The NC token has expanded its trading options with the introduction of new financial instruments designed for both novice and experienced traders. These additions provide greater flexibility for managing digital asset investments and optimizing potential returns.
This guide details the newly available features, including leverage trading, perpetual contracts, and simple earn products for NC. Understanding these mechanisms is crucial for making informed decisions in the dynamic cryptocurrency market.
Introduction to NC Leverage Trading and Simple Earn
Leverage trading allows you to borrow funds to amplify your trading position, potentially increasing both gains and losses. The newly launched USDT trading pair for NC enables this functionality.
Simple earn products offer a more passive approach, allowing you to earn rewards on your digital assets by participating in various fixed-term or flexible subscription programs.
Key Details for Leverage Trading
The leverage system uses a multi-tier design based on your borrowing amount and position size. This risk management feature helps protect traders by automatically adjusting the available leverage.
It is essential to review the specific margin level requirements and liquidation thresholds before opening a position to fully understand the potential risks involved.
Understanding Simple Earn Products
Simple earn provides a straightforward way to generate yield on idle NC tokens. You can choose from a range of locking periods to suit your investment strategy and liquidity needs.
Available subscription limits and annual percentage yield (APY) can vary based on market demand and product terms. For the most current details on available quotas and rates, always refer to the official platform pages after the launch.
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In-Depth Look at NCUSDT Perpetual Contracts
Perpetual contracts are a type of derivatives product that enables you to speculate on the future price of NC without an expiration date. These contracts are settled in USDT and trade 24/7.
Core Contract Specifications
- Underlying Asset: NC/USDT Index
- Settlement Currency: USDT
- Contract Face Value: 10 NC per contract
- Pricing Unit: Price quoted per 1 NC in USDT
- Minimum Price Movement (Tick Size): 0.00001
- Available Leverage: Ranges from 0.01x to 50x
- Trading Hours: 24 hours a day, 7 days a week
The Funding Fee Mechanism
A funding fee is periodically exchanged between long and short position holders to ensure the contract's price converges with the underlying spot index price. This fee is calculated every 4 hours.
The formula is: Clamp(MA([(Contract Best Bid + Contract Best Ask) / 2 – Spot Index Price] / Spot Index Price – Interest), -1.5%, 1.5%), where Interest is 0.
Important Note for New Listings: To ensure stability during the initial launch phase, a temporary funding rate cap of 0.03% was in effect. This cap was lifted, and the standard maximum rate of 1.5% was reinstated shortly thereafter.
All other trading rules, including order types (limit, market, etc.), align with the standard USDT-margined perpetual contracts offered on the platform.
Frequently Asked Questions
What is leverage trading and how does it work with NC?
Leverage trading allows you to open positions larger than your initial capital by borrowing funds. For NC, you can use leverage on its USDT trading pair. While it can magnify profits, it also significantly increases the risk of losses, especially in a volatile market.
How do I start earning with Simple Earn on my NC tokens?
To get started, navigate to the Earn section of your trading platform. You can then choose to subscribe your NC to either flexible or fixed-term products. The APY and available subscription limits will be displayed for your review before you commit your assets.
What are perpetual contracts and how are they different from spot trading?
Perpetual contracts are derivatives that let you speculate on an asset's price without owning it. Unlike spot trading, where you buy the actual asset, contracts use leverage and have a funding mechanism to tether their price to the spot market, allowing for more complex strategies.
How is the funding fee for NCUSDT perpetual contracts calculated and paid?
The funding fee is calculated every four hours based on the difference between the contract's mark price and the spot index price. The fee is then paid from one side of the contract (longs or shorts) to the other, depending on which way the imbalance leans.
What was the reason for the temporary funding rate cap?
Newly listed perpetual contracts can experience high volatility and initial price discovery. The temporary 0.03% cap was a protective measure to prevent excessively high funding fees for traders during the first critical hours after the contract's launch.
What risks should I consider before using leverage or trading perpetual contracts?
These are advanced, high-risk products. Key risks include liquidation (losing your entire margin), high volatility, funding costs eating into profits, and the complexity of the products. Always use risk management tools and never invest more than you can afford to lose.