1. What is contract trading?
Perpetual contracts are a type of futures contract that requires no delivery and can be held indefinitely. Users can make predictions about market price increases or decreases to choose "Buy Long" or "Sell Short" contracts and earn corresponding profits.
2. What is the difference between Isolated Margin and Cross Margin?
- Isolated Margin: The maximum loss is capped at the initial margin allocated to the position. When the position is liquidated, no extra funds from the user's account balance will be added to the position.
- Cross Margin: The system uses all available account balances as margin to avoid liquidation. Profit from other positions can increase the margin of the losing position. Note: All positions are set to "Cross Margin" by default.
3. What is the meaning of "lot size"?
A "lot size" is a trading unit. For example, 1 lot equals 0.001 BTC.
4. What is leverage?
There are two types of leverage:
- Initial Leverage: The leverage ratio set manually by the user when opening a position.
- Dynamic Leverage: The leverage ratio that changes based on unrealized profit and loss after opening a position.
RooEx supports up to 100x leverage.
5. How to open and close contract positions?
Refer to the Beginner's Guide to Contract Trading.
6. What are Positions, Realized P&L, and Unrealized P&L?
- Positions: The number of assets currently held in trade units.
- Realized P&L: The profit or loss confirmed after settlement or closing the position.
- Unrealized P&L: The estimated profit or loss based on the current mark price, excluding fees and funding costs.
7. How is the trading fee calculated?
Formula: Trading Fee = Position Value × Fee Rate.
- Fees are charged once when opening a position and again when closing it.
8. What is Buy Long and Sell Short?
- Buy Long: Opening a position expecting the price to rise. Profit is made when prices increase.
- Sell Short: Opening a position expecting the price to drop. Profit is made when prices decrease.
9. What is Close Long and Close Short?
- Close Long: Closing or settling a long position by selling the asset.
- Close Short: Closing or settling a short position by buying the asset.
10. What is the funding fee?
Perpetual contracts do not expire; therefore, a funding fee mechanism anchors the contract price to the spot price.
- Settlement occurs every 8 hours at UTC 04:00, 12:00, and 20:00 (with up to 20-second time deviation).
- Funding fees are only charged to users holding positions at the time of settlement. Users who close their positions before settlement will not incur funding fees.
11. What is Maintenance Margin and Maintenance Margin Rate?
- Maintenance Margin: The minimum margin required to maintain a position, calculated using the formula:
Maintenance Margin = Position Value × Maintenance Margin Rate. - Maintenance Margin Rate: Changes according to the risk tiers of the position. If the margin rate falls below the maintenance margin rate, forced liquidation or auto-deleveraging may be triggered.
12. Why was my position liquidated?
When the position's margin falls below the required maintenance margin, the position will be liquidated, and the maintenance margin is lost.
Tip: Use lower leverage and always maintain sufficient margin to reduce risks.
13. Why was my order canceled?
Possible reasons for cancellation include:
- Manual cancellation by the user.
- Market orders fail to match corresponding opposite orders.
- Positions are forcibly liquidated, canceling all associated orders.
- No position exists when placing a close order.
- Stop loss or take profit orders are canceled during liquidation.
- Conditional orders triggered but lack sufficient margin upon activation.
- Orders are canceled if the position size decreases or the position direction changes to zero.
Contact Us
For further assistance, contact RooEx Support via:
- Support Email: support@rooex.com
- Customer Support: Log in to RooEx and submit a request in "Customer Support."