1. Lower Cost, Higher Profit
Hoo perpetual contract provide 1-100x leverage for trader to choose. They can also adjust their leverage level or margin amount even after opening a contract.
The high level of leverage means that traders can gain higher profit if they have a good control over their investment. It magnifies your profit in volatile market and improves your capital utilization rate. But please be aware that higher profit is accompanied with higher risks.
2. No Expiry Date
A perpetual contract does not have an expiry date, which means that traders can hold the position as long as they want.
For example, if a trader believes that the price of BTC will go up in the long term, he can long BTC perpetual contract and hold it and wouldn’t have to worry being liquidated when it is expired.
3. Anchored with Spot Market Price
Hoo adopts “Reasonable Price Mark” system to ensure that the contract market price is always anchored with spot market price so that the high leverage positions will not liquidated.
The reasonable price of Hoo perpetual contract is calculated based on the basis of funding fees:
Funding fee basis rate = funding fee rate * (time to next payment / time slots of funding fee)
Reasonable mark price = index price * (1+ funding fee basis rate)
The unrealized profit and loss, the price that triggered liquidation and the funding fees of users are all calculated by reasonable mark price. The goal of which is to improve the stability of contract market, ensure the justification of trading environment and avoid unnecessary liquidation in a volatile market.
Dec. 19, 2019