The OP perpetual coin-margined contract is now available on major trading platforms. This guide covers everything you need to know about this new financial instrument, from its core features to trading strategies.
What Is the OP Perpetual Coin-Margined Contract?
A perpetual coin-margined contract is a derivative product that allows traders to speculate on the future price of an asset without an expiration date. Unlike traditional futures, perpetual contracts use a funding mechanism to keep their price aligned with the spot market.
The newly launched OPUSD perpetual contract uses OP as the settlement currency and tracks the OP/USD index. This means all profits and losses are calculated and paid in OP tokens.
Key Contract Specifications
| Feature | Detail |
|---|---|
| Underlying Asset | OP/USD Index |
| Settlement Currency | OP |
| Contract Face Value | 10 USD |
| Pricing Unit | USD price per 1 OP |
| Minimum Price Movement | 0.0001 |
| Leverage Range | 0.01x to 20x |
| Funding Fee Mechanism | Clamp(MA([(Best Bid + Best Ask)/2 - Spot Index] / Spot Index - Interest), -0.75%, 0.75%) with Interest = 0 |
| Trading Hours | 24/7 |
The funding fee is designed to maintain price equilibrium between the contract market and spot prices. These fees are exchanged directly between long and short position holders periodically.
Special Initial Period Considerations
During the initial launch phase, the funding rate cap is temporarily reduced to prevent excessive fees due to potential premium instability. The standard cap will be restored after the stabilization period.
Traders should note that limits adjust automatically according to the schedule, requiring no manual intervention.
How Does Leverage Work in OP Perpetual Contracts?
Leverage allows traders to open positions larger than their initial margin. While this amplifies potential gains, it also increases risk exposure substantially.
The OPUSD contract offers flexible leverage from 0.01x to 20x, accommodating different risk appetites and trading strategies. Beginners should start with lower leverage until they become familiar with market dynamics.
👉 Explore advanced trading strategies
Margin Requirements and Liquidation
Maintenance margin requirements vary based on leverage used and position size. Traders must monitor their margin levels to avoid liquidation, which occurs when available margin falls below required levels.
Using stop-loss orders and proper position sizing can help manage liquidation risks effectively.
Trading Strategies for OP Perpetual Contracts
Successful trading requires both technical analysis and risk management. Here are common approaches:
- Trend Following: Identifying and riding established market trends
- Range Trading: Buying at support levels and selling at resistance levels
- Breakout Trading: Entering positions when price moves beyond key levels
- Hedging: Using perpetual contracts to offset spot market exposure
Each strategy requires different technical indicators and risk parameters. Backtesting approaches on historical data can help identify what works best for individual trading styles.
Frequently Asked Questions
What is the funding fee calculation method?
The funding rate is calculated using a clamped moving average of the difference between contract mid-price and spot index price, divided by the spot index. The rate is capped between -0.75% and +0.75%, with no interest component initially.
When are funding fees exchanged?
Funding payments occur periodically throughout the day. During the initial launch period, special rate caps apply to ensure fair pricing before transitioning to standard parameters.
What leverage levels are available?
Traders can select leverage from 0.01x to 20x based on their risk tolerance and experience level. Higher leverage increases both potential profits and risks.
How is the contract settled?
All settlements occur in OP tokens. Profits and losses are calculated based on price movement and converted to OP at settlement.
Is this contract available on mobile devices?
Yes, the OPUSD perpetual contract is accessible through web platforms, mobile applications, and API connections for automated trading strategies.
What risk management tools are available?
Traders can utilize stop-loss orders, take-profit orders, and margin monitoring tools to manage their exposure and protect their capital from significant losses.
Getting Started with OP Perpetual Contracts
Before trading, ensure you understand the contract specifications and risk factors. Start with smaller positions and lower leverage until you become comfortable with the product mechanics.
Monitor market conditions closely, especially during volatile periods, and always use risk management tools to protect your capital. The perpetual contract market operates 24/7, requiring continuous attention for active traders.
👉 Discover real-time trading tools
Remember that all trading involves risk, and it's important to only trade with capital you can afford to lose. As you gain experience, you can gradually increase position sizes and leverage levels according to your risk management strategy.