TruBit Pro Perpetual Contract Overview

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TruBit Pro is one of the first trading platforms in the industry to provide Perpetual Contract trading services. Perpetual Contract, also known as the Quanto Swap, allows users to hold multiple digital assets and use them as margin to trade various derivatives contracts on the platform.

Outstanding Highlights

1. Hold any digital asset, trade all kinds of contracts, TruBit Pro Perpetual Contract realizes cross-variety transactions on the basis of perpetual contracts, eliminating the process and costs of manually trade in-out different digital assets; 2. TruBit Pro index price derived based on 5 benchmark spot exchanges, which provides significant value in technical analysis by removing price data noises. 3. Trading fees on TruBit Pro are at a relatively low level in the industry, which helps to maximize the traders' profit 4. TruBit Pro's well-developed charts provide a large number of free indicators, show your orders on the chart, its unique settings stand out from the crowd; 5. TruBit Pro adopts double-risk-limits to restrict the contract size cap and the overall account activities, hence reduce the occurrence of forced liquidation under extreme market conditions. 6. Accept 30+ fiat deposit and withdraw via third parties, debit and credit card. In Mexico, TruBit also accepts bank transfers for deposit and withdraw. More countries are coming soon. 7. 40+ selections of contracts. 8. Support customize 'Drag and Drop' on Contract trading page, which allows users to customize the page components and layout according to their preferences.

Chart: Various contracts

Inverse Contract

First-generation products are standard in crypto exchanges.

General Contract

Second generation products are only found in select crypto exchanges.

Hybrid Contract

The third generation product, perpetual contract, is the general trading mode among the major cryptocurrency exchanges.

► Comparison of three contract types

TruBit Pro Perpetual Contract Introduction

Advantages

The perpetual contract provides traders with greater flexibility and makes it easier for traders who do not hold BTC pairs to trade multiple contracts simultaneously. It also supports USDT currency as a margin asset to meet the needs of traders who adapt to the USD standard and thus earn more profit.

► Traditional Contract Process VS TruBit Pro's Perpetual Contract Process

Example: A trader holds BTC and is optimistic about the price of BTC over the long

term, but recently ETH has been experiencing positive momentum.

Like BitMEX's ETH/USD perpetual contract, TruBit Pro's perpetual contract is a dual-currency trading product with conversions between three digital assets.

The image below shows that the ETH/USDT perpetual contract takes USDT as its base and settles in one of those three currencies: BTC/ETH/USDT. Users can also trade five contracts simultaneously if they have enough settlement currencies.

Leverage

In margin trading, traders can effectively trade with a notional amount, investing a relatively small capital as collateral to multiply profits and potential risks.

Maximum leverage available of TruBit Pro Perpetual Contracts

Well-developed exchanges in the sector have structured systems for risk control. In the case of a high market fluctuation (such as the Black Thursday crisis), leveraged positions may face an unexpectedly large drawdown due to inadequate risk control. Therefore, we recommend that traders set the appropriate leverage according to their risk appetite and combine the exchange's risk control mechanism to establish a stop profit or loss position in advance to avoid unnecessary losses.

Product Intro

Index Price Mechanism

"Close to the average spot price, avoids

possible market manipulation activities"

In a highly volatile market, a highly leveraged position can face liquidation if the required margin is insufficient in time. Most exchanges no longer use the last trading price as the basis for calculating the liquidation but instead use the "index price" of the spot market to avoid a "flash crash" in large liquidations. To avoid manipulative market activities and to limit unnecessarily forced settlements when the market fluctuates significantly concerning the overall spot price, the index price is calculated by taking the average value of the spot prices of several exchanges.

The TruBit Pro index price is taken from 5 major spot exchanges and applies dynamic algorithms to eliminate abnormal data sources in real-time. Data standardization provides a rich and reliable source of indices for contract trading.

► Index Price Comparison among Exchanges

Rate Comparison

"Same Maker Rates, but lower Taker Rates"

Maker and taker fees are crucial elements to consider when executing an operation. The lower the commission, the greater the attraction for users. In a transaction, Maker (who provides the liquidity) and Taker (who takes the order). Since the Maker is the party that provides liquidity and the Taker takes it, the Taker's fee is usually higher than that of the Maker.

Perpetual Contract Rates in Different Exchanges

As can be seen in the chart above, 0.02% is the average Maker Rate, while the Taker Rate varies from exchange to exchange. Among them, TruBit Pro is at the lowest level.

Funding Rate

The price of the Perpetual Contract calculates from the spot price by adding the funding rate, also known as the interest rate. As in almost all exchanges, the funding payment interval in TruBit Pro is 8 hours, i.e., funding charging is three times a day. When the user holds a position at the mark time, he has to pay (receive) the fees to (from) the counterparty in the trade. If the user does not hold any position at that time, he does not have to make (receive) payment.

Risk Limits

As the market is often volatile, it is common for some investors with huge leveraged positions to face forced liquidation, affecting others and causing market-wide self-de-leverage. To protect these users from such problems, TruBit Pro uses a double risk limit, which limits both the specific Contract and the target account.

► Risk Limits on TruBit Pro Perpetual Contract

► Risk Limits of TruBit Pro Settlement Account

Based on this comprehensive risk control measure, when placing an order, the TruBit Pro system will check the risk limit of the contract and the settlement account. If the risk limit or the settlement account crosses the safe area, TruBit Pro will not allow users to place the order.

The double risk limit method limits accounts for high-leverage positions. It fundamentally solves the problem of "flash crashes" caused by large-scale forced liquidation, which helps to raise price stability by eliminating noises in the market.

Platform

Order Type

TruBit Pro provides different order placement methods; traders can place orders at market or limit prices. In addition, some advanced order types exist, such as post only, stop limit, stop market, etc. All these function designed to meet different needs in trading:

Market Order

A market order is an immediate order to buy or sell assets at the best price available in the market. In TruBit Pro, you can easily find the "Market" option in the order panel and then place a market order.

Limit Order

For a limit order, you can require a specific target price. We execute the order only when this limit price reaches out, or a better price exists.

Post Only

When you select [Post Only] and place an order, it will not execute immediately with existing orders in the order book. It will exist as a Maker order in the market, and when completed, the trader will pay the trading fee under the maker rate, not the taker rate, which provides liquidity to the market and allows users to trade at a lower rate.

Taker Rate: 0.04%

Maker Rate: 0.02%

Stop Limit

A stop limit order is a limit order with trigger price preset, here TruBit Pro provides three price options: Last Price, Mark Price and Index Price. Users can choose one and then enter the trigger price. When this price is reached, the system will execute the limit order according to the limit price that user sets.

Stop Market

The stop market order is almost the same as the stop limit order, only the transaction price is based on the current market price, not the limit price.

Margin Mode

Isolated Margin

"Restricts the margin value assigned to each position"

TruBit Pro's isolated margin mode separates the initial margin and maintenance margin from the trader's available funds. If the margin of a position falls below the Maintenance Margin level, the system will liquidate your position, and in this case, the maximum loss will close to the total margin of this position. However, it is still possible to increase or decrease the position margin.

Cross Margin

"Covers losses or profits between contracts"

In TruBit Pro's cross-margin mode, if margin assets on different positions are equal, unrealized profits can offset unrealized losses and serve as a margin for opening new positions.

Position Mode

One-Way Mode

In One-Way Mode, users can only hold positions in one direction (buy or sell) under a contract.

Hedge Mode

In Hedge Mode, users can simultaneously hold positions in both long and short directions under the same contract to achieve risk hedging.

►How to change the position mode in TruBit Pro

Liquidation Settlement

Regular Settlement

Traders can freely choose market or limit order. In the case of the limit order, the position will be closed at the specified limit price, while the market order will be closed at the current market price. Other conditional orders, such as stop limits and stop markets, still require setting a trigger price. Once the condition is determined, the system will execute the order automatically under the condition.

Quick Settlement

TruBit Pro offers an easy and fast settlement mode for both mobile and PC applications. Taking the web page interface as an example, traders can choose to close the position quickly by clicking the 'x' button on the candlestick chart.

► TruBit Pro quick liquidation at market price (Candlestick Chart)

Take-profit and Stop-loss

Traders can also open take-profit and stop-loss positions through the advanced order, thus avoiding the need to watch the market overnight. In a high-volatility market, traders can activate take-profit/stop-loss, and the system will automatically close the position to avoid unnecessary losses. The take-profit/stop-loss setting will take effect automatically when positions are active.

Take-profit

For orders in the "long" direction, the take-profit price must be higher than the initial price, and in the case of the "short" direction, the take-profit price must be lower than the initial price.

Stop-loss

For orders in the "long" direction, the stop loss price must be lower than the initial price, and in the case of the "short" direction, the stop loss price must be higher than the initial price.

If the trader does not activate the take-profit and stop-loss when opening the position, they can set it when holding positions (modifications are also allowed). Entering the same value or not filling in the field will be considered an invalid trade. When the parameters have been filled in correctly, the new parameters will overwrite the previous ones.

TruBit Pro's different order types can meet the needs of varying trading situations. One-click setup frees the trader from constantly monitoring the market, dramatically limits losses, and avoids forced liquidation.

► Activate take-profit/stop-loss when opening a position

► Set take-profit/stop-loss when holding a position

Stop-loss type

The stop-loss at market price takes effect once the order is executed and is triggered when the market price reaches the predetermined trigger price.

However, the set range must fulfill the trailing stop-loss. When the price moves in a favorable direction, the trailing stop moves by a certain distance. The trailing stop will close a position at the market price when the price moves a certain distance in the opposite direction. If the price moves in the trader's favor, profits are locked by keeping the position open and continuous profit-taking.

For example, if the trader sets the range at 1000, and the best price for the duration of the position is 9000. The trigger price to close the position will be 9000 - 1000 = 8000.

► Stop Market and Trailing Stop

Take-profit type

The take-profit at market price takes effect once the order has been executed and is activated when the market price reaches the predetermined activation price.

As for the take-profit at the limit price, the system will create a limit order according to the previously set take-profit price and then close the position when this limit price is reached. ► Take-profit Limit and Take-profit Market

Trading Interface

TruBit Pro offers a complete package of technical indicators, drawing tools, etc. Traders can choose and use the appropriate tools based on their strategies and trading habits.

"TruBit Pro's developed charting seeks to strike the

right balance between professionalism and ease of use"

► TruBit Pro Main Interface (PC)

► VPVR application on TruBit Pro

VPVR is based on the price-weighted chip distribution map, which helps to determine the level of market resistance or support from the perspective of the trading volume. VPVR is a premium indicator in professional market data software such as TradingView, Aicoin, etc. In TruBit Pro, it is free to use.

► Long/Short Ratio in TruBit Pro (App)

At the same time, TruBit Pro has integrated long/short ratio analysis into the order placement interface. Traders can choose to display the ratio of long and short orders in different periods to help determine the market trend.