Reverse Position Function

When holding a long or short position, clicking the “Reverse Position” button will prompt the system to:

1. Close your current position at the best available market price, and

2. Open a new position of equal size in the opposite direction at the best available market price.

⚠️ Note: If the reversed position would exceed the maximum allowable position size, the system will not execute the new position.

---

Contract Types: Inverse vs. Direct

The platform offers perpetual contracts in two forms: inverse contracts and direct contracts, each with distinct settlement methods.

Inverse Contracts

• Quoted in USD, but settled in the base asset (e.g., BTC, ETH).

• Each contract has a fixed value of 1 USD.

• Profit and loss are realized in the underlying cryptocurrency.

Direct Contracts

• Quoted and settled in USDT.

• The contract value varies depending on the currency.

• Suitable for users who prefer to trade using a stablecoin margin.

---

Key Features of Perpetual Contracts

• No Expiry Date: Positions can be held indefinitely without expiration or settlement dates.

• Funding Cost Mechanism:

  A funding fee is exchanged periodically between long and short positions to keep the contract price aligned with the spot market price.

• Mark Price:

  A fair price reference used to calculate unrealized profit and loss and to trigger liquidation events. This helps reduce unnecessary liquidations caused by short-term price volatility.