Pintu Futures is a Pintu feature that lets you trade perpetual contracts. Pintu Futures lets you capitalize on bullish or bearish markets by opening long and short positions.
With Pintu Futures, you can boost your profit potential with leverage up to 25x.
To understand perpetual trading, we first need to understand the concept of derivatives — financial products whose value is based on another asset, in this case crypto assets.
In traditional derivative products like futures contracts (expiry futures), every contract has an expiration date. A perpetual contract is a special type of futures contract because it has no expiration date — meaning traders can hold their buy/sell position for as long as they want.
A contract is a legal agreement to buy or sell a specific commodity asset, at a predetermined price at a specific time — known as a futures contract.
Meanwhile, a contract not tied to a specific time is known as a perpetuals contract.
Long is a position opened when you buy a crypto asset believing its price will rise. When the price rises, you can sell it for profit.
Short is the opposite of long — you open a position expecting the price to fall, so you can still profit when the crypto’s price drops.
Entry price is the asset’s price when you open a long/short position.
Mark price is the price reference used to calculate profit/loss valuation and risk management in perpetual trading. Mark price comes from a weighted average of index prices from global crypto exchanges, adjusted for funding.
Liquidation price is the price point where the exchange will liquidate your position to prevent deeper losses. Before reaching this point, the exchange will warn you via a margin call, so you can manually close your position or add funds.
Funding rate is a mechanism that determines the funding level for perpetual futures, since there’s no expiration date. Funding rate ensures the perpetual contract price aligns with the index price, preventing long-term price divergence.
What are Funding & Settlements?
A funding settlement is a periodic payment between long and short position holders based on the applicable funding rate.
Settlement happens every 8 hours, at 07:00, 15:00, and 23:00 WIB. If the funding rate is positive, long traders pay short traders. If negative, short traders pay long traders.
You only pay/receive funding if you have an open position when settlement occurs. If you close your position before settlement, you won’t pay or receive funding.
What’s the Funding Rate at Pintu Futures?
It’s dynamic, following market conditions and demand for a given crypto. Check the current rate on each pair contract’s trading page, under the “Funding” menu.
Market close is an instruction to close a position at the best available price in the order book, in real time.
Limit close is an instruction to automatically close a position once the asset reaches a predetermined target price.