Trading Hours
Perpetual contracts are available for trading 24/7, matching the operating hours of spot trading. Since perpetual contracts have no expiration date, users can maintain their positions indefinitely as long as their account maintains sufficient margin.
Trading Types
The key difference between contract trading and regular trading lies in bidirectional trading. Perpetual contracts allow users to profit from both rising and falling markets.
Long Positions (Going Long)
- A long position reflects a bullish outlook. Users buy contracts at a specified price, increasing their long exposure upon successful order execution.
Short Positions (Going Short)
- A short position anticipates a price decline. Users initiate a short sale, increasing their short exposure when the order is filled.
To close a position, users simply select the “Close Position” option, which settles either long or short holdings without opening new positions.
Order Types
Limit Orders
Users specify both price and quantity for precise trade execution. Limit orders are also applicable when closing positions.
👉 Maximize your trading precision with limit orders
Note: Order prices must comply with the platform’s limit price rules.
Market Orders (Opponent Price)
Orders are executed at the best available market price. Users only need to input the desired quantity.
Position Management
After an order is filled, users can monitor their active positions under the “Positions” tab. Each contract supports simultaneous long and short holdings.
Example:
– Opening a 1 BTC long + 0.5 BTC short results in a net position of 1 BTC long and 0.5 BTC short.
Order Limits
To prevent market manipulation, Bibox enforces maximum single-order thresholds:
| Asset | Maximum Order Size |
|---|---|
| BTC | 100 |
| ETH | 2,000 |
| EOS | 300,000 |
| BCH | 4,000 |
| LTC | 10,000 |
| XRP | 500,000 |
| LINK | 10,000 |
| DOT | 10,000 |
| SUSHI | 10,000 |
| UNI | 10,000 |
| FIL | 10,000 |
| AAVE | 2,000 |
Unrealized P&L (USDT)
Calculated based on the difference between entry price and index price:
-
Long Positions:
Quantity × (Index Price − Entry Price) -
Short Positions:
Quantity × (Entry Price − Index Price)
Important: A slight premium/discount (basis) typically exists between execution price and index price. This means positions may show immediate unrealized gains/losses upon opening. Manage leverage carefully to avoid unnecessary liquidation risks.
👉 Learn advanced risk management strategies
FAQs
1. Can I hold perpetual contracts indefinitely?
Yes, perpetual contracts have no expiry date. Positions remain open as long as margin requirements are met.
2. What’s the difference between limit and market orders?
Limit orders allow price specificity, while market orders prioritize speed by executing at current market rates.
3. Why does my position show unrealized P&L immediately?
This reflects the natural basis (difference between execution and index prices), common in derivatives markets.
4. Are there fees for holding positions overnight?
Unlike traditional futures, perpetual contracts typically charge/receive funding fees periodically instead of overnight fees.
5. How does bidirectional trading work?
Users can simultaneously hold long and short positions for the same asset, enabling complex hedging strategies.
6. What happens if I exceed order size limits?
The system will reject oversized orders. Divide large trades into smaller compliant increments.
Key Takeaways
- 24/7 Market Access: Trade anytime without expiration constraints
- Flexible Strategies: Profit from both bullish and bearish markets
- Risk Controls: Order limits and margin requirements protect market stability
- Transparent Pricing: Unrealized P&L updates in real-time
For further details on liquidation mechanisms or contract specifications, consult Bibox’s official documentation.
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