Perpetual Futures Overview – HashKey Global

Perpetual Futures are a type of digital asset derivative product that allows users to speculate on the rise or fall of a contract's price. Users can go long (buy) or short (sell) on a contract to profit from a digital asset's price increase or decrease. Choosing to go long indicates that the user expects the future price to rise in the future. Conversely, choosing to go short indicates that the user expects the future price to fall. Perpetual futures have no expiration date and can be held indefinitely.

Trading Rules

Trading Time

Perpetual futures support 24/7 trading and settle in real time.

00:00 (UTC+8)
08:00 (UTC+8)
16:00 (UTC+8)

Types of Trades

Trades are classified into two types: opening and closing positions. Each type can be further divided into buy and sell directions:

Buy to Open Long (Bullish): When a user is bullish and expects the index to rise, they buy a certain number of contracts, increasing their long position.
Sell to Close Long: When a user no longer expects the price to rise, they sell their long contracts to exit the market, decreasing their long position.
Sell to Open Short (Bearish): When a user is bearish and expects the index to fall, they sell a certain number of contracts, increasing their short position.
Buy to Close Short: When a user no longer expects the price to fall, they buy contracts to offset their short position and exit the market, decreasing their short position.

Positions

After opening a position, the user holds a position in the same direction. Positions of the same type and direction will be merged. For example, if a user first opens one BTC perpetual future and then opens two more positions, the position will show three BTC perpetual futures in total, not separately. The cost for closing a position is calculated using the moving average method, meaning the cost price for calculating gains or losses is based on the average entry price.

Notes

Leverage can only be switched for active contracts.
Leverage cannot be switched if there are open limit or conditonal orders for the contract.
Leverage can only be switched to available leverage multiples for the user.
Switching leverage is not allowed if it causes the account's available margin to fall below zero.
Switching leverage is not allowed if it causes the account's margin rate to be less than or equal to zero.
Switching leverage may fail due to the contract being inactive, insufficient margin, network issues, or system problems.

Order Types

Limit Order: Users specify the price and quantity for their order. The order will be matched based on price and time priority rules. If the user’s buy price is higher than the market price or the sell price is lower than the market price, the order will be executed at the market price that benefits the user. Limit orders can be used for both opening and closing positions. They can choose from three time in force(TIF): "Post Only," "Fill or Kill," and "Immediate or Cancel." If no TIF is selected, the default is "Good Till Cancelled."
Conditional Order: Users can pre-set trigger conditions and the order price and quantity. When the market price reaches the trigger condition, the system will place the order based on the pre-set price and quantity (i.e., a limit order).
Market Order: When placing a market order, users only input the order quantity without specifying the price. The system will read the latest market price when the order is received and place a limit order at that price.
Take Profit/Stop Loss: These are pre-set orders with trigger conditions (take profit or stop loss prices) and order prices. When the market price reaches the trigger condition, the system will place the order based on the pre-set price and quantity, achieving the goal of taking profit or stopping loss.

Leverage

Perpetual futures support leverage ranging from 1x to 10x.

These mechanisms provide users with flexible and diversified trading options, allowing for strategic investment in response to market fluctuations.