Futures Frading FAQ – VOOX

1.What is futures trading?

Perpetual futures are a type of futures contract that does not have an expiry or settlement date and can be held indefinitely. Users can go long (buy) if they expect the price to rise or short (sell) if they expect the price to fall, thereby profiting from price movements of digital assets.

2.What is the difference between Isolated Margin and Cross Margin?

Isolated Margin: The maximum loss is limited to the initial margin allocated to a specific position. If the position is liquidated, the system will not use the available balance to support it.
Cross Margin: The entire available balance in the account is used as margin to prevent liquidation. Realized profits from other positions can help cover losses. By default, all positions are set to Cross Margin.

3.What is contract size?

Contract size refers to a fixed unit of trade. For example, 1 Contract = 0.001 BTC.

4.What is leverage?

The platform supports up to 125x leverage. Leverage includes initial leverage and actual leverage:

Initial leverage is set by the user when opening a position.
Actual leverage changes in real time based on unrealized PnL.

5. How do I open and close futures positions?

Please refer to our futures trading guide: https://support.voox.com/hc/en-us/articles/10574401387663

6.What are positions, realized PnL, and unrealized PnL?

Position: The quantity of an asset held in an derivatives contract.
Realized PnL: Profit or loss from settled or closed positions.
Unrealized PnL: Estimated profit or loss based on the current mark price, excluding trading fees or funding fees.

7.How are trading fees calculated?

Trading fee = Position value × Fee rate Fees are charged when opening and closing positions.

8.What is going long (buy) and going short (sell)?

Going Long (Buy): Opening a bullish position. You profit if the price increases.
Going Short (Sell): Opening a bearish position. You profit if the price decreases.

9.What is closing a long or short position?

Closing a Long (Sell to Close): Selling the asset to close a long position.
Closing a Short (Buy to Close): Buying the asset to close a short position.

10.What is funding fee?

Since perpetual futures do not expire, funding fees are used to anchor the futures contract price to the spot market. Funding fee generally occurs every 8 hours, at UTC 04:00, 12:00, and 20:00.

Actual settlement time may vary by up to 20 seconds. Please refer to the actual deduction time for accurate information.
Only users who hold a position during the funding timestamp will pay or receive the funding fee.
If you close your position before the funding fee settlement time, no fee is charged or paid.

11.What is maintenance margin and maintenance margin rate?

Maintenance Margin: The minimum margin required to keep a position open.

Maintenance Margin=Position Value × Maintenance Margin Rate
Maintenance Margin Rate: Varies based on position size and risk tier. If the margin ratio falls below the maintenance margin rate, auto-Deleveraging or forced liquidation may occur.

12.Why was my position liquidated?

If the position margin falls below the maintenance margin requirement, the system will forcefully liquidate the position, resulting in the loss of the maintenance margin. It is recommended to use lower leverage and maintain sufficient margin to avoid liquidation risks.

13.Why was my order canceled?

Orders may be canceled due to the following reasons:

Manually canceled by the user.
Market orders had no matching counterparty.
All active orders are canceled after forced liquidation.
Close orders are canceled when no position exists.
Take-profit/stop-loss orders are batch canceled during forced liquidation.
Conditional orders will be automatically canceled if generated active orders lack sufficient margin.
Orders are canceled when the position is reduced via ADL.
During position reduction, if executed size is insufficient, remaining unfilled orders are canceled.
Orders are canceled when position size becomes zero or the position direction changes.
When holding a position and placing a reverse order, the matching engine may cancel orders due to inconsistencies between unfrozen orders and existing positions.

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