Lite Futures Introduction

Overview

Lite Futures is a derivative financial product tailored for beginners, featuring easy operation that makes futures trading as accessible as spot trading. Its simplicity and swiftness have made it a top choice among market participants.

Isolated-Margin Mode

Lite Futures operates under an isolated margin mode, ensuring that the position risks in Lite Futures are entirely segregated from those in different trading products like perpetual futures. Even in the event of a liquidation in the trading account, it won't impact the positions in Lite Futures, aiding users in superior risk management.

Trading Fees

There are no trading fees for opening and closing positions in Lite Futures, allowing users to trade at any time without concern for additional costs from frequent trading. This characteristic also positions Lite Futures as an economically efficient trading method.

Position Holding Fee

To mitigate potential risks from extended holding periods or excessively large positions, the system charges overnight position holding fees to users holding positions at 00:00 (UTC). The calculation method for the position holding fee is: Position Holding Fee = Position Quantity * Position Holding Fee Rate. Different fee rates may apply to long and short positions, encouraging users to manage their positions more prudently. 

Simplified Market Data

Lite Futures simplifies market data by displaying only the highest and lowest price trend lines, enabling users to easily track market trend changes and fluctuations. This helps users better understand market movements.

Quote-based Trading

To facilitate simpler and more convenient transactions, Lite Futures adopts a quote-based trading approach. Users need only input the trade quantity, and the system will automatically provide quotes for the transaction's price and cost. Once confirmed, the transaction can be swiftly and accurately completed, making the trading process as convenient as shopping while minimizing operational risks.

The multifaceted characteristics of Lite Futures make it an ideal financial tool, suitable not only for beginners but also meeting the demands of more experienced traders.

Terminology Explanation

0 Transaction Fees: Lite Futures do not charge any transaction fees, making it an economically efficient trading method.

Isolated Margin: Lite Futures operate under an isolated margin mode where the risk for each position is calculated independently and does not affect the overall risk of the trading account. This aids in effective risk management.

Daily Price Fluctuation: Daily price fluctuation refers to the percentage change in price from 00:00 (UTC) to the current time. This data assists in understanding recent market volatility.

Daily High Price: The daily high price refers to the asset's highest trading price from 00:00 (UTC) until the current time. This assists in tracking daily price fluctuations. 

Daily Low Price: The daily low price represents the asset's lowest trading price from 00:00 (UTC) until the current time. This is helpful in determining the price range in the market.

Single Maximum Purchase: This refers to the maximum quantity that can be traded in a single transaction. If your trade quantity exceeds this limit, you won't be able to complete the trade.

Maximum Position Holding: Maximum position holding refers to the maximum allowed position quantity in the fututes. If your position quantity exceeds this limit, you won't be able to open additional positions.

Position Holding Fee: The position holding fee is charged by the system at 00:00 (UTC) during position settlement if you hold a position. The specific calculation is: Position Holding Fee = Position Quantity * Fee Rate.

Position Liabilities: When engaging in leveraged trading, users can acquire larger positions at lower costs. Liabilities refer to the difference between cost and face value. This portion of funds is provided by the system to maintain positions during the holding period and is automatically returned to the system upon closing. Long position liabilities are negative values, while short position liabilities are positive. The specific calculation is: Long Position Liabilities = Initial Margin - Total Trading Amount, Short Position Liabilities = Initial Margin + Total Trading Amount.

Position Net Value: Position net value represents the effective value of the current position, including the principal amount and unrealized gains or losses. This is a reference value indicating the actual value you can obtain after closing all positions.

Liquidation Price: The liquidation price is a risk management tool where the trading platform automatically executes forced liquidation when your position's losses reach a certain level. The liquidation price is the trigger point for automatic closure of your position.

Market Value: The current market valuation of the existing position. Market value is typically determined based on market demand-supply dynamics and the latest trading price.