Home Bitcoin exchanges – Accrual of variation margin in perpetual futures

exchanges – Accrual of variation margin in perpetual futures

exchanges – Accrual of variation margin in perpetual futures


I’m attempting to determine the construction of perpetual futures utilizing the instance of the BTC USDT pair. I believe I perceive how this instrument theoretically works. Nonetheless, in observe, there have been nuances that I hadn’t even thought of. And so they confuse me.

To determine it out, I arrange an account for mock buying and selling on Binance. I longed 0.01 BTC/USDT perpetual futures with x1 leverage (On Binance this implies no leverage).

Based mostly on the speculation, funding charges must be paid 3 times a day (00:00, 08:00 and 16:00 UTC): if the funding charge is constructive, then longs pay shorts and vice versa.

Nonetheless, on this demo mode, I additionally acquired an inscription within the decrease proper nook with fields “Margin ratio”, “Maintence Margin” and “Margin Steadiness” (though I don’t take leverage on this place, and I would not have different positions). And these numbers change somewhat bit (lower than 100$) on a regular basis.

As well as, on this mock buying and selling regime, I’ve an quantity left after shopping for futures – and this quantity additionally adjustments barely each few seconds (though funding is paid solely as soon as each 8 hours).

On this regard, I’ve a query in regards to the association of perpetual futures (with out leverage!). Can adjustments within the steadiness of the quantities on my demo account be associated to the revaluation of the contract (analogous to mark-to-market)? Or, for instance, in perpetual futures, along with funding charges, a variation margin can be used?

Please assist me determine these observe issues out.



Please enter your comment!
Please enter your name here