USD-Margined Futures FAQ
1. Why USD (USDC) is better?
A: USDC/USD is a stablecoin created by Coinbase and Circle in 2018. Like USDT or any other USD-backed token, its price remains fixed at $1.
The coin is governed by the Centre Consortium, which oversees the technical and financial standards for the stablecoin and ensures that there is transparency around a true 1-to-1 backing. This means that for every USDC created, $1 of USD is held in reserve in the form of US Dollars and other cash equivalents.
2. How to Trade USD-Margined Futures?
A: First of all you are require to have some amount of USD to start the trade, you may turn on the borrow mode to trade if your USD total available balance is insufficient. Otherwise you also may obtain the USD via below method.
- Use our Convert features to convert USDT to USD.
- Deposit USDC to BIT USD wallet address, click here for how to deposit cryptocurrency to BIT？
- Buy USDC (1 USDC = 1USD)via Banxa -Visa/Master Card, click here to view the guidance
3. Why use Unified Margin borrow mode to trade?
A: If you want to trade a currency and its derivatives even if your available balance of the currency is insufficient, you can select [borrowing mode] in the setup.
When a user turns on the borrowing mode, as long as the user’s USDT total available balance is sufficient, the user can sell a currency or trade its derivatives even if the available balance of the settlement currency is insufficient.
For each currency, if the equity falls below the sum of the initial margin and frozen amount, the shortfall is the potential liability. Short spot initial margin and maintenance margin are charged on potential liabilities, and their USDT equivalent amounts are added to the respective USDT total margin amount.
When a user's trades or position losses cause the currency’s equity below zero, the negative amount is liability. If the liability amount is within the interest-free amount, no interest will be charged; if the liability amount exceeds the interest-free amount, BIT will charge interest based on the full amount of liability in that currency. If the liability amount exceeds the borrowing limit of the currency, the system will trigger auto repayment to repay the liability. Please click here for more details on the borrow mode
4. How to check the profit and loss?
A: Once you had open a trade, you may refer to the [Future] --[Position] to identify the PNL[USD] & ROI
5. What is the Fees, Leverage & Margin?
- Fees - Maker: 0.02% , Taker: 0.05% & Forced liquidation fee: 0.5%. Check VIP fee rates here
- Leverage - 1-50x leverage (cross margin), which will be decided by position. Refer here for more details
- Margin Rules- Please refer here for the details
6. Where can you get more latest information?
A: You are encourage to join our Telegram group to obtain the latest information and promotion. Click here to join BIT Official Telegram group