A Quick Guide to Understanding Stock Perps

What are stock perps?

Stock perps are Bitget's innovative index perpetual futures for equity assets. The underlying index is constructed from circulating stock tokens (RWA) available on the market. It may include stock tokens from multiple independent issuers (including xStock, ONDO, and others), with weights dynamically calculated and published based on real trading volume and liquidity.

For example, Bitget's NVDA stock perpetual futures index price represents the weighted composite average of NVDA RWA tokens across all supported issuers.

Key differences: Stock perps vs. regular futures

Risk management for stock perps

Liquidation mechanism

Standard liquidation rules apply: risk is evaluated based on liquidation price or position margin ratio. Positions will not be liquidated during market closure periods. When markets reopen, gap up/down events may lead to collateral shortfall. It's recommended to monitor index prices and margin call before the market opens.

Insurance fund

All stock perps have ADL (Auto-Deleveraging) enabled by default. Each perp is initially seeded with 50,000 USDT allocated to the insurance fund. ADL will activate automatically if the insurance fund equity reaches zero.

Stock index calculation logic

The index represents a weighted composite price of the basket of tokenized assets for the given equity. It does not directly track the underlying traditional stock but serves as an aggregate price reference for the traded RWA market. The constituent assets mainly consist of USDT-quoted crypto tokens from issuers like xStock, ONDO, and others.

Index rebalancing

• Regular rebalancing: Executed daily at 16:01:00 (UTC+8) to reflect current market conditions.

• Special adjustments: Constituents will be removed or replaced in the event of delisting, insufficient liquidity, or extreme volatility events, with corresponding adjustments to weights and the divisor.

• Hard forks, airdrops, and mapping adjustments: Soft forks are not adjusted. Newly created tokens are included based on their weight, and tokens that don't meet the criteria will be removed in the next rebalancing. For splits or mergers, the weight is adjusted proportionally.

Critical things to know before trading

1. Trading halt mechanism: Markets are closed on weekends and during announced special periods, aligned with traditional equity market schedules to reduce overnight gap risk.

2. During closure: Mark price is frozen, and no liquidations will occur. Existing orders may be canceled, but new orders cannot be placed. No funding rate settlement occurs. If a gap opening is expected, add margin in advance.

3. Pricing fairness: The index is calculated based on multi-source RWA liquidity to ensure fairness.

4. Overall risk: Margin trading amplifies both gains and losses, requiring strict risk management.

How to trade stock perps on Bitget

1. Sign up and verification

• Visit the Bitget website or download the app.

• Sign up using your email address, phone number, Google, or Apple ID. Set a strong password and enable 2FA.

• Complete identity verification: Complete at least the basic verification (upload your ID). This step is usually required for futures trading.

2. Deposit and transfer USDT to your futures account

• Buy USDT via P2P, fiat channels, or credit card within the app (supports various fiat currencies).

• Alternatively, transfer USDT from an external wallet (TRC20 network is recommended for low fees).

• Go to the Assets page, select Transfer, and transfer USDT from your spot account to your futures account (USDT-M Futures). Transfers are free and instant.

• All stock perps are USDT-M.

3. Go to the stock perps trading page

• Click TradFi in the bottom navigation bar and select the Stock Perps category.

• Search available stock tickers: TSLAUSDT, NVDAUSDT, AAPLUSDT.

• Supported assets include over 30 popular U.S. stocks and indices (such as QQQ), subject to the platform's real-time list.

4. Set trading parameters and place an order

• Leverage: Click the leverage icon to adjust the multiplier (new users should start with low leverage).

• Margin mode: Supports isolated and cross margin, with some support for unified trading account mode.

• Order type:

  • • Market order: Immediate execution.

    • Limit order: Execute at a specified price.

• Direction and quantity: Select Open Long (buy, bullish) or Open Short (sell, bearish) and enter the quantity (the system will display the corresponding position value).

• Setting TP/SL is strongly recommended: You can select and set TP/SL on the order page, entering prices or using trailing SL.

• After reviewing the parameters, click Open Long or Open Short to confirm.

5. Manage positions

• View real-time PnL and margin ratio on the position page.

• You can close, increase, decrease, or adjust leverage anytime.

• Monitor funding rates (paid between long and short positions; long-term holdings should consider the cost).

• During market closures, only pending orders can be canceled, and no new positions can be opened. Mark prices will not be updated.

Risk warning:

Crypto prices are highly volatile, which may lead to significant losses. It is recommended to invest only funds you can afford to lose. Past performance is not indicative of future results. This content does not constitute financial advice. Refer to the Bitget User Terms. Investors should seek independent professional advice and assess their individual financial situation.