ADL and Funding Insurance mechanism like the perpetual contracts so that there will be no loss-sharing.</p>



<h2 class="wp-block-heading" id="h2-2"><strong>2. Futures trading fee and settlement fee</strong></h2>



<p><strong>Futures trading fee rate:</strong></p>



<p>1)&nbsp;Maker: 0.04%, supports VIP rate system.</p>



<p>If the order placed by the maker is not taken immediately, it will be displayed in &#8220;the depth of the market&#8221;, which will increase the depth of the market.</p>



<p>2)&nbsp;Taker: Please refer to the table of tiered fee rates.</p>



<p>Takers trade initiatively with the placed orders and reduce the existing maker orders in the market, thus reducing the depth of the market. If there are no sufficient points, the fee will be charged according to the table of tiered fee rates.</p>



<p>Settlement fee is charged the same as taker&nbsp;<a href="https://www.binance.com/en/fee/deliveryFee">fee</a>&nbsp;for all positions settled on the delivery date.</p>



<p><em>Note: Since there is a delivery date for a futures contract, no funding fee will be charged.</em></p>



<p><strong>The trading fee is calculated as:</strong></p>



<p>Trading Fee = Position Value * Funding Rate</p>



<h2 class="wp-block-heading" id="h2-3"><strong>3. PNL calculations</strong></h2>



<p>The futures contract provided by XT.COM currently supports only contracts with USDT, BTC and ETH settlements.</p>



<p>Like the perpetual contract, the PNL can be realised by operating bullish and bearish according to the market quotation. But there&#8217;s a settlement date for the futures contract that cannot be long-held.</p>



<p>The futures contract information can be viewed in the futures information:</p>



<p>The PNL for a futures contract is calculated using the formula as a perpetual contract.</p>



<ul class="wp-block-list">
<li>Long：Amount (CNT) * Face Value (CNT) * (1 /&nbsp;Avg. Open Price&nbsp;&#8211; 1 /&nbsp;Mark Price)</li>



<li>Short：Amount (CNT) * Face Value (CNT) * (1 /&nbsp;Mark Price&nbsp;&#8211; 1 /&nbsp;Avg. Open Price)</li>
</ul>



<p>The PNL for a futures contract is calculated using the formula as an inverse perpetual contract.</p>



<ul class="wp-block-list">
<li>Long：Amount (CNT) * Face Value (CNT) * (1 / Avg. Open Price &#8211; 1 / Mark Price)</li>



<li>Short：Amount (CNT) * Face Value (CNT) * (1 /&nbsp;Mark Price&nbsp;&#8211; 1 /&nbsp;Avg. Open Price)</li>
</ul>



<h2 class="wp-block-heading" id="h2-4"><strong>4. Mark price calculations</strong></h2>



<p>Traditionally, the price of a quarterly futures contract will converge with its corresponding spot price as the contract expires. As the contract runs down towards expiry, the Mark price will closely reflect spot prices, and the moving average basis component will no longer be part of the Mark price calculation. This means that the Mark price of a futures contract will be computed differently as it reaches the time of expiration.</p>



<p><strong>Before delivery date:</strong></p>



<p>USDT-M futures:</p>



<p>Mark Price = Index Price+ 5-minute Basis Moving Average</p>



<p>5-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price), measures every minute in a 5-minute interval</p>



<p>Coin-M futures:</p>



<p>Mark Price = Index Price + 30-minute Basis Moving Average</p>



<p>30-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price)，measures every minute in a 30-minute interval</p>



<p><strong>On the delivery date:</strong></p>



<p><strong>1) The time to delivery is greater than 1 hour</strong></p>



<p>USDT-M futures:</p>



<p>Mark Price = Index Price + 5-minute Basis Moving Average</p>



<p>5-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price)，measures every minute in a 5-minute interval</p>



<p>Coin-M futures:</p>



<p>Mark Price = Index Price + 30-minute Basis Moving Average</p>



<p>30-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price), measures every minute in a 30-minute interval</p>



<p>Please note:</p>



<ul class="wp-block-list">
<li>During the system upgrade or the system down that pending all trading activities, the Mark price of a Quarterly Futures Contract whose time to delivery is greater than 1 hour is calculated as follows:<br><em>Keep the Mark price formula but use the Bid1 and Ask1 at the system stop time to calculate Moving Average (5-minute Basis) until the system is back to normal.</em></li>
</ul>



<p><strong>2) Time to delivery is equal or less than 1 hour</strong></p>



<p>Mark Price = Average Index Price</p>



<p>Average Index Price = (Index Price 1 + Index Price 2 + &#8230; + Index Price n) / n，measures every second in a 1-second interval</p>



<h2 class="wp-block-heading" id="h2-5"><strong>5. Risk allocation mechanism</strong></h2>



<p>Futures contract adopt&nbsp;insurance funds&nbsp;and Auto Deleveraging to allocate and control risk.</p>



<p><strong>Rules for insurance fund:</strong></p>



<p>The insurance fund is used by XT.COM to resist the risk of massive liquidation, mainly composed of the fund provided by XT.COM and&nbsp;the liquidation surplus from the liquidation orders.</p>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td><strong>Types of Futures Contracts</strong></td><td><strong>USDT-M Futures</strong></td><td><strong>Coin-M Futures</strong></td></tr><tr><td>Rules for insurance fund</td><td>For USDT-margined futures, the insurance fund currency for all the contracts is USDT, but the pools are independent of each other.</td><td>For Coin-margined futures, contracts with different underlyings are provided with the insurance funds in the corresponding currencies.</td></tr><tr><td>Example</td><td>ETHUSDT futures (weekly, bi-weekly, monthly, bi-monthly, quarterly, bi-quarterly) has an insurance fund with currency USDT, and so does BTCUSDT futures. But their insurance fund pools are independent of each other and cannot be calculated together.</td><td>BTCUSD futures (weekly, bi-weekly, monthly, bi-monthly, quarterly, bi-quarterly) has an insurance fund with currency BTC, and all the BTCUSD futures contracts with different expiry dates share the same fund.</td></tr></tbody></table></figure>



<p><strong>Auto-Deleveraging (ADL) rules:</strong></p>



<p>Autoーdeleveraging, abbreviated as ADL, refers to a mechanism for liquidation of counterparty positions to control the platform&#8217;s overall risk when extreme market conditions or force majeure lead to insufficient of the insurance fund. After ADL is triggered, the platform will no longer use the method of placing orders on the market and waiting for a suitable price to liquidate or partially liquidate user&#8217;s positions, but directly find the counterparty account with the highest ranking and trade with the mark price at the time. After the transaction is completed, the counterparty position will be closed. The profits from the position will be added to the account balance. When the mechanism is adopted, the clawback will no longer be triggered.</p>



<h3 class="wp-block-heading" id="h_01J67X1Q29QSTKEZNG1S4DSF2S"><strong>About XT.COM</strong></h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


Futures Contract Instruction


<p>COIN-margined contracts are a type of derivatives trading product that offers traders the opportunity to trade with digital assets as collateral. These contracts offer traders a unique set of characteristics, such as leverage and low initial capital requirements, allowing them to capitalize on market volatility without having to put up large amounts of capital. Let’s take a closer look at what makes COIN-margined contracts so attractive to traders.</p>



<figure class="wp-block-image size-large"><img data-recalc-dims="1" loading="lazy" decoding="async" width="1024" height="597" data-attachment-id="2142" data-permalink="https://xtexchangeblog.wpcomstaging.com/en/the-reverse-position-feature-in-futures/xt-futures-cover-4/" data-orig-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1200%2C700&amp;ssl=1" data-orig-size="1200,700" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="xt-futures-cover" data-image-description="" data-image-caption="" data-medium-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=300%2C175&amp;ssl=1" data-large-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1024%2C597&amp;ssl=1" src="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&#038;ssl=1" alt="xt-futures-cover" class="wp-image-2142" srcset="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&amp;ssl=1 1024w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=300%2C175&amp;ssl=1 300w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=768%2C448&amp;ssl=1 768w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?w=1200&amp;ssl=1 1200w" sizes="auto, (max-width: 1000px) 100vw, 1000px" /></figure>



<h3 class="wp-block-heading"><strong>Contents of this article:</strong></h3>



<p><a href="#h2-1">1. What are COIN-margined futures?</a></p>



<p><a href="#h2-2">2. What characteristics do COIN-margined contracts offer?</a></p>



<p><a href="#h2-3">3. What are the pros and cons of COIN-margined futures?</a></p>



<p><a href="#h2-4">4. What are the differences between USDT-margined and Coin-margined Futures?</a></p>



<p><a href="#h2-5">5. What are COIN-margined perpetual contracts?</a></p>



<p><a href="#h2-6">6. How to trade COIN-margined perpetual futures on XT Futures?</a></p>



<h2 class="wp-block-heading" id="h2-1">1. What are COIN-margined futures?</h2>



<p><a href="https://www.xt.com/en/futures/trade/btc_usd">Coin-margined futures contracts</a>&nbsp;are a relatively new financial instrument that allow users to speculate on price movements while maintaining the same coin they initially invested with. This type of contract, which is offered by some&nbsp;<a href="https://www.xt.com/en">crypto exchanges</a>, such as&nbsp;<a href="https://www.xt.com/en">XT.COM</a>, allows users to hedge their coin positions without taking physical delivery of any tokens or coins. Coin-margined futures also provide margin currently unavailable with&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt" target="_blank" rel="noreferrer noopener">spot trading</a>&nbsp;and give investors greater ability to short digital coin prices with less capital requirement than spot trading. With coin-margined futures, traders can access markets, stay leveraged and enjoy significant gains in volatile markets even if the asset falls in price.</p>



<h3 class="wp-block-heading" id="h_01J67X1Q28QTP8528DPR2XAFMG"><strong>Terminology Explanation</strong></h3>



<ul class="wp-block-list">
<li><strong>Cross Margin Mode and Isolated Margin Mode:</strong>&nbsp;Cross margin mode and isolated margin mode are two separate ways coin margined futures contracts can be traded in the derivatives market. The main difference between the two is that cross margin mode requires only one unified margin instead of a position-by-position basis, while isolated margin mode has individualized margin amounts that must be managed separately. By using cross margin mode, traders are able to access more leverage than isolated margin as they can use their entire account balance to open positions. Cross margin also reduces the risk of collateral harm from happenings such as unexpected market movements or transaction errors. However, it is important to note that there is more inherent risk involved in cross margining due to its use of overall account margins.</li>



<li><strong>Limit Order, Market Order, and Trigger Order:</strong>&nbsp;A Limit Order is a coin margined futures contact that enables traders to control their coin entry and exit prices. This type of order offers the greatest level of security, allowing traders to set a maximum value they are willing to pay or sell for. If coin prices rise too much, the limit order will not be executed and therefore, traders can avoid paying too high of a price. A Market Order, on the other hand, is an instruction to buy or sell coin at the current market price. As it does not guarantee coin price, trading with Market orders is more risky since coin prices can quickly become volatile if news is released about them unexpectedly. Trigger Orders offer more security than Market Orders. They work by activating in response to coin prices hitting pre-determined levels which ensures that the trade will be successful only when the coin’s trend follows the trader’s predictions.</li>



<li><strong>Fund Fee:</strong>&nbsp;Trading in coin margined futures comes with fund fees that can be a daunting additional charge for traders. Fund fees refer to the fund’s administrative cost and don’t necessarily reflect the profitability of an individual investor. While these fund fees are difficult to avoid, investors should research which fund offerings provide the lowest fund fee rate to ensure they’re getting their money’s worth from the trading experience. Such research can save investors from unnecessary costs associated with coin margined futures trading, further diversifying their potential investments in the futures market.</li>
</ul>



<h2 class="wp-block-heading" id="h2-2">2. What characteristics do COIN-margined contracts offer?</h2>



<p>COIN-margined contracts offer traders the ability to use digital assets as collateral for their trades. This means that traders can effectively use the value of their digital assets (e.g., Bitcoin, Ethereum) as leverage when trading these products. Furthermore, because these products are margined using digital assets, there is no need for initial capital requirements which can be quite high in other markets (e.g., stock markets). This makes it easier for traders to enter into positions with lower risk and capital outlay than if they were trading traditional markets.</p>



<p>In addition, these contracts offer multi-level margin and liquidation systems which provide additional security against potential losses due to price volatility in the underlying asset. They also offer multiple order types including limit orders and market orders which enable users to quickly enter and exit positions based on their desired risk profile. Finally, there is also an integrated stop loss system which ensures that users do not suffer large losses due to extreme price movements in the underlying asset.</p>



<h2 class="wp-block-heading" id="h2-3">3. What are the pros and cons of COIN-margined futures?</h2>



<h3 class="wp-block-heading" id="h_01J67X1Q28HEKNBH9329WJFA8F">Pros of COIN-margined futures</h3>



<p>Trade Profitably in All Market Conditions &#8211; COIN-margined futures are an increasingly popular way to trade in all market conditions due to their low cost and ease of access. With COIN-margined futures, traders have the ability to capitalize on both rising and falling markets and take advantage of short-term price movements or long-term trends with little capital outlay. In addition, traders can benefit from the ability to quickly open and close positions with minimal fees or commissions. This allows them to take advantage of opportunities regardless of market conditions and can provide a steady stream of profits over time.</p>



<p>Hedge Price Risk &#8211; One of the primary advantages of trading COIN-margined futures is that they provide investors with a way to hedge their price risk. By buying and selling contracts at different prices, traders can effectively protect themselves against losses resulting from volatile markets or other external factors such as political instability or natural disasters. Additionally, these types of contracts allow for greater flexibility in terms of when the hedging strategy is implemented, allowing investors to react quickly to changes in market conditions.</p>



<p>Amplify Trading Gains with Leverage &#8211; An additional benefit offered by COIN-margined futures is that they allow traders to amplify their trading gains through the use of leverage. Leverage refers to taking on more risk than would normally be possible with a stock position but allows traders to potentially make larger profits due to higher levels of return achievable on smaller amounts invested. This is particularly appealing for those who are looking for higher returns but are unable or unwilling to commit large sums of capital upfront. It also allows for diversification which reduces overall exposure as well as providing added protection against sudden downturns in price levels. Leveraged trading using COIN-margined futures gives traders the opportunity not only increase their potential profits but also minimize their risk profile by limiting their downside losses.</p>



<h3 class="wp-block-heading" id="h_01J67X1Q29ZPP3JYHC2C3Q6JVD">Cons of COIN-margined futures</h3>



<p>On the downside, since these products are margined using digital assets rather than fiat currency, this means that any profits or losses will be denominated in digital currency &#8211; which may have its own inherent volatility risks associated with it (depending on your local jurisdiction). In addition, since many exchanges offering these products require KYC/AML verification before being able to start trading them &#8211; this could potentially add another layer of complexity and cost if you do not already have an account setup with a compatible exchange prior to opening a position in one of these futures products.</p>



<h2 class="wp-block-heading" id="h2-4">4. What are the differences between USDT-margined and Coin-margined Futures?</h2>



<p>USDT-margined futures and Coin-margined Futures both offer exciting opportunities for traders, but there are some key differences between the two that should be taken into account before trading. Firstly, USDT-margined futures are denominated in the stablecoin Tether (USDT) which means potential losses or gains from positions taken will be settled in USDT. On the other hand, Coin-margined futures use cryptocurrency assets as the underlying collateral which provides an additional layer of risk because it opens traders up to volatility from both currencies involved in the trade. Further, Coin-margined futures allow more options when setting up a margin requirement as you can use either USDT or your preferred cryptocurrency as collateral.</p>



<p>When it is judged that the general trend of the market operation is a bull market, for trend trading users, choosing to do long coin-margined contracts can expand profits; when it is judged that the general trend of market operation is a bear market, for trend trading users, choosing to short USDT-margin contracts can expand profits. When the short-term market is rising, choose to long the coin-margined contract; when the short-term market is falling, choose to short the USDT-margin contract. For coin-margined contracts, the typical user group is hedging users, such as miners, whose characteristics are that they need to hold a certain coin for a long time; for USDT margin contracts, the typical user group is fiat currency-based users, which meet the low transaction costs and simple calculation requirements. All told, each type of margined future has its own considerations before entering a trade and it’s important to be aware of the differences between each option to help make informed decisions when trading.</p>



<h2 class="wp-block-heading" id="h2-5">5. What are COIN-margined perpetual contracts?</h2>



<p><a href="https://www.xt.com/en/futures/trade/btc_usd">Perpetual Coin-Margined Futures</a>&nbsp;is a kind of derivative with no expiration or settlement date. COIN margined perpetual contracts are a type of cryptocurrency derivative that merges the advantages of futures and options. They allow traders to invest with low capital requirements without expiring and also be charged on a round-turn basis (including entry and closing fees). COIN margined perpetual contracts provide simple pricing algorithms based on a composition of prices from selected exchanges allowing competitive commissions when compared to traditional margin products alongside increased leverage. This allows traders to gain significant market exposure while having total control over their portfolios. COIN margined perpetual contracts could be an attractive option for anyone looking to add cryptocurrencies like Bitcoin and Ethereum to their portfolio.</p>



<h2 class="wp-block-heading" id="h2-6">6. How to trade COIN-margined perpetual futures on XT Futures?</h2>



<p>Step 1:</p>



<p><a href="https://www.xt.com/en/accounts/login">Login in</a>&nbsp;your XT account and click “Perp” under “COIN-M Futures” from “Derivatives” section on the navigation to enter the XT futures&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">COIN-margined perpetual contracts</a>&nbsp;trading page.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893110839577" alt="截屏2024-08-27 00.46.06.png"/></figure>



<p>Step 2:</p>



<p>On the futures trading page, you can unlock a world of market intelligence and be in control. Use the real-time price chart to track your selected pair. See orders or review active positions at the bottom display &#8211; then consult any other brokerages making buys/sells in their order book, and view recently completed trades for further knowledge on what’s happening with market values. Finally, you can place trading orders on the right of the screen.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893087538713" alt="截屏2024-08-27 00.50.05.png"/></figure>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893087539865" alt="截屏2024-08-27 00.51.03.png"/></figure>



<p>Step 3:</p>



<p>The coin-margined perpetual contract is a perpetual contract denominated in a certain kind of digital asset (such as BTC or ETH).&nbsp;<a href="https://www.xt.com/en">XT</a>&nbsp;currently offers&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">BTC/USD perpetual</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usd">ETH/USD perpetual</a>, and many other perpetual contracts trading pairs. Here, we will use BTC USD perpetual trading as an example.</p>



<p>If you don’t have enough funds in your Futures account, you can easily transfer assets from Spot to Futures account with just one click. If you don’t have funds on the Spot side either, you can&nbsp;<a href="https://www.xt.com/credit/debitCard">buy crypto</a>&nbsp;directly with fiat currency.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893087548441" alt="截屏2024-08-27 01.00.46.png"/></figure>



<p>Step 4:</p>



<p>When your futures account has the required funds, you may place your limit order by setting price and the number of contracts you would like to purchase. You may then click “Open Long” or “Open Short” to complete your order.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893087542553" alt="截屏2024-08-27 00.51.03_副本.png"/></figure>



<p>Step 5:</p>



<p>XT allows up to 125X leverage on its trading pairs, and your maximum allowable leverage depends on the initial margin and maintenance margins. Traders may adjust their long or short positions using cross-margin mode or isolated-margin mode. For example, if a trader wants to reduce risk by decreasing leveraged hedging from 100X to 20X in an isolated position, they can click “Isolated 100X” then adjusting the figure down below that before hitting “Confirm”. Then the leverage of the position has now been reduced to 20X.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893110848409" alt="截屏2024-08-27 01.03.41.png"/></figure>



<p>Step 6:</p>



<p><a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;supports two different margin modes to accommodate differing trading strategies. They are Cross Margin mode and Isolated Margin mode. By default, all traders start in cross margin mode.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893087554969" alt="截屏2024-08-27 01.05.27.png"/></figure>



<p>Step 7:</p>



<p>Trading smartly with XT Futures means understanding when to go long or short on your positions.And set your [Stop profit] and [Stop loss].</p>



<p>Going “long” is the act of buying a contract in anticipation that its price will rise, allowing you to sell it for profit later down the line. Alternatively, going “short” requires predicting future market dips; by selling at current prices and re-buying back later at lower ones &#8211; earning investors even greater profits! With an array of order types available from XT Futures designed specifically around efficient trading strategies &#8211; potential earnings are endless!</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36893087546905" alt="截屏2024-08-27 01.10.32.png"/></figure>



<h3 class="wp-block-heading" id="h_01J67X1Q29QSTKEZNG1S4DSF2S"><strong>About XT.COM</strong></h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What is COIN-margined Futures and How to Trade COIN-margined Perpetual Futures on XT Futures


<p><a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">Cryptocurrency futures grid trading</a>&nbsp;is a strategy that uses an algorithm to place multiple buy and sell orders at various intervals. The goal of grid trading is to maximize profits while minimizing risk. It’s one of the most popular strategies used by traders due to its consistency and ability to eliminate emotion from the equation. In this article, we will discuss what crypto futures grid trading is, how it works, who can make use of it, and its rewards.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597630744601" alt="futures-grid-trading-cover-en.png"/></figure>



<h3 class="wp-block-heading"><strong>Contents of the article:</strong></h3>



<p><a href="#h2-1">What is crypto futures grid trading?</a></p>



<p><a href="#h2-2">How does futures grid trading work?</a></p>



<p><a href="#h2-3">Who can make use of futures grid trading?</a></p>



<p><a href="#h2-4">What are the benefits of using futures grid trading?</a></p>



<p><a href="#h2-5">What are the risks associated with grid trading?</a></p>



<p><a href="#h2-6">How to use grid trading strategy on XT Futures?</a></p>



<h2 class="wp-block-heading" id="h2-1">What is crypto futures grid trading?</h2>



<p><a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">Futures grid trading bots</a>&nbsp;enable sophisticated investors to take their futures trading capabilities to the next level. The powerful, automated system executes pre-defined trades based on established parameters and a set of orders placed both above and below an asset’s reference market price &#8211; allowing for precise control over risk management without human intervention.</p>



<p>Investors often feel powerful and conflicting emotions when dealing with money, from the exhilaration of a big win to despair over losses. Such strong feelings can interfere with an investor’s strategy but are hard to suppress &#8211; until now! Enter trading bots: computer programs that transact on behalf of investors and offer them leverage in futures markets without feeling any fear or greed themselves. By taking these decisions out of human hands, they help give traders stability through volatile market conditions as emotions stay firmly at bay.</p>



<h2 class="wp-block-heading" id="h2-2">How does futures grid trading work?</h2>



<p><a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">Futures grid trading</a>&nbsp;is a type of trading that uses bots for automated trades. These bots are programmed to divide large futures contracts into smaller “grids” and execute buy/sell orders at several prices across the grid to get a better price than the traditional market order approach of buying or selling at one set price. The buy/sell orders are placed slightly above and below the current futures contract price, so whatever market direction, there’s usually an opportunity for a profitable outcome. The futures grid trading bot monitors the prices throughout the day and makes new orders as appropriate depending on where prices move. This allows traders to take advantage of small inefficiencies in the futures markets without having to be constantly monitoring them themselves.</p>



<p>For example, using grid trading, a trader could place buy orders for BTC at every 1,000 USDT below the current market price, and sell orders at every 1,000 USDT above the market price.</p>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>sell</td><td>$22,000</td></tr><tr><td>sell</td><td>$21,000</td></tr><tr><td>current market price</td><td>$20,000</td></tr><tr><td>buy</td><td>$19,000</td></tr><tr><td>buy</td><td>$18,000</td></tr></tbody></table></figure>



<h2 class="wp-block-heading" id="h2-3">Who can make use of futures grid trading?</h2>



<p>Futures grid trading can be used by anyone who has access to reliable trading platforms such as&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>. It is suitable for all types of traders from beginners to experienced professionals as it does not require complex technical analysis skills or deep understanding of fundamental analysis techniques like other forms of trading do.</p>



<ol class="wp-block-list">
<li>Short sellers: futures traders are often faced with a daunting decision: go long or short? While the prospect of going short can be extremely enticing, paired with potentially higher profits &#8211; it also holds much greater risk. Enter Futures Grid Trading; by helping to manage and control risks associated with trading one’s asset portfolio, grid trading works best when markets become turbulent and prone to significant volatility.</li>



<li>Margin trading is a great way to potentially amplify returns &#8211; but it also comes with the inherent risk of potential greater losses. For traders looking for profitable, yet secure opportunities however, Futures Grid has them covered; adjustable limits allow investors to customize their experience according to their own specific criteria and reduce exposure at whatever level they see fit.</li>



<li>Tired of non-stop monitoring? Breathe a sigh of relief! Futures Grid Trading on&nbsp;<a href="https://www.xt.com/en">XT.COM</a>&nbsp;liberates traders from having to stay glued to the screen around the clock &#8211; unlocking freedom while still capitalizing on opportunities in an ever-changing crypto market that never sleeps.</li>



<li>Beginners: as a newcomer,&nbsp;<a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">Futures Grid Trading</a>&nbsp;is your golden ticket – it’s designed with safety in mind so you can gradually get accustomed to market fluctuations. XT Future’s Auto-Mode will set up all the basics for you based on past trades &#8211; no headache or guesswork required!</li>
</ol>



<h2 class="wp-block-heading" id="h2-4">What are the benefits of using futures grid trading?</h2>



<p>Futures grid trading offers numerous advantages:</p>



<ul class="wp-block-list">
<li>Consistency &#8211; Since it automates the entire process traders do not need to worry about making emotional decisions which could lead them astray from a successful trade setup;</li>



<li>Low capital requirements &#8211; Since it does not require large amounts of leverage or margin requirements for each trade, it can be used with very little capital;</li>



<li>Low risk &#8211; As it only involves placing small trades with limited exposure per trade; risk management is built into this type of strategy via stop-losses/take-profits being preset ahead of time, traders do not have worry about taking unnecessary risks which could lead them down a path towards financial ruin if left unchecked;</li>



<li>Automation &#8211; Once parameters have been set up correctly, all trades will execute automatically;</li>



<li>Versatility &#8211; It can be used in any cryptocurrencies pairs etc., allowing traders to diversify their portfolios easily;</li>



<li>Flexibility &#8211; Traders can adjust their strategies based on market conditions without having to manually execute every single trade; Additionally, since multiple orders are placed simultaneously with predetermined amounts, it allows traders the flexibility to take profits quickly should one side move favorably without having to wait until all positions are closed out in order to realize gains (or losses);</li>



<li>Diversified returns &#8211; As profits are taken from both rising and falling markets simultaneously;</li>



<li>Increased efficiency &#8211; Trades are executed quickly allowing traders to take advantage of short-term opportunities quickly before they pass by.</li>
</ul>



<h2 class="wp-block-heading" id="h2-5">What are the risks associated with grid trading?</h2>



<p>Although futures grid trading can be a highly profitable form of futures trading, it also carries with it significant risks which must be understood before engaging in the practice. Grid trading can produce large losses if the margin requirements cannot all be met when the futures position moves against you, or if you are unable to exit your positions at a desired price point. Additionally, futures markets are highly volatile and require traders to constantly adjust their grids as prices move. Finally, futures grid trading is not suitable for traders who lack sufficient capital or experience due to the involved risks associated with fast-changing futures prices.</p>



<h2 class="wp-block-heading" id="h2-6">How to use grid trading strategy on XT Futures?</h2>



<p>Here’s how you can set up your futures grid trading strategy:</p>



<p>1. On the&nbsp;<a href="https://www.xt.com/en/futures">XT.COM Futures</a>&nbsp;page, click [Futures Grid] on the navigation bar.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597622129817" alt="1-guide-en.png"/></figure>



<p>2. The next step is to select the contract on which you would like the futures trading bot to be deployed. We will use a&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTCUSDT perpetual contract</a>&nbsp;as an example.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597627028121" alt="2-guide-en.png"/></figure>



<p>3. From the right-hand sidebar, you can choose between “Auto” mode (to automatically generate recommended parameters according to technical analysis of the symbol price) and “Manual” mode (to manually customize your grid parameters).</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597623313177" alt="3-guide-en.png"/></figure>



<p>The Auto option is great for traders of all levels who want to maximize their opportunities with a bot. Whether you’re just getting started or have been trading for years, this feature can help increase your success rate. If you choose “Auto”, you’ll need to decide the following options:</p>



<ul class="wp-block-list">
<li>Order Direction: Neutral, Long, or Short</li>
</ul>



<p>Neutral：Neutral Mode unlocks the potential of range-bound markets. This feature enables traders to take advantage of short and long futures contracts without any existing positions &#8211; simply set your base price, then sit back as buy or sell orders are placed when market prices breach it. With a clever combination of long/short trades based on whether they’re above or below the specified base value, you can confidently lock in maximum profits from sideways movements.</p>



<p>Long: In a volatile market, the long-mode strategy can be an effective tool to capitalize on rising prices. By entering into long positions when they’re formed and capturing profits as soon as possible, traders can take advantage of positive fluctuations in asset price. For instance, a trader who is bullish on Bitcoin might use a long grid strategy on&nbsp;<a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">BTCUSDT</a>.</p>



<p>Short：For traders looking to take advantage of a bearish market, short mode can be the ideal solution. With this strategy, positions are automatically taken at current prices and profits realized when things start heading south. It’s perfect for those who want to capitalize on falling markets.</p>



<ul class="wp-block-list">
<li>Initial margin: the minimum equity required to open any new position</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597627906329" alt="4-guide-en.png"/></figure>



<p>4. Alternatively, you may choose to specify all the key parameters manually. For Manual option, you’ll need to choose the trading parameters as follows</p>



<ul class="wp-block-list">
<li>Order direction. On the grid trading panel, select the grid direction from three options &#8211; Neutral, Long, or Short.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597628455833" alt="5-guide-en.png"/></figure>



<ul class="wp-block-list">
<li>Grid type. There are two options for constructing the grid &#8211; arithmetic mode and the geometric mode.</li>
</ul>



<p>Arithmetic mode: Each grid has the same price difference. For example, if the interval is 5,000 USDT. The price of the next order will be 5,000 USDT higher than the previous price.</p>



<p>Geometric mode: Each grid has an equal price difference ratio. For example, if the interval is 17.61%. The price of the next order will be 17.61% higher than the previous price.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597624383769" alt="6-guide-en.png"/></figure>



<ul class="wp-block-list">
<li>Price range. Get ready to maximize your earning potential with a 24-hour BTC price prediction strategy. By setting an anticipated range of $20,000 -$30,000 for the next day, you can let the grid trading bot do its magic and automatically place buy orders as prices dip towards $25K and sell off when they begin rising again, in order to make a profit from the price fluctuations.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597629103513" alt="7-guide-en.png"/></figure>



<ul class="wp-block-list">
<li>Grid count. Futures grid trading allows you to decide exactly how many orders are placed within your desired price range, empowering you with control over how much profit is made from each trade &#8211; whether that’s many smaller profits or fewer larger ones. A larger grid means more trades but smaller profits per trade; alternatively, fewer grids mean bigger returns on each transaction.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597625201433" alt="8-guide-en.png"/></figure>



<ul class="wp-block-list">
<li>Initial margin. When using futures grid trading strategy on the market, it’s essential to set an initial margin that fits your grids, leverage and price range. For optimal success results, keep in mind that having close-knit grid margins can significantly raise the required initial margin.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597625598105" alt="9-guide-en.png"/></figure>



<ul class="wp-block-list">
<li>Advanced features. The grid trading bot also comes with enhanced functions that enable you to better manage your positions and risk. Grid trading bot’s Trigger Price function helps set the stage by allowing you to establish predetermined market conditions, so when they are met, the system will jump into action. Get ready for an automated approach that customizes itself according to your personal criteria.</li>



<li>Additionally, you can set a stop-loss for your grid positions. Maximize your gains and safeguard against unexpected losses with stop-loss orders on grid positions! This feature will automatically close out an entire position when the market turns sour, helping to protect you from facing sizable loses.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15597630221849" alt="10-guide-en.png"/></figure>



<h3 class="wp-block-heading">&nbsp;</h3>



<h3 class="wp-block-heading" id="h_01JD8WXVPT6Q0AWA40P6VE1TR0">About XT.COM</h3>



<p>Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What is Futures Grid Trading and How to Do Futures Grid Trading on XT Futures


<figure class="wp-block-image size-large"><img data-recalc-dims="1" loading="lazy" decoding="async" width="1024" height="597" data-attachment-id="2142" data-permalink="https://xtexchangeblog.wpcomstaging.com/en/the-reverse-position-feature-in-futures/xt-futures-cover-4/" data-orig-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1200%2C700&amp;ssl=1" data-orig-size="1200,700" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="xt-futures-cover" data-image-description="" data-image-caption="" data-medium-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=300%2C175&amp;ssl=1" data-large-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1024%2C597&amp;ssl=1" src="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&#038;ssl=1" alt="xt-futures-cover" class="wp-image-2142" srcset="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&amp;ssl=1 1024w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=300%2C175&amp;ssl=1 300w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=768%2C448&amp;ssl=1 768w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?w=1200&amp;ssl=1 1200w" sizes="auto, (max-width: 1000px) 100vw, 1000px" /></figure>



<h3 class="wp-block-heading"><strong>Contents of the article:</strong></h3>



<p><a href="#h2-1">What are futures funding rate?</a></p>



<p><a href="#h2-2">Why are futures funding rates important?</a></p>



<p><a href="#h2-3">What is futures insurance fund (risk protection fund)?</a></p>



<p><a href="#h2-4">How does futures insurance fund (risk protection fund）work？</a></p>



<p><a href="#h2-5">What are the differences between index price and mark price?</a></p>



<h2 class="wp-block-heading" id="h2-1"><strong>What are futures funding rate?</strong></h2>



<p><a href="https://www.xt.com/en/futures/information/fund-rate">Crypto funding rates</a>&nbsp;are a dynamic system used by exchanges which determine the funding rate at specific intervals. It works by tracking supply and demand on the exchange and then setting a funding rate to maintain equilibrium. This&nbsp;<a href="https://www.xt.com/en/futures/information/fund-rate">funding rate</a>&nbsp;is then used to automatically balance trader positions by crediting or debiting crypto accounts, depending on the direction of their trades. By doing this, the funding rate helps to ensure fair trading conditions while also preventing potential market manipulations or price distortions due to large trader positions.</p>



<p>Calculating funding rates in&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">crypto perpetual contracts</a>&nbsp;can be a complex process. This is because funding rates are constantly changing and there are a variety of factors that contribute to these changes. Some of the factors that can affect funding rates include the price of the underlying asset, the interest rate of the funding currency, and the liquidity of the market. funding rates can be either positive or negative, and this will impact whether traders are able to profit from their positions.</p>



<p>On our&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;platform, funding rates (highlighted in red) and a countdown to the next funding (highlighted in yellow) are displayed as below. Volatility can cause the prices of a&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">perpetual contract</a>&nbsp;and its mark to fluctuate considerably. In such cases, traders must pay attention to both spread width and premium level; wide spreads typically mean high premiums while narrow ones come with low premiums. A positive funding rate signals that long positions are at an advantage as their price is higher than the mark’s, resulting in paying for the shorts. The opposite holds true when rates are negative &#8211; it’s then up to short holders’ wallets rather than those of longs’.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36942056194329" alt=""/></figure>



<h2 class="wp-block-heading" id="h2-2"><strong>Why are futures funding rates important?</strong></h2>



<p>Crypto funding rate plays an important role in the health and stability of the cryptocurrency market. This funding rate is the cost that traders pay one another for using margin trading to trade cryptos with leverage. Essentially, Funding Rates are designed to encourage traders to take positions that keep perpetual contract prices line in with spot markets. Not only does this help keep the markets liquid, it creates more price discovery which can lead to efficient pricing overall &#8211; this helps both buyers and sellers transact at a fair price. Moreover, funding rates prevent large swings or over-leveraging from destabilizing the crypto markets.</p>



<p>Funding rates can mean a world of difference for any trader; high leverage could quickly deplete one’s profits or even lead to liquidation. However, by developing strategies around funding opportunities and taking advantage of range-bound markets, savvy traders may never fall into the ‘high risk’ category again! By monitoring rate fluctuations carefully and acting accordingly with their positions in perpetual contracts versus spot prices, success is almost guaranteed &#8211; no matter how low volatility gets.</p>



<h2 class="wp-block-heading" id="h2-3"><strong>What is futures insurance fund (risk protection fund)?</strong></h2>



<p>Insurance funds are a vital component of&nbsp;<a href="https://www.xt.com/en/futures">crypto derivatives trading</a>, safeguarding traders from disastrous losses. Working like an impenetrable safety net, insurance funds serve to protect bankrupt traders while simultaneously securing the profits of those in-the-black &#8211; offering peace of mind to all involved parties. Not only do they guard against large losses from leveraged positions, but also guarantee full payout to winning traders, acting as a defensive barrier against uncontrollable market forces such as leveraged trade contract loss exceeding initial margins.</p>



<p>The&nbsp;<a href="https://www.xt.com/en/futures/information/risk-fund">XT Risk Protection Fund</a>&nbsp;is an innovative solution to protect traders from costly forced liquidations due to bankrupt counterparties. By using the margin of non-bankrupt users, it offers a buffer against losses when high leverage trades are affected by market volatility or other factors. This fund helps safeguard profitable positions and ultimately gives traders peace of mind in their investments.</p>



<p>You can access the insurance fund (risk protection fund) balance of&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usdt">ETH/USDT</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">BTC/USD</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usd">ETH/USD</a>, and all other futures contracts by clicking [Information] &#8211; [Provision of risks] on the&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;trading interface. Alternatively, you can directly visit [<a href="https://www.xt.com/en/futures/information/risk-fund">Provision of risks</a>].</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36942056195097" alt=""/></figure>



<h2 class="wp-block-heading" id="h2-4"><strong>How does futures insurance fund (risk protection fund) work?</strong></h2>



<p>Let’s begin with an examination of how the&nbsp;<a href="https://www.xt.com/en/futures/information/risk-fund">XT Futures provision of risks</a>&nbsp;works:</p>



<p>In uncertain times, the provision of risks (insurance fund) proves its worth by preventing auto-deleverage liquidations. Trader A and Trader B both took a leap of faith by entering into the same&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT perpetual futures</a>&nbsp;long position despite varying market conditions.</p>



<p><em>The following events unfold on Trader A’s account:</em></p>



<p><em>1. Trader A goes long BTC/USDT at $8,000, with a liquidation price of $7,700 and a bankruptcy price of $7,600.</em></p>



<p><em>2. As BTC prices plunged beyond $7,700, Trader A enters liquidation and the liquidation engine places an immediate order to sell above $7,600 (the bankruptcy price).</em></p>



<p><em>3. The liquidation order is filled at $7,650, a liquidation fee is charged to Trader A.</em></p>



<p><em>4. The liquidation fee is transferred to the provision of risks.</em></p>



<p><em>Meanwhile, the following events play out in Trader Bs account:</em></p>



<p><em>1. Trader B goes long at $8,000 with a liquidation price of $7,700 and a bankruptcy price of $7,600.</em></p>



<p><em>2. Due to a sudden jump in volatility, the market price is now at $7,550, below the bankruptcy price.</em></p>



<p><em>3.&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;takes over the remaining positions from the bankrupt trader whose account is in negative equity.</em></p>



<p><em>4. Through its provision of risks, XT Futures offloads them onto the market progressively.</em></p>



<p><em>5. The liquidation engine places an immediate order to sell and fills the order at $7,500.</em></p>



<p><em>6. As Trader B is already in negative equity, XT Futures’ provision of risks covers the deficit. As a result, ADL has been avoided.</em></p>



<h2 class="wp-block-heading" id="h2-5"><strong>What are the differences between index price and mark price?</strong></h2>



<p>Index Price is the average market price of cryptocurrencies on major spot crypto exchanges in&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">perpetual futures</a>. It takes into account an anticipatory mechanism to make sure prices swing within a reasonable range, and it’s also the main factor behind determining mark price.</p>



<p>Mark Price refers to an estimated true value of a contract. It is the price used for mark-to-market PnL calculation and platform liquidation; Mark price is also designed to be fair and manipulation resistant.&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;uses Mark Price as a trigger for liquidation.</p>



<p>You can access the index price of&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usdt">ETH/USDT</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">BTC/USD</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usd">ETH/USD</a>, and all other futures contracts by clicking [Information] &#8211; [Index Price] on the&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;trading interface. Alternatively, you can directly visit [<a href="https://www.xt.com/en/futures/information/index">Index Price</a>].</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/36942071981977" alt=""/></figure>



<p>You can access both the&nbsp;<strong>[index price]</strong>&nbsp;and&nbsp;<strong>[mark price]</strong>&nbsp;of&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usdt">ETH/USDT</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">BTC/USD</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usd">ETH/USD</a>, and all other futures contracts from futures trading interface.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/15800099720601" alt="index-mark-price-en.png"/></figure>



<h3 class="wp-block-heading" id="h_01J6AECBDFVHNEY4M3Q6QJ08ZW">About XT.COM</h3>



<p>Founded in 2018, XT.COM now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM crypto exchange supports a rich variety of trading, such as spot trading, margin trading, and futures trading together with an aggregated NFT marketplace. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What Are Futures Funding Rate, Insurance Fund, and Index Price?


<p>Quarterly futures contracts are an important tool for traders looking to capitalize on short-term price movements in a given market. In this article, we’ll provide an overview of quarterly futures and explore the differences between these contracts and perpetual futures. With this knowledge, traders can decide which type of contract is better suited to their trading style and goals.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031595143321" alt="quarterly-futures-contract-cover-en.png"/></figure>



<h3 class="wp-block-heading">Contents of the article:</h3>



<p><a href="#h2-1">What are quarterly futures contracts?</a></p>



<p><a href="#h2-2">How do quarterly futures contracts work?</a></p>



<p><a href="#h2-3">What are the benefits of quarterly contracts?</a></p>



<p><a href="#h2-4">What are the differences between quarterly futures and perpetual futures?</a></p>



<p><a href="#h2-5">How to trade quarterly futures contracts on XT.COM Futures</a></p>



<h2 class="wp-block-heading" id="h2-1">What are quarterly futures contracts?</h2>



<p><a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">Quarterly futures contracts</a>&nbsp;are derivatives that provide holders the ability to enter into a contract with the seller to buy or sell an asset at a particular future date quarterly. Unlike other longer-term futures contracts, quarterly futures contracts are typically used to lock in pricing and avoid price fluctuations in more volatile markets. They function similarly to&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">perpetual futures contracts</a>, but represent smaller and more frequent transactions, allowing traders better market access while quickly capitalizing on opportunities they otherwise may not have had without quarterly contracts.</p>



<p>Quarterly futures contracts provide investors with access to markets and investments they would not normally have access to, as well as providing protection against volatile market conditions. While quarterly futures contracts can be highly lucrative, as with any investment there is always a risk involved and therefore it is important for investors to educate themselves about the market and the specific quarterly futures contract before making any decisions.</p>



<h2 class="wp-block-heading" id="h2-2">How do quarterly futures contracts work?</h2>



<p>Quarterly futures are a popular form of investment, with an expiration date that must be observed. These contracts expire on the last Friday of every quarter, ensuring an easy way for investors to keep track and plan their strategies accordingly; just like any other standard future contract. A Bi-quarterly futures is generated on the third Friday from the last of each quarter month (March, June, September, December) and expires on the last Friday of a half-year. The most recent&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt_quarter">BTCUSDT Quarterly 0331</a>&nbsp;&#8211; will settle on March 31st 2023 in cash (USD) allowing traders who have acquired positions before expiry ample time &#8211; as well as security &#8211; when preparing for settlement. The most recent&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd_bi-quarter">BTCUSD quarterly 0630</a>&nbsp;&#8211; will settle on June 30th 2023. Alternatively, the contacts can also have physical settlement, which means traders can literally buy one bitcoin for the predetermined price.</p>



<p>If the trade isn’t going as planned, traders have the choice of closing their positions (long or short) before expiration. The resulting profits and losses (PnL) would be calculated by comparing the opening price to that at closure. For example, invest in a&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt_quarter">BTCUSDT quarterly 0331</a>&nbsp;and you’ll be set for the quarter. By buying one BTCUSDT quarterly 0331 contract at $30,000 now, you’ll lock-in that price come the expiry date on 31 March &#8211; regardless of how much Bitcoin decides to fluctuate before then. The contract will be settled on March 31 and the traders will buy one bitcoin for $30,000.</p>



<h2 class="wp-block-heading" id="h2-3">What are the benefits of quarterly contracts?</h2>



<p><a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">Quarterly futures contracts</a>&nbsp;can be beneficial for traders because they provide flexibility and opportunities to trade at regular intervals. Unlike other futures contracts, quarterly futures have a particular expiration date that is quarterly rather than the typical yearly expiration. This means that traders are able to plan their trading strategies around a quarterly structure instead of waiting a long-term before they can make changes. Quarterly futures offer more frequent price discovery events which enables traders to react to market forces in a timely fashion and adjust their trading positions accordingly.</p>



<p>Quarterly contracts also offer liquidity and lower margin requirements, as well as harmonized global standards for pricing and risk management. This can make quarterly contracts an attractive option for capitalizing on opportunities in the global market. In addition, quarterly futures provide more liquidity opportunities as trades can be made on each quarter’s delivery so there is often a greater number of participants in the market compared with perpetual contracts. Overall,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">delivery futures</a>&nbsp;are appealing for those looking for short-term trading opportunities as well as those who prefer frequent trading and renewed exposures over longer durations.</p>



<h2 class="wp-block-heading" id="h2-4"><a></a>What are the differences between quarterly futures and perpetual futures?</h2>



<h3 class="wp-block-heading" id="h_01JD8XAXWPDFE1GVB7GAPP5S94">Expiration Date</h3>



<p>The most obvious difference between these two types of futures is their expiration date.&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt_quarter">Quarterly delivery futures</a>&nbsp;are designed to expire at a certain point in time &#8211; usually on the last Friday of the quarter. This means that if you hold a position in a quarterly future until its expiration date, your position will be automatically closed out at the prevailing market price. On the other hand,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">perpetual futures</a>&nbsp;never expire; instead they use a rollover system to extend positions that have been open for longer than 8 hours (or 16 hours in some cases).&nbsp;</p>



<h3 class="wp-block-heading" id="h_01JD8XAXWPY4X1JRER35ZYJK1K">Rollover Process</h3>



<p><a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">Quarterly futures trading</a>&nbsp;does not require any type of rollover process because they expire on their own accord after 3 months. However, with&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">perpetual futures trading</a>&nbsp;there is an additional process called “rollovers” which keep positions open beyond 8 or 16 hours. These rollovers involve transferring part (or all) of your position from one expiry date to another one month later. This allows traders to keep their positions open for extended periods of time without having to close them out prior to the expiry date.</p>



<h3 class="wp-block-heading" id="h_01JD8XAXWQ3CFKCMA77HNNVAVT">Funding Fee</h3>



<p>Another key difference between these two types of contracts lies in their funding fee structure.&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">Quarterly futures contracts</a>&nbsp;typically do not include any kind of funding fee as they are designed to be held until their expiration date and then liquidated at that point in time. However,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">perpetual futures contracts</a>&nbsp;do include a funding fee which is charged every 8-hours or 16-hours depending on the contract specification; this fee helps incentivize market makers who provide liquidity by offsetting some of their risk exposure.&nbsp;&nbsp;</p>



<h3 class="wp-block-heading" id="h_01JD8XAXWQJ9SN6GHPHKS87AA8">BTC vs USDT Margined</h3>



<p>Both quarters and perpetuals can be margined either in Bitcoin (BTC) or Tether (USDT). While both BTC and USDT margins offer similar levels of liquidity and exposure, there are some important differences between them;&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">BTC margin</a>&nbsp;offers more potential profit potential due to its higher volatility while&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">USDT margin</a>&nbsp;offers more stability due to its lower volatility but also lower potential profits compared to BTC margin trades.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>



<h3 class="wp-block-heading" id="h_01JD8XAXWQ3XYCJ4S02NWY28TF">Trading Strategy</h3>



<p>Finally, it’s important to consider how these different types of contracts fit into your overall trading strategy as well as what type of risk profile you prefer when selecting one over the other. If you prefer shorter-term trades with less volatility and risk then quarterly contracts may be better suited for you; however if you prefer more flexibility in terms of duration and exposure then perpetuals may be the better choice for you given their higher leverage options and ability to rollover positions indefinitely.</p>



<h2 class="wp-block-heading" id="h2-5">How to trade quarterly futures contracts on XT.COM Futures</h2>



<p>Step 1:&nbsp;<a href="https://www.xt.com/en/accounts/login">Login in</a>&nbsp;your XT.COM account and click “Delivery” under “COIN-M Futures” from “Derivatives” section on the navigation to enter the XT futures&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">COIN-margined delivery contracts</a>&nbsp;trading page.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031600087705" alt="1-step-en.png"/></figure>



<p>Step 2: On the futures trading page, you can place trading orders on the right of the screen.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031648670873" alt="2-step-en.png"/></figure>



<p>Step 3: The coin-margined delivery contract is a quarterly or bi-quarterly contract denominated in a certain kind of digital asset (such as BTC or ETH).&nbsp;<a href="https://www.xt.com/en">XT.COM</a>&nbsp;currently offers&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">BTC/USD quarterly</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/eth_usd_quarter">ETH/USD quarterly</a>, and many other&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd_quarter">delivery contracts</a>&nbsp;trading pairs. Here, we will use BTC USD quarterly trading as an example.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16033362070937" alt="3-step-en.png"/></figure>



<p>Step 4: If you don’t have enough funds in your Futures account, you can easily transfer assets from Spot to Futures account with just one click. If you don’t have funds on the Spot side either, you can&nbsp;<a href="https://www.xt.com/credit/debitCard">buy crypto</a>&nbsp;directly with fiat currency.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16033362588825" alt="4-step-en.png"/></figure>



<p>Step 5: When your futures account has the required funds, you may place your limit order by setting price and the number of contracts you would like to purchase. You may then click “Open Long” or “Open Short” to complete your order. A long position means you expect the market to rise, while a short position means you expect it to fall.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16033427431833" alt="5-step-en.png"/></figure>



<p>Step 6: You can modify leverage of long or short positions using cross-margin mode or isolated-margin mode.&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>&nbsp;supports two different margin modes to accommodate differing trading strategies. They are Cross Margin mode and Isolated Margin mode. By default, all traders start in cross margin mode.</p>



<ul class="wp-block-list">
<li>Isolated Margin: Isolated Margin allows traders to manage their risk in a more efficient way by allowing only part of their position to be automatically liquidated if there is a significant price movement. Isolated Margin also provides traders plenty of liquidity while they maintain open positions, allowing them to make more strategic decisions when the markets move quickly.</li>



<li>Cross Margin: Cross Margin is an optional margin mode that reduces the margin requirement for traders, allowing them to take on larger positions without having to deposit extra funds into their account. Cross Margin works by allowing traders to spread their total account collateral over all of the positions held in the same contract. Therefore, Cross Margin ensures that traders have adequate margin levels across all positions in a particular contract and can allow them to increase their position size if desired.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031601762969" alt="6-step-en.png"/></figure>



<p>Step 7:&nbsp;You can choose your order type using limit order, market order or trigger order.</p>



<ul class="wp-block-list">
<li>A limit order lets you set a minimum price for the order to execute</li>



<li>A market order will execute immediately at the current best available market price</li>



<li>A trigger order lets you specify the stop price an order should execute. If the market order price falls to your stop price, your order will trigger a sell</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031653128089" alt="9-step-en.png"/></figure>



<p>Each order you place specifies a Time in Force (TIF) along with the Order Type. TIF indicates how long the order will remain active before it is executed or before it expires. Available TIF options may change, depending on the order type, exchange and contract.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031703770777" alt="10-step-en.png"/></figure>



<p>Step 8:&nbsp;During the futures trading, if you need to perform some basic arithmetic, you can use the provided calculator function on the futures trading page.</p>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031650306585" alt="7-step-en.png"/></figure>



<figure class="wp-block-image"><img decoding="async" src="https://xtsupport.zendesk.com/hc/article_attachments/16031637968409" alt="8-step-en.png"/></figure>



<h2 class="wp-block-heading" id="h2-6">Final Thoughts</h2>



<p>In conclusion, understanding the differences between quarterly futures and perpetual futures can help traders determine which type of contract best suits their individual needs when it comes to trading derivatives markets like those offered through&nbsp;<a href="https://www.xt.com/en/futures">XT futures exchange</a>. While both types offer advantages depending upon individual preferences such as shorter expiration times for those seeking shorter commitments or margin trading capabilities for those looking leverage trades with increased potential profits but also higher risk profiles; understanding how each works before entering any position will ensure that you make informed decisions when entering into any kind of derivative contract regardless if its based off quarters or perpetuity!</p>



<h3 class="wp-block-heading" id="h_01JD8XAXWQSEHWPRCG06P2V5YT">About XT.COM</h3>



<p>Founded in 2018, XT.COM now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM crypto exchange supports a rich variety of trading, such as spot trading, margin trading, and futures trading together with an aggregated NFT marketplace. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.</p>


What Are Quarterly Futures and What Are the Differences Between Quarterly Futures and Perpetual Futures?

The system has automatically distributed {amount} reward to your spot account, and you can check it by logging in to your account. Reward validity period: {effectiveDays} days, after completing the spot or contract transaction, XT will be released automatically after T+1 days.

The reward has arrived

The {amount} reward issued to you by the system (enjoyed benefits: {unlockAmount} ) is about to expire, please log in to your account as soon as possible to view and complete the transaction to obtain benefits. Reward validity period: {effectiveDays} days, after completing the spot or contract transaction, XT will be released automatically after T+1 days.

reward expiring soon

The system has automatically distributed {amount} reward to your spot account, and you can check it by logging in to your account.

The red envelope has arrived

The red envelope has been returned

You have received a coupon!

You have an experience coupon activated!

One of your coupons is about to expire!

The {symbol} position in your futures account will generate an expected funding fee {amount} USDT, and the expected rate is {rate} .

Expected Funding Rate

The {symbol} prediction contract you hold has been delivered at {price} USDT price at {time} (UTC). You can view the record in the contract funds flow.

All positions are delivered

Hello! The {symbol} prediction contract you hold has been extended, and the latest delivery time is {deliveryTime} (UTC).

The position has been rolled over

Hello! The {symbol} prediction contract you hold has stopped trading at {time} (UTC).
 The delivery time is {deliveryTime} (UTC).

The position has been stopped from trading

Your isolated position {symbol} contract has been successfully called for margin,
 The current margin rate is {rate}

successful margin call

Your {symbol} contract's isolated position automatic margin call failed,
 Please replenish your margin or reduce your position immediately.

Automatic margin call failed

Your {symbol} prediction contract is close to being liquidated. The current mark price is: {markPrice} , and the liquidation price is: {liquidationPrice} . Please control the risk reasonably.

Position close to liquidation

Your {symbol} prediction contract has been partially liquidated at {time} (UTC). The liquidation price is: {liquidationPrice} , quantity: {positionSize} pieces, please control the risk reasonably

partial forced liquidation

Your position {symbol} prediction contract has been liquidated at {time} (UTC), the liquidation price is: {liquidationPrice} , quantity: {positionSize} pieces

forced liquidation

Your position {symbol} prediction contract has been automatically reduced at {time} , the price is: {price} , the quantity: {positionSize} pieces

Automatic deleveraging

The {coin} margin ratio of the U-standard contract account has reached {rate} , please replenish the margin immediately or reduce the position.

Full position close to forced liquidation

All {coin} positions in the U-margin contract account have been liquidated, and the mark price of {symbols} is {prices} .

Notice of forced liquidation of all positions

Thank you for submitting your documents and applying to be a trader for XT.COM's documentary trading plan. Unfortunately, your submission
 There may be errors in the documents, so the application was not approved.
 No problem, you are welcome to resubmit your documents and we will review your application again:
 1. Screenshots of transaction records in the past month, including derivatives contract win rate (%)
 2. Personal social media profiles, number of followers and information about the cryptocurrency community
 3. Screenshot of personal trading income and performance in the past month
 [Start here] Link to the home page interface

Failed to apply for single member

Congratulations, your application for the XT.COM documentary trading plan has been approved.
 [Initiate order] Link to my order interface

The single member application is successful

Congratulations, your rank has been upgraded! You can enjoy more rights and interests of single-carrying members.
 [Details of rights and interests of a single member] My link to the single interface

Upgrade with a single member

Unfortunately, your order-carrying member level has been downgraded, and your order-carrying member rights have been adjusted.
 [Details of rights and interests of a single member] My link to the single interface

Downgrade with a single member

Sorry, due to excessive market fluctuations, you failed to open/close a position following the {symbol} of the order leader " {leader} ". You can:
 [Manual position closing] Link to my documentary interface

Failed to copy the order

Sorry, you have been unfollowed by the order leader {leader} , please re-select the order leader to carry out the follow-up transaction

Unfollow manually

Sorry, the order leader {leader} you followed was unfollowed by the system, please re-select the order leader to carry out the copy transaction

Automatically unfollow

Congratulations on obtaining the qualification of "XT.COM Copy Trader Plan"!
 Since your transaction volume and rate of return in the XT contract have met the requirements for becoming an order taker, you are hereby invited to become an XT contract order taker.
 This invitation is a targeted invitation, and only users who have received the email can participate.
 "Click to apply for the order carrier of the XT copy trading plan!" link to the home page of the copy

Invite to be a taker

Contract follow-up reminder

The {symbol} perpetual contract short position is successfully opened, and the average opening price is {openPrice} . Bring a single member {leader}

Copy order - open position successfully

{symbol} perpetual contract is closed successfully, with an average closing price of {closePrice} and a profit of {realizedProfit} . Bring a single member {leader}

Copy order - close position successfully

The {symbol} perpetual contract account has insufficient balance, and failed to open a position with the order leader {leader}

Copy order - failed to open a position

{symbol} perpetual contract exceeded the maximum openable amount of the current leverage multiple, and failed to open a position with the order leader {leader}

{symbol} perpetual contract exceeded the upper limit of the position value of the order leader, and failed to follow the order leader {leader} to open a position

{symbol} perpetual contract exceeded the upper limit of the position value of the follower, and failed to open a position with the order leader {leader}

The {symbol} delivery contract you hold has been delivered at {price}{coin} at {time} (UTC). You can check the record in the contract funds flow.

Your {symbol} delivery contract has been extended, and the latest delivery time is {deliveryTime} (UTC).

The {symbol} delivery contract you hold will stop trading at {time} (UTC), and the delivery time will be {deliveryTime} (UTC).

Positions are about to stop trading

Your {symbol} delivery contract is close to being liquidated. The current mark price is: {markPrice} and the liquidation price is: {liquidationPrice} . Please control the risk reasonably.

Your {symbol} delivery contract has been partially liquidated at {time} , the liquidation price is: {liquidationPrice} , quantity: {positionSize} contracts, please control the risk reasonably.

Your {symbol} delivery contract has been liquidated at {time} , the liquidation price is: {liquidationPrice} , quantity: {positionSize} contracts.

Your position {symbol} delivery contract has been automatically reduced at {time} , the price is: {price} , the quantity: {positionSize} contracts.

Sorry, due to excessive market fluctuations, you failed to open a position following the {symbol} of the order leader {leader} .

Sorry, due to excessive market fluctuations, you failed to open a position following {symbol} of the order leader {leader} . 

 My copy (click to enter my copy page)

Copy opening failed

Sorry, due to excessive market fluctuations, you failed to close the position following the {symbol} of the order leader {leader} . If necessary, please close the position manually.

Sorry, due to excessive market fluctuations, you failed to close the position following the {symbol} of the order leader {leader} . If necessary, please close the position manually. 

 My copy (click to enter my copy page)

Failed to close the position with the copy

Your order-carrier level has been updated, the latest level {newLevel} (maximum follower number {maxFollowerSize} , profit sharing ratio {profitRate} )

Dear XT.COM users: 

 Your order driver level has been updated (the latest level {newLevel} ), and the specific evaluation data is as follows ( {startTime} - {endTime} ):
 Average daily contract total equity (USDT) in the past 30 days: {equity} (satisfies {equityLevel} )
 or
 The total transaction amount (USDT) with orders in the past 30 days: {tradeAmount} (satisfies {tradeAmountLevel} )
 and
 Contract rate of return in the last 30 days: {incomeRate} (satisfies {incomeRateLevel} )
 Final evaluation level = {newLevel} (maximum number of followers {maxFollowerSize} , profit sharing ratio {profitRate} ) 

 Next level {nextLevel} (maximum follower number {nextMaxFollowerSize} , profit sharing ratio {nextProfitRate} ):
 Average daily contract total equity (USDT) in the past 30 days ≥ {equityLimit}
 or
 The total transaction amount (USDT) with orders in the past 30 days ≥ {tradeAmountLimit}
 and
 The contract rate of return in the past 30 days ≥ {incomeRateLimit} 


 Thank you for your support and trust in XT.COM. 

 XT.COM team

Documentation-level update (upgrade)

With single player level update (upgrade)

Copy-level update (downgrade)

With single-member level update (downgrade)

Dear XT.COM users: 

 Your order driver level has been updated (the latest level {newLevel} ), and the specific evaluation data is as follows ( {startTime} - {endTime} ):
 Average daily contract total equity (USDT) in the past 30 days: {equity} (satisfies {equityLevel} )
 or
 The total transaction amount (USDT) with orders in the past 30 days: {tradeAmount} (satisfies {tradeAmountLevel} )
 and
 Contract rate of return in the last 30 days: {incomeRate} (satisfies {incomeRateLevel} )
 Final evaluation level = {newLevel} (maximum number of followers {maxFollowerSize} , profit sharing ratio {profitRate} ) 

 The highest level {nextLevel} (maximum follower number {nextMaxFollowerSize} , profit sharing ratio {nextProfitRate} ):
 Average daily contract total equity (USDT) in the past 30 days ≥ {equityLimit}
 or
 The total transaction amount (USDT) with orders in the past 30 days ≥ {tradeAmountLimit}
 and
 The contract rate of return in the past 30 days ≥ {incomeRateLimit} 


 Thank you for your support and trust in XT.COM. 

 XT.COM Team

The stop loss order has been triggered

The experience gold position has been closed

Bonus position has been closed

Experience gold commission failed

Futures bonus order failed

The lead trader you are following has a new futures trading

Futures copy trading-Unfollow

BTCUSDT contract price breaks through {priceMilestone}

BTCUSDT contract breaks through {priceMilestone}

BTCUSDT contract price fell below {priceMilestone}

BTCUSDT contract falls below {priceMilestone}

BTCUSDT contract price increased {changeRate} in the past 24 hours

BTCUSDT contract increased by {changeRate} %

BTCUSDT contract price decreased by {changeRate} within 24 hours

BTCUSDT contract down by {changeRate} %

Create a passkey

Delete pass key

Partner: {name} (UID: {uid} ) is inviting you to become his direct customer on the XT partner management platform, waiting for your confirmation; <p> View details > >

You have a direct guest invitation notice, please click to open the email to check

Partner: {name} (UID: {uid} ) is inviting you to become his partner in the XT partner management platform, waiting for your confirmation; <p> View details > >

You have an affiliate invitation notice, please click to open the email to check

Congratulations, you have successfully passed the audit and officially become an XT partner! <p> Start your XT partner journey now and earn rebates by inviting transactions! <p> Enter XT partner background > >

XT partner review progress update notification

Your XT partner application review progress has been updated, come and check the progress! <p> > now >

Dear partner, your user UID: {userId} , because {riskDate} violates Article 2 of the risk control rules: the number of orders with a daily holding time of less than 3 minutes accounts for more than 20%, and you will be deducted proportionally The commission {commissionAmount} USDT is the standard rebate.

Risk control notice

Dear partner, your user UID: {userId} , risk control rule 2 is triggered due to {riskDate} : no commission for orders with a daily position of less than 1 minute, and the commission amount has been deducted proportionally to {commissionAmount} usdt, Please note.

The application for order leader was successful

Application for an expert trader has failed

The level as a spot order leader has leveled up

The level of the spot order leader has been downgraded

Spot order-vacancy reminder

Spot order- bought successfully

Spot order-successfully sold

Spot order-purchase failed

Spot order-cancel this following

Spot copy traders - Remove Follows

The expert trader you follow has a new spot transaction

Your contract strategy {ID} has successfully started running, you can check the running status of the strategy in real time on the XT platform

contract grid

Your contract strategy {ID} has been terminated because the market price has reached the strategy stop price

Your contract strategy {ID} has been terminated due to market price fluctuations and the position has been liquidated

Your contract strategy {ID} has been terminated due to insufficient account balance

Your contract strategy {ID} has been terminated, you can enter the XT platform to view the strategy details.

Avatar review failed

<strong> Your <span style='color: #FFBE40;'> advanced real-name verification </span> email verification code is </strong> {verifyCode}

Your verification code is {verifyCode} , which is only used for primary real-name authentication.

Primary real-name authentication

<strong> The email verification code of your <span style='color: #FFBE40;'> Primary Real-Name Verification </span> is </strong> {verifyCode}

Your verification code is {verifyCode} , which is only used for advanced real-name authentication.

Advanced real-name authentication

<strong> Your email verification code for <span style='color: #FFBE40;'> create API </span> is </strong> {verifyCode}

Your verification code is {verifyCode} , which is only used to create API.

Create an API

<strong> The email verification code of your <span style='color: #FFBE40;'> modification API </span> is </strong> {verifyCode}

Your verification code is {verifyCode} , which is only used to modify the API.

Modify the API

Reset sub-account login password

reset subaccount google authenticator

Bind sub-account Google Authenticator

Unbind sub-account Google Authenticator

Create a digital red envelope

Receive digital red packets

Withdrawal request has been withdrawn

Recharge is being processed

Enable quick withdrawal

Add a whitelist address

Sign up for free and begin your crypto journey.

Your {{amount}} {{coin}} trial fund will expire soon, and is valid until {{time}}!

Trial fund expiration notice

Congratulations, {{amount}} {{coin}} trial fund has been distributed to your futures account, and is valid until {{time}} (UTC)

Trial fund distribution notice

Your {{amount}} {{coin}}  trial fund has been recalled, thank you for your participation!

Trial fund recall notice

Sorry,  the trader {{leader}} you follow is unfollowed by the system , please select other trader to trade

Unfollow automatically

Dear XT.COM user: 

We regret to inform you that due to excessive market volatility, you failed to open/close a position with {{symbol}} of trader {{leader}} , you can: 

 [Manually close] in my trading interface link 

 XT.COM Team

Trading failed

Dear XT.COM user: 

Congratulations, you are qualified for "Trader of XT.COM Copy Trading Program"! 

Since your transaction volume and income in XT futures have reached the threshold of becoming a trader, you are specially invited to become an XT futures trader. 

This invitation is targeted, and only users who received the email can participate. 

 "Click on the trader who apply for XT trading program!" in trading home page link. 

Thank you for your continued support! If you have any questions, please contact xt.com customer service team via XXX. We will serve you wholeheartedly.


 XT.COM Team

Invite to be a trader

Sorry, you were unfollowed by trader {{leader}} , please select other trader to trade

Dear XT.COM user: 

 Congratulations, the trader you follow is available now. 

 [View Details] in My Trade Detail Interface 

 XT.COM Team

Vacancy notice

Dear XT.COM user: 

Thank you for submitting your documents to apply to become a trader in XT.COM Copy Trading Program. Unfortunately, the documents you submitted may be incorrect, and the application failed to pass review. 

Don't worry, you are welcomed to submit your documents again and we will review your application: 

 1. Screenshots of trading records over the past one (1) month, including derivatives futures win rate (%) 

 2. Personal social media profiles, the number of followers and relevant information on cryptocurrency community 

 3. Screenshot of personal trading income and business performance over the past one (1) month 

 [Start here] Trading homepage interface 

Thank you for your continued support! If you have any questions, please contact xt.com customer service team via XXX. We will serve you wholeheartedly

 XT.COM Team

Trader application failed

Dear XT.COM user: 

Congratulations, the trade master of XT.COM trading program you applied has been approved. 

 [Start to lead order] in my lead order interface link

Thank you for your continued support! If you have any questions, please contact xt.com customer service.

 XT.COM Team

Trader application successful

Dear XT.COM user: 

Sorry, your trader level is downgraded! Your trader rights are adjusted. 

 [Trader rights details] in my trade link interface 

 XT.COM Team

trader downgrade

Dear XT.COM user: 

Congratulations, your trader level is upgraded! You can enjoy more trader rights. 

 [Trader rights details] in my trade link interface 

 XT.COM Team

Trader upgrade

Your {amount}{coin} discount bonus is about to expire and is valid until {time} (UTC)

Discount fund expiration notice

Congratulations, {amount}{coin} futures discount bonus has been issued to your futures account and is valid until {time} (UTC)

Discount bonus recall notice

Your {amount}{coin} discount bonus has been recalled, thank you for your participation!

Crypto Loan Services

Cloud Mining

Deposit & Withdraw

Soccer Prediction

Affiliate Program

XT Airdrop

Overview

Launchpad

Listings

XT Membership

Referral Rewards

Referral Program

On-chain Earn

Trading Bot

Login without password or verification code

Keep your account safe

Available on all your devices

Passkey

Passkey (recommended)

Futures VIP application failed
Unfortunately, your futures VIP application has not been approved. Please submit again and upload the screenshots of trading volume over recent{{days}} days and VIP level in other platforms.

Futures VIP application approved
Congratulations, futures VIP application you submitted has been approved, please view at transaction page

Notice on User's Application of Professional Level

Futures VIP level adjustment
Your VIP level has been adjusted due to futures trading volume over {{days}} days fails to reach the threshold

XT BLOG

XT Exchange 2025 Annual Recap: Record Growth, Stronger Identity, Bigger Vision