1 GX.COM Index contract & All currency contract
(1). Index contract:
GX.COM innovation index contract is the digital asset derivative launched by GX.COM, and it can’t be delivered, adopts the fair index price, in order to make users better experience index contract trading, completely eradicate the possible human intervention, directional forced liquidation and other bad behavior in the industry. We have innovatively designed the index contract products. The index takes the spot prices of six world-famous exchanges (Binance, Huobi, Okex, Bitfinex, Hitbtc, Poloniex), and calculates the weighted average price of different platforms and different weights and take it as the index price, so as to ensure that the index contract market is consistent with the global spot market index to avoid the forced liquidation caused by lack of liquidity or market manipulation. The index price will not be maliciously manipulated, and enough depth can also ensure a good index contract experience for users. at present GX.COM index contracts support up to 100 x leverage.
Due to GX.COM Index contract is an innovative investment product, which brings both higher profit margin and higher risk and it is more professional than spot transaction. Please make rational judgment and prudent investment decision. If you have never tried contract trading before, we suggest you go to the simulation order of index contract for contract trading experience first. We have specially prepared EXT rewards and plenty of activities of firm and simulation order for you.
(2). All currency contract
All currency contract is another innovative product of GX.COM following the index contract, it is a brand-new contract trading mode, which is based on the BTC / USDT index price and uses other digital currencies as margin for trading and settlement of profit and loss.
e.g, when the index price of BTC / USDT is 8000, and using OAX as digital asset, using 100x leverage, and invest 100 OAX for going long. When the index price of BTC / USDT rises to 9000 then close the position and you can make a profit of 1250 OAX. (profit and loss = (9000-8000) / 8000 * 100 * 100)
- Like the index contract, it adopts the index price of BTC / USDT as the object, whichcan't be manipulated, and it is fair and more stable;
2) The pioneering transaction mode which can be traded with the digital currencies other than USDT and BTC, so that more currencies can participate in contract transactions, greatly improved the liquidity and use value of uncommon currencies.
(3). Perpetual swap
It is another financial derivative launched by GX.COM according to market demand, which is similar to the traditional futures contract, but there are some differences. The perpetual swap has no due delivery date and make the transaction price of the perpetual swap get close to the corresponding spot price by marking the spot price.
- Simulation trading of GX.COM index contract
EXT is the experience token of GX.COM index contract,which is based on the token issued by ERC-20. In the index contract simulation oder, EXT anchors the value of USDT, namely, 1EXT = 1USDT, which simulates the real trading environment based on 1:1. As an equity token of simulation trading for users' experiencing of index contract, EXT can only be used for simulation contract transaction instead of withdrawal and increase by transferring. After meeting the conditions, you can also exchange for physical gifts.
The simulation trading market data of index contract is synchronized with the BTC / USDT market data in the contract firm order, and EXT is used as the contract margin in the simulation trading.
3、 Rate description
Trading handling charge (closing fee): opening quantity (keep 3 decimal places) * trading handling charge rate
Opening (holding position) quantity = margin * leverage multiple
Opening handling charge: none
Handling charge rate of all currency types: 0.06%
e.g: Xiaoming goes long when the BTC is 9000 USDT, the margin is 100 usdt, 100 x leverage. When BTC rose to 9156 USDT, Xiaoming closed positions. At this time, trading handling charge (closing fee) = opening quantity (keep 3 decimal places) * trading handling charge rate = 100 * 100 / 9000 * 9156 USDT * 0.0006 = 6.1033896 USDT
Transaction time: 7 * 24
Min margin per order: 1 USDT
Max holding orders: 10
Contract yield formula:
(closing price - opening price) / closing price * margin * leverage multiple - handling charge (handling charge = margin * leverage multiple * 0.06%)
The calculation formula of forced liquidation is as follows:
Forced liquidation price of going long = opening price * (1 - risk ratio 80% / leverage multiple)
Forced liquidation price of short-selling = opening price * (1 + risk ratio 80% / leverage multiple )
Risk rate 80%
The formula of forced liquidation price after additional margin is as follows:
Forced liquidation price of going long = opening price * [1 - risk rate 80% * holding margin (additional margin) / opening value (opening margin * leverage multiple)]
Forced liquidation price of short-selling = opening price * [1 + risk rate 80% * holding margin (additional margin) / (opening margin * leverage multiple)]
4、 Calculation formula of index contract
The index takes the spot prices of six world-famous exchanges (Binance, Huobi, Okex, Bitfinex, Hitbtc, Poloniex)
5、 Index contract terms
(1). What is the margin system?
Which refers to that when the user conducts index contract trading, the user has no need to pay the total amount of index contract and just needs to freeze a certain proportion of margin based on the total amount of index contract to complete the transaction.
Xiaoming has 100 USDT, assuming that the current market price of BTC is 10,000 USDT. If Xiaoming conducts trading in the spot market by now, he can obtain the BTC which is worth 100 USDT, namely 0.01 BTC.
If Xiaoming conducts trading of index contract in GX.COM , with 100 USDT as margin and 10x leverage, he can obtain the BTC which is worth 1000 USDT, namely 0.1 BTC. Similarly, if Xiaoming adopts 100x leverage, he can obtain a BTC which is worth 10,000 USDT, namely, 1 BTC.
(2). What are the "opening positions", "holding positions" and "closing positions"?
Opening positions: also known as building positions, especially used for the trading of index contract, contract trading is to issue order, called opening positions.
Holding positions: keep holding positions after placed an order, namely, holding positions.
Closing positions: also can be called clearing positions, namely, all or part of the opening positions will be sold and no longer hold it.
(3). What are the going long and short-selling
If you expect the market will go up, then you has gone long. If the market really goes up, you will make a profit, otherwise you will lose money.
Short-selling is the opposite.
Under the same index contract, users can buy orders in different directions at the same time, namely, they can conduct going long and short-selling at the same time.
Take BTC / USDT index contract (USDT settlement) as an example
Going long: that is, the price of BTC is expected to rise. Use USDT as margin for going long of BTC. As long as the price of BTC is higher than the price you bought in the future, you will make a profit.
Short-selling: that is, the price of BTC is expected to fall. Use USDT as margin for short-selling of BTC. As long as the price of BTC is lower than the price you sold in the future, you will make a profit.
(4). What is the leverage
Leverage allows larger scale of transactions under the same principal. Leverage can amplify returns and risks. GX.COM Index contracts provide up to 100x leverage.
Take index contracts of BTC / USDT as the example
The index contracts of BTC / USDT provide up to 100x leverage. With 1 USDT as margin, you can conduct the going long and short-selling of the BTC which is worth 100 USDT.
Taking 20x leverage as an example, in order to explain to you more intuitive, the following examples do not consider the handling fee and overnight fee:
Going long: if the price of BTC rise by 1% in the future, your profit will increase by 20% (if the direction is right, the profit will be magnified by 20 times); if the price of BTC fall by 1% in the future, your loss will be 20% (if the direction is wrong, the loss will be magnified by 20 times).
Short-selling: if the price of BTC fall by 1% in the future , and your profit will increase by 20% (you will still make profit even it fell, and the profit will be magnified by 20 times); if the price of BTC rise by 1% in the future, and your loss will be 20% (wrong direction, loss will be magnified by 20 times).
High leverage, high profit and high risk, please choose the leverage multiple prudently.
- Types of contracts
Delivery contract: futures delivery refers to that when the futures contract expires, the two trading parties settle the expired open contract through the transfer of the commodity ownership contained in the futures contract. For example, the BTC quarterly contract on Huobi global site is the delivery contract, and the system will force the closing of positions when it expired.
Perpetual swap: a derivative which is similar to leveraged spot transaction, is a digital currency contract product settled in BTC, USDT and other currencies. Investors can obtain the profit of the price rising of digital currency by going long, or obtain the profit of the price falling of digital currency by short-selling. Compared with delivery contract, the biggest difference is that there is no delivery date for perpetual swap. For example, there are perpetual contracts of currency standard on Okex.
GX.COM index contract: is the innovative digital asset derivative launched by GX.COM, it will never be delivered, it took the leverage advantage of contract products, and the platform itself does not produce prices. The index takes the spot prices of six world-famous exchanges, and calculates the weighted average price of different weights of different platforms. The users and liquidity providers quote based on the index price and the system carries out price matching.
Another advantage of GX.COM index contract is that the stable version of USDT is used as the settlement currency. As long as users hold USDT, they can experience all the trading pairs of index contract which used USDT as the settlement currency. And GX.COM also provides OTC transactions and a channel for two-way exchange of fiat currency into USDT. This allows users to experience the charm of contract trading at a very low threshold. If the delivery contract is called contract 1.0 and the perpetual contract is called contract 2.0, then GX.COM index contract is called contract 3.0. Concise but not simple, this is the contract trading that everyone can play here!
- What are stable coincontract and currency standard contract?
A stable coin contract is also called the forward contract. For example, if you use USDT or fiat currency to make a contract transaction against BTC, take USDT as an example. That is to say, as long as you hold USDT, you can directly conduct contract trading in multiple mainstream currencies. On the contrary, holding multiple currencies for corresponding trading is called currency standard contract, also known as reverse contract. Reverse contract means that if you want to conduct Bitcoin contract trading, you must use Bitcoin as the standard currency. If it is Ethereum contract trading, you must hold Ethereum. Currency standard contract is more suitable for users certain contract experience, while stable coin contract is more suitable for inexperienced or new users of contract trading. Currently, the index contract launched by GX.COM is the stable coin contract with USDT as the settlement currency.
- What is forcedliquidation
After the user opened position by going long or short-selling, the forced price of the order will be displayed on the position page. The forced price is an indicator to measure the user's asset risk. When the index price reaches the forced price, your position will be forced to close by the system.
Xiaoming opened his position with 10x leverage at 1 BTC = 7340.62 USDT and conducted short-selling of 2 BTC. As shown in the figure, the forced price is 7927.87 USDT. Namely, when the BTC index price reaches 7927.87 USDT, Xiaoming's position will be forced to close by the system.
- What is the stop-limit
"Stop-limit" order means that you need to set "trigger price" in advance. When the latest price reaches the trigger price, the closing operation will be carried out to help you keep profits or reduce losses. At present, the platform supports the operation of "stop-limit" according to the amount or profit.
For example, Xiaoming conducted going long at 6800 USDT, then set the price to stop profit at 7100 USDT and stop loss at 6700 USDT. When the index price reaches 7100 USDT, the system will close Xiaoming's position. Similarly, when it reaches 6700 USDT, the position will also be closed.
- What is the "auto margin call"
Once the function of "auto margin call" is enabled, when the contract order reaches the forced price, the available funds in your contract account will be transferred to the margin of the order first, until the profit and loss ratio is reduced to - 50%. You can also manually reduce the additional margin. When the contract order reaches the forced price again, the system will repeat the above operation and transfer the available funds of the contract account to the margin of the order. When the available funds in your contract account are insufficient, all the available funds will be added as the margin of the order.
The function of "auto margin call" can be turned on and off at any time, and there are corresponding switches for each order.
The function of "auto margin call" does not conflict with stop loss. It will only be triggered when the contract index price reaches the forced price of the order.
The function of "automatic margin call" will reduce the probability of your forced liquidation, but in extreme cases, it may result in the loss of all available funds in your contract account. Please be careful and conduct operation prudently.