Get Ready for Futures Trading: The Next Frontier in OraiDEX

Oct 18, 20235 min read

OraiDEX, the pioneering decentralized exchange developed on Oraichain is committed to enriching users' DeFi (Decentralized Finance) experience, offering innovative trading solutions that empower users to make the most of their crypto assets. And the next step in this journey is Futures Trading, a cutting-edge feature that opens new horizons in the Oraichain ecosystem. In this latest episode of the #OraiSavvy series, we'll dive into the world of Futures Trading, unraveling its intricacies, exploring how it works, and inviting you to join the OraiDEX Futures Trading Beta Competition for a chance to reap rewards.

What is Perpetual Futures Trading?

Let's start at the beginning. Perpetual futures contracts allow you to speculate on an asset's price without an expiration date. Unlike conventional futures, perpetual futures positions can be held indefinitely without settling.

On OraiDEX, perpetual futures empower you to capitalize on price movements for as long as you want. You can profit whether the market goes up or down. Initially, perpetual futures trading will be enabled for the $ORAI/USDT pair. In the future, there will be more tokens coming soon for this feature.

Long and Short Positions

Traders can take two positions in futures trading - Long and Short. A long position is a bet that the asset's price will increase, while a short position bets on a price decrease.

Traders can choose the position that aligns with their market analysis and profit-making strategy. This flexibility is one of the factors that make Futures Trading on OraiDEX so enticing. It allows traders to play both sides of the market, providing opportunities for profit regardless of whether the asset's price is climbing or descending.

Understanding Margin and Leverage

Margin, in the context of futures trading, plays a vital role. It's the collateral deposited by traders to open and maintain a futures position. On OraiDEX, traders can use leverage up to 10x, magnifying their buying power. Leverage lets traders control more assets than the capital they initially deposited. For instance, with 10x leverage, you can open positions up to 10 times the size of your margin, potentially amplifying both gains and losses.

Now, let's delve a bit deeper. In futures trading, you'll come across two essential terms related to margin: Initial Margin and Maintenance Margin.

The Initial Margin is the minimum collateral needed to initiate a futures position. This serves as the initial 'down payment' to open the trade. The Maintenance Margin, on the other hand, is the minimum balance required to keep that position open. If your account balance falls below the Maintenance Margin due to market fluctuations, you may receive a margin call, which necessitates depositing additional funds to cover potential losses.

Note: It's crucial to remember that leverage, while boosting profit potential, also heightens risk. Particularly in volatile markets, excessive leverage can lead to significant and rapid losses.

Insurance Fund

To safeguard traders, OraiDEX maintains an Insurance Fund funded by a portion of the fees incurred when users open and close positions, as well as liquidation fees. The Insurance Fund covers any shortfall in payouts to winning traders in the event losing positions are liquidated. This mechanism protects winning traders by ensuring their profits are paid out in full as expected, despite any losses from liquidations. The Insurance Fund provides an extra layer of protection and allows trading to continue smoothly.

Stop-loss orders and Take-profit orders

To further manage risk, traders can use stop-loss and take-profit orders in Futures Trading. A stop-loss order is an automatic trigger that sells your position when the asset's price reaches a certain level, helping you limit losses. On the other hand, take-profit orders allow traders to lock in profits when the asset reaches a predefined price level. These tools are essential for risk management, allowing traders on OraiDEX to set predefined parameters for your trades and avoid sudden market fluctuations.

Low-Cost Trading

Trading perpetual futures on OraiDEX is highly affordable. Opening and closing fees start at just $0.04 per transaction.

The ultra-low trading fees open the door to perpetual futures for all types of traders. You get to keep more of your capital working for you.

Lower fees empower you to execute more trades and adopt active trading strategies. Pay less per transaction and maximize your profit potential.

Take advantage of the minimal fees to increase your capital efficiency. The savings boost your returns.

Join Now: OraiDEX Futures Trading Beta Competition

Futures Trading on OraiDEX is not just about innovation; it's about community engagement. To celebrate this exciting new feature, OraiDEX is launching the Futures Trading Beta Competition. As part of our community, you're invited to be among the first to experience this game-changing tool. The best part? You have a chance to share in a prize pool of $2,500, an opportunity that can't be missed.

Registering for the beta is simple. Join the OraiDEX community, access the beta version, and begin your trading journey. As you trade, you'll accumulate rewards, which can lead to your share of the $2,500 prize pool.

OraiDEX is also offering a Liquidation Rebate Program with a $2,500 fund. Although liquidations are not ideal for traders, observing liquidations is crucial for OraiDEX to fully test the platform's functionality before launch.

📆 Deadline for registration: Oct 19, 2023, 00:00 (UTC)

🕒 Competition period: Oct 20 - Nov 3, 2023

More details about the competition and how to join can be found in this article.

Don't forget to send us your feedback during the beta testing phase. Your invaluable insights will help us identify areas for improvement and optimization as we prepare for a smooth experience for all users.

Wrapping up

Join us on this journey, and don't miss the chance to become a part of the OraiDEX community. Futures Trading awaits—get ready to embrace this innovative tool that will change the way you trade cryptocurrencies. Your feedback and active participation matter; they're essential to our mission of enriching the DeFi experience.

This adventure is for all of us. We value your insights and suggestions for new features. As a token of appreciation, we have exciting rewards for active participants! The top 5 most active members will win a total prize pool of 50 $ORAI. And don't forget, we'll send an exclusive Oraichain T-shirt to the most dedicated SamORAI contributor!

So, are you ready to make the most of Futures Trading on OraiDEX? Join the beta version, dive into the world of crypto trading, and potentially claim your share of these rewards. Your journey begins here.
Disclaimer: Please note that this post is intended for educational purposes only and should not be considered as financial advice. It is important to conduct your own research before making any investment decisions.

Table of Contents
  1. What is Perpetual Futures Trading?
  2. Long and Short Positions
  3. Understanding Margin and Leverage
  4. Insurance Fund
  5. Stop-loss orders and Take-profit orders
  6. Low-Cost Trading
  7. Join Now: OraiDEX Futures Trading Beta Competition
  8. Wrapping up