Futures Product Introduction

  • GlobalOps

    HashKey 101: Understanding Margin Modes: Isolated vs. Cross Margin
    img_v3_02i5_8e0f500e-3050-45f6-99c7-37e8052118hu.jpgIn futures trading, the mode you choose affects how risks and capital are managed. Let’s break down the key differences between Isolated Margin and Cross Margin modes.
     

    Isolated Margin Mode

    Each position has its own dedicated margin. For example, you open a BTC/USDT long position worth $1,000 and assign $100 as margin to this position in Isolated Margin Mode.
     
    If the position incurs a loss, only the $100 margin is at risk. If liquidation occurs, it will only affect this position, and other trades remain untouched.
     
    Pros:
    • Independent risk control: Liquidation of one position won’t impact others.
    • Clear P&L: Gains or losses are isolated per position.
    Cons:
    • Requires active margin management for each position.
    • Lower capital efficiency since funds are locked individually.
     

    Cross Margin Mode

    Shares margin across all open positions in the same account. For example, you have $5,000 in your account and choose to open two positions: BTC/USDT long: $2,000; ETH/USDT short: $1,000. Both positions share the $5,000 margin.
     
    If the BTC trade incurs a loss, the system uses funds from your remaining margin to keep it open. However, if total losses exceed the margin, your account will be liquidated.
     
    Pros:
    • Higher capital efficiency: Funds are shared across all positions.
    • Simpler to manage: No need to assign margin manually.
    Cons:
    • Higher risk: Losses in one position can drain the entire account.
    • Harder to control risk for individual positions.
     

    Which Should You Choose?

    Choose Isolated Margin if:
    • You want to limit risk for specific trades.
    • You are trading in volatile markets and prefer controlled losses.
     
    Choose Cross Margin if:
    • You are confident in your strategy and want higher capital efficiency.
    • You prefer simplicity in managing multiple trades.
     

    Summary

    • Isolated Margin: Best for risk-averse traders focused on protecting their account.
    • Cross Margin: Ideal for risk-tolerant traders aiming to maximize capital usage.
     
    Trade smart, and always choose the margin mode that aligns with your strategy!
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  • HashKey Global Team

    HashKey Futures Trading 101: Your Step-by-Step Guide to Futures Trading

    Step 1: Open your futures account

    Log into your HashKey Global account and complete KYC verification. For a step-by-step guide to registration and KYC, please visit our Discord community.
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    After KYC verification, click on "Open Futures Account" and select "Apply now".
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    Select the default leverage and click "Continue".
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    Complete and submit survey to test your futures trading knowledge and risk tolerance.
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    You are now ready to start your futures trading journey!
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    Step 2: Transfer funds

    Go to "Assets", select "Futures Account", and then "Transfer".
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    Select the currency and the quantity of the assets you wish to transfer, then click "Confirm".
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    Step 3: Open positions
    Firstly, select the pair you want to trade.
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    Choose the margin mode (cross margin/isolated margin) based on your risk preference. Details of the margin types can be found in the top right corner of the trading page. Currently, only cross margin is available; isolated margin will be available soon. Please stay tuned!
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    Select Limit Price/Market Price/Trigger order based on your preferences, set the value of your order, then choose Long/Short position.
     
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    Step 4: Close positions

    View all your opened positions in "Positions". Choose either market price or limit price to close the position. If you have multiple opened positions, you can also select "Close All Positions".
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    FAQs:

    How to calculate the PNL?

    PNL = (mark price - entry price)*quantity
     

    How to check if you have sufficient margin balance to prevent liquidation?

    You can check your positions' MMR in "Positions". The smaller the MMR, the less risky the position is for liquidation. Once MMR reaches 100%, liquidation will occur.
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    How to check futures order records?
    Select "Order History" to view your orders. If the orders are more than 6 months old, select "All Orders".
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    You can see details of your fees, funding fees, ADL, or liquidation in "Transaction History".
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    How to share my ROI ?

    In "Positions", click the share button to showcase your ROI!
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  • HashKey Global Team

    Perpetual Futures Overview
    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:
    1. 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.
    2. 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.
    3. 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.
    4. 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

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

    Order Types

    1. 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."
    2. 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).
    3. 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.
    4. 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.
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  • HashKey Global Team

    Cross Margin and Isolated Margin Mode:
    In perpetual Futures, cross margin and isolated margin refer to the ways in which users need to pay margin when opening or closing positions.
     
    Cross margin refers to using all assets in the Futures account, including position margin, order margin, and unrealized P&L, as account margin. The advantage is that users' funds are shared, and there's no need to allocate margin separately for different currencies or Futures directions. However, the risk lies in the fact that in the event of liquidation, the entire account's assets and other positions will be liquidated.
     
    Isolated margin means that when a position is opened, the margin injected for this position is only used for this specific position. Therefore, if one position is liquidated, it does not affect other positions, even if they are in different currencies or directions.
     
    Currently, HashKey Global perpetual Futures only support cross margin mode. Isolated margin mode is coming soon.
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  • HashKey Global Team

    What is Position Margin?

    Account Margin:
    The total margin of the account, including available margin, used margin, and unrealized P&L.

     

    Available Margin:
    The portion of the margin that can be used for opening new positions.
    Available Margin = Wallet Balance + Unrealized P&L in Cross Margin - Used Margin

     

    Used Margin:
    Margin used for open orders = Order Price * Order Quantity / Leverage
    Margin used for open positions = Average Entry Price * Position Quantity / Leverage

     

    Account Maintenance Margin:
    The sum of the maintenance margin for all positions. When the total maintenance margin equals the account margin, a forced liquidation is triggered.
    ∑Total Maintenance Margin = Average Entry Price * Position Quantity * Maintenance Margin Rate

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  • HashKey Global Team

    Perpetual Futures: What are Makers and Takers?

    Orders created by market makers are placed in the order book for buying and selling, rather than being executed immediately. For example, if a limit order is created to sell 1 BTC when the price reaches $50,000, these orders provide liquidity to the market, allowing other traders to more easily buy or sell BTC immediately when conditions are met. Traders who buy or sell immediately are called takers. In other words, takers are the ones who execute orders created by makers.

     

    Takers:
    If an order is immediately executed before entering the order book, you are a taker. This is the case whether your order is partially or fully executed.
    Trades from market orders are always considered taker trades because market orders never appear in the order book. Instead, they are executed directly based on the conditions set by the opposing party, making them taker trades.
    Immediate or Cancel (IOC) and Fill or Kill (FOK) orders also fall under taker orders.

     

    Makers:
    When you place an order, either partially or fully, that enters the order book (e.g., a limit order), any subsequent trades from that order will be maker trades.
    Note:
    Good 'Til Canceled (GTC) orders can be traded as both taker and maker orders.
    Using limit orders does not guarantee that your order will be a maker order.
    If you want to ensure that your order enters the order book before being executed, select "Post Only" when placing your order.

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  • HashKey Global Team

    Futures Position Mode

    Currently, HashKey Global perpetual futures only support bi-directional position mode. This mode means that users can simultaneously hold long and short positions, which can partially offset profits and losses in uncertain market conditions, thus protecting investors' interests.


    For example:
    1. Suppose you opened a long position of 5 ETH when the latest price of the ETH/USDT perpetual futures reached 1900 USDT, and then opened a short position of 6 ETH when the latest price reached 1890 USDT. With the market fluctuating, when the latest price of the ETH/USDT perpetual futures reaches 1920 USDT, the unrealized profits and losses are as follows:
    Long position: (1920 - 1900) * 5 = 100 USDT
    Short position: (1890 - 1920) * 6 = -180 USDT
    At this point, the long position profits 100 USDT, while the short position incurs a loss of -180 USDT, resulting in a net loss of -80 USDT. This loss is 100 USDT less than if only a short position were opened.

     

    2. Suppose you opened a long position of 8 ETH and a short position of 6 ETH when the latest price of the ETH/USDT perpetual future reached 1900 USDT. If the market rises to 1950 USDT, the floating profits and losses are as follows:
    Long position: (1950 - 1900) * 8 = 400 USDT
    Short position: (1900 - 1950) * 6 = -300 USDT
    At this point, the long position profits 400 USDT, while the short position incurs a loss of -300 USDT, resulting in a net profit of 100 USDT.

     

    Based on the above data, it can be seen that the bi-directional position mode can reduce risk and minimize potential losses. At the same time, in bi-directional mode, the user's capital utilization will be more flexible and convenient.

     

    Please note that the above trading cases are for reference only and do not constitute any investment advice. Please consider carefully and invest rationally.

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