OKX is excited to announce the launch of the PENGUUSDT perpetual contract. This new derivative product offers traders a flexible way to gain exposure to the PENGU token using USDT as collateral. This guide provides a comprehensive overview of the contract’s specifications, key features, and important details for effective trading.
Key Contract Specifications
The PENGUUSDT perpetual contract is designed with specific parameters to ensure efficient and transparent trading. Below are the core details every trader should understand before participating.
| Contract Element | Details |
|---|---|
| Underlying | PENGU/USDT Index |
| Settlement Currency | USDT |
| Face Value | 100 |
| Price Quotation | Quoted as the USDT price for 1 PENGU |
| Minimum Price Movement (Tick Size) | 0.000001 |
| Leverage | 0.01x to 50x |
| Funding Fee | Calculated as: Clamp(MA([(Best Bid + Best Ask)/2 – Spot Index Price] / Spot Index Price – Interest), -1.5%, 1.5%), where Interest = 0. Fees are paid and received on a periodic basis. |
| Trading Hours | 24/7 |
Important Initial Launch Notes
New contract listings can experience significant premium volatility. To ensure fair and reasonable funding fee calculations during this initial phase, a special mechanism will be in effect.
- From Launch until 00:00 (UTC+8) on Dec 18, 2024: The maximum funding rate cap will be set at 0.03%.
- After 00:00 (UTC+8) on Dec 18, 2024: The maximum funding rate cap will return to the standard 1.5%.
Please note that the first actual collection of funding fees under this adjusted schedule will occur at 08:00 (UTC+8) on December 18, 2024.
Apart from these initial funding rate adjustments, all other standard trading rules for the PENGUUSDT contract apply, including limit order parameters, which are consistent with other perpetual contracts on the platform. For a deep dive into the mechanics of how these contracts work, you can 👉 explore the perpetual swap guide.
How to Start Trading PENGUUSDT Perpetual Contracts
The PENGUUSDT perpetual contract is accessible across all OKX platforms, providing a seamless trading experience whether you are at your desk or on the move.
- Web Trader: Log in to your OKX account on the official website and navigate to the 'Derivatives' trading section.
- Mobile App: Access the markets and execute trades directly from the OKX app, available for iOS and Android devices.
- API: For algorithmic and high-frequency traders, the contract is fully supported through the OKX API, allowing for automated trading strategies.
Understanding Perpetual Contract Fundamentals
Perpetual contracts are a type of derivative that allows traders to speculate on the future price of an asset without an expiration date. Unlike traditional futures, they use a funding fee mechanism to tether the contract price to the underlying spot index.
The funding fee is periodically exchanged between long and short position holders. If the fee is positive, longs pay shorts; if negative, shorts pay longs. This system helps to maintain balance between the contract price and the spot market value. To master the use of leverage and funding mechanisms, consider to 👉 get advanced trading methods.
Frequently Asked Questions
When did the PENGUUSDT perpetual contract launch?
The contract was officially launched on December 17, 2024, at 23:55 (UTC+8). It is available for trading 24/7 on the OKX web platform, mobile app, and via API.
What is the funding fee and how is it calculated for PENGU?
The funding fee is a mechanism to align the perpetual contract price with the spot index. It is calculated using a specific formula based on the difference between the contract's mid-price and the spot index price. During the first few hours after launch, the maximum rate was temporarily capped at 0.03% for stability.
What leverage can I use when trading PENGU?
OKX offers flexible leverage from 0.01x up to 50x for the PENGUUSDT perpetual contract. It is crucial to use leverage carefully, as it amplifies both potential profits and losses. Always employ robust risk management strategies.
Is there a expiration date for this contract?
No, as a perpetual swap, this contract does not have an expiry date. You can hold a position for as long as you maintain sufficient margin and your position isn't liquidated.
What are the risks involved in trading perpetual contracts?
The primary risks include high volatility, liquidation risk if the market moves against your leveraged position, and funding cost uncertainty. Traders should thoroughly understand these risks and never invest more than they can afford to lose.