Futures trading stands as one of the most popular derivative products in the current cryptocurrency asset market. BingX futures trading involves contract investments using margin and leverage, allowing investors to potentially profit from both rising and falling markets through long (buy) or short (sell) positions.
- Going Long: This is when you anticipate a price increase. You buy low with the intention of selling high. For instance, buying 1 Bitcoin at $40,000 and selling it at $50,000 would yield a $10,000 profit.
- Going Short: This is when you anticipate a price decrease. You can sell high first and then buy back low later, even without initially owning the asset. For example, you could sell 1 Bitcoin at $70,000 and later buy it back at $60,000, netting a $10,000 profit.
The unique aspect of shorting, especially in perpetual contracts, is the ability to profit from a market downturn without ever holding the underlying cryptocurrency.
Understanding BingX Standard and Perpetual Contracts
The BingX exchange offers two main types of futures contracts: Standard Contracts and Perpetual Contracts. Here's a breakdown to help you choose the product that aligns with your preferences.
| Category | Industry Standard | Product Features | Target Users |
|---|---|---|---|
| Perpetual Contracts | Common across the industry | Caters to more advanced operations and handles large capital with ease | Regular & Advanced Users |
| Standard Contracts | Exclusive BingX product | Simple and easy to operate, newbie-friendly, suitable for small capital | Regular Users |
The most significant difference between BingX's Perpetual and Standard contracts lies in how they manage positions.
- In Perpetual Contracts, multiple orders of the "same currency" are merged into a single position. The system automatically calculates and displays an "average entry price," facilitating unified management.
- Standard Contracts manage each order independently, making the process simpler and more intuitive, which is ideal for beginners.
For example:
- In a Perpetual Contract, if you open a 1 BTC position at $40,000 and another at $50,000, the system merges them. Your total position would be 2 BTC with an average entry price of $45,000.
- In a Standard Contract, these two orders would remain separate, displayed individually as one position at $40,000 and another at $50,000.
A detailed comparison of their mechanics:
| BingX Contract Type | Margin Type | Order Methods | Position Management |
|---|---|---|---|
| Perpetual Contract | USDT-margined | Limit, Market, & Plan Orders | Multiple orders merged into one unified position |
| Standard Contract | USDT-margined (U本位) or Coin-margined (e.g., BTC) (币本位) | Market & Plan Orders | Each order is managed independently |
| BingX Contract Type | Fee Structure | Spread | Leverage |
|---|---|---|---|
| Perpetual Contract | Taker: 0.035%-0.050% Maker: 0.0015%-0.020% (Fees charged on both open & close) | No spread | 1-150x |
| Standard Contract | 0.045% (charged only on closing) | 0.027%-0.055% (based on trade volume) | 1-150x |
In summary, the Standard Contract is an exclusive BingX product designed as a beginner-friendly introduction to futures, operating on a spread model rather than an order book matching mechanism.
A key risk management difference involves margin modes (Cross and Isolated), which can be set for Perpetual Contracts. Cross Margin pools your balance for all positions, meaning a severe loss in one trade could potentially liquidate all your positions. Standard Contracts inherently function like an Isolated Margin mode for each trade, separating risk. If you are new to crypto futures, starting with Standard Contracts is recommended before transitioning to Perpetual Contracts.
Key Differences Between BingX Standard and Perpetual Contracts
- Order Types: Perpetual Contracts support Limit, Market, and Plan orders. Standard Contracts currently do not support Limit orders.
- Fee Structure: Perpetual Contracts charge a fee on both opening and closing a position. Standard Contracts charge a fee only upon closing (single-sided).
- Funding Rates: The funding rate mechanism for BingX's Standard Contracts is not synchronized with its Perpetual Contracts and may have slight differences.
- Pricing Model: Standard Contracts have a built-in spread (starting around 0.027%), whereas Perpetual Contracts are traded directly via the order book.
How Are BingX Perpetual Contract Fees Calculated?
The standard trading fee for BingX perpetual contracts is 0.02% for Makers (adding liquidity) and 0.05% for Takers (removing liquidity) for a VIP0 user.
Fee = Fee Rate * Position Value
Let's assume Bitcoin is at $50,000, and you use 5,000 USDT principal with 100x leverage to open a long position.
- Your market order opening fee would be: 5,000 100 0.05% = 250 USDT.
- Your limit order opening fee would be: 5,000 100 0.02% = 100 USDT.
Remember, for perpetual contracts, a similar fee is also charged when you close the position.
BingX VIP Perpetual Contract Fees
To save on fees, you can achieve VIP status on BingX, which offers progressively lower trading fees based on your 30-day trading volume and asset balance.
| BingX VIP Level | Contract Trading Volume Threshold (30-day累计 USDT) | Previous Day's Asset Balance (USDT) | Maker Fee Rate | Taker Fee Rate |
|---|---|---|---|---|
| Regular User | — | — | 0.0200% | 0.0500% |
| VIP 1 | ≥ 10,000,000 | ≥ 50,000 | 0.0140% | 0.0400% |
| VIP 2 | ≥ 20,000,000 | ≥ 200,000 | 0.0120% | 0.0375% |
| VIP 3 | ≥ 50,000,000 | ≥ 1,000,000 | 0.0100% | 0.0350% |
What Leverage Can You Use on BingX?
BingX contracts support high leverage, typically ranging from 5x to 150x. However, high leverage also signifies high risk. A mere 5% price move against your position could lead to liquidation. Consider this example:
Assuming Bitcoin is at $60,000 and you use 500 USDT as margin to open a long contract. If the market price drops by 5%, here's the outcome using different leverage multiples.
| Leverage | Position Value (USD) | Equivalent BTC | Value After -5% (USD) | Loss (USD) | Remaining Margin (USD) | Liquidated? |
|---|---|---|---|---|---|---|
| 5x | 2,500 | 0.04167 | 2,375 | 125 | 375 | No |
| 20x | 10,000 | 0.16667 | 9,500 | 500 | 0 | Yes |
- With 5x leverage, a 5% price drop reduces the position value to $2,375**, causing a **$125 loss. Your remaining margin is $375, so you avoid liquidation.
- With 20x leverage, the same 5% drop reduces the value to $9,500**, wiping out your entire **$500 initial margin and triggering automatic liquidation.
In summary, while high leverage can amplify potential returns, it equally magnifies risks, especially in volatile markets. Lower leverage provides a crucial buffer against market swings. Always practice prudent risk management when setting your leverage.
BingX Futures Tutorial: A Step-by-Step Trading Guide
Step 1: Deposit Funds
After depositing funds into your BingX account, they reside in your Main (Spot) Account. To begin futures trading, you must transfer the desired amount from your Main Account to your Futures Account. Once the transfer is complete, you can access the futures trading interface.
Step 2: Set Your Margin Mode
- Cross Margin: The margin for all your futures trades is shared across a specific account (e.g., USDT-margined account). This means a significant loss in one position can affect others.
- Isolated Margin: The margin for each position is isolated and independent. A loss in one trade is limited to the allocated margin for that specific position, protecting your other balances.
Step 3: Set Your Leverage Level
Adjust the leverage multiplier before entering a trade. A higher leverage ratio means you can open a larger position with less capital, but it also significantly lowers the price threshold at which your position will be liquidated. Choose a leverage level that matches your strategy and risk tolerance.
Step 4: Placing an Order – Choose Your Order Type
BingX Perpetual Contract Order Types:
- Limit Order: Place an order to buy or sell at a specific price or better. Note: execution is not guaranteed if the market price doesn't reach your limit.
- Market Order: Execute a trade immediately at the current best available market price.
- Plan Order (Trigger Order): Set a trigger price. Once the market hits this price, a limit or market order is automatically placed.
- Trailing Stop Order: This order type follows the market price by a defined percentage or amount, helping to lock in profits if the price moves favorably and limit losses if it reverses.
- Post-Only: This order will only be placed as a Maker order (added to the order book), ensuring you receive the maker fee rebate.
BingX Standard Contract Order Types primarily include Market and Plan orders.
Step 5: Select Order Preference
- Quantity-Based Order: You specify the exact number of contracts or coins you wish to buy or sell (e.g., 0.1 BTC).
- Value-Based Order: You specify the total nominal value of the position you want to open in quote currency (e.g., USDT). The system calculates the required quantity based on this value and your set leverage.
Example: You want to go long on 1 BTC at $60,000 using 600 USDT with 100x leverage.
- Using Quantity-based: Input "1" for the BTC amount.
- Using Value-based: Input "60000" for the USDT amount.
Step 6: Set Take-Profit and Stop-Loss
While you can set these after opening a position, it is highly advisable to set a stop-loss before opening the trade. This crucial risk management tool pre-defines the maximum loss you are willing to accept, preventing uncontrolled losses if you cannot monitor the market.
Step 7: Closing the Position for Profit
If you set take-profit or stop-loss conditions, your position will close automatically when those conditions are met. For manual closing, navigate to your "Current Positions" page, where you can specify the amount to close and the exit price.
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BingX Tutorial: Practice with Demo Trading
If you are unfamiliar with futures trading, it's highly recommended to start with BingX's demo trading feature. The demo provides VST (Virtual USDT), which has the same value as USDT but is not real money. Therefore, whether your trades are profitable or not, your real assets remain unaffected.
In the USDT-margined perpetual contract demo, you can practice going long or short to simulate real trading scenarios. The standard contract demo allows you to use VST to open and close positions, mimicking actual operations. This practice mode helps beginners familiarize themselves with the trading flow and improve their skills. If you incur losses in the demo, you can typically re-apply for more VST every 7 days to continue practicing.
Frequently Asked Questions
Q: Is BingX a safe and legal exchange?
A: BingX is a legally compliant exchange with a global presence. It is headquartered in Singapore and has offices in multiple jurisdictions. It serves users in over 60 countries and holds various regulatory licenses, including in the EU and Australia. Always ensure you are using the official website and beware of phishing scams.
Q: What is the main risk of futures trading?
A: The primary risk is liquidation, which occurs when your losses exhaust the margin allocated to your position. Using high leverage dramatically increases this risk, as even small market movements against your position can lead to a total loss of your invested margin.
Q: Should a beginner start with Standard or Perpetual Contracts?
A: Beginners should strongly consider starting with Standard Contracts. Their simplified, independent order management and inherent isolation of risk for each trade make them easier to understand and manage while learning the basics of leverage and futures.
Q: What does 'Maker' and 'Taker' mean in fee structures?
A: A 'Maker' adds liquidity to the order book by placing a limit order that isn't immediately matched. A 'Taker' removes liquidity by placing an order that is immediately matched against an existing order. Exchanges typically charge lower fees to Makers to incentivize providing liquidity.
Q: How often are funding rates applied?
A: For perpetual contracts, funding rates are typically exchanged between long and short traders every 8 hours. This mechanism helps tether the contract price to the spot market price. The rate can be positive (shorts pay longs) or negative (longs pay shorts).
Q: Can I practice trading without risking real money?
A: Yes, absolutely. BingX offers a demo trading feature funded with virtual currency (VST). This allows you to test strategies, learn the platform's interface, and understand how leverage works without any financial risk.