🌠Perpetual

LN Exchange offers perpetual contracts that have linear and quanto payouts.

When engaging in perpetual contract trading, it's crucial for traders to grasp several mechanics of the futures market.

Here are the key components traders should understand:

⚡Multiplier

This indicates the value of one contract. You can find this information in the Contract Specifications for each instrument.

⚡Position Marking

Perpetual contracts follow the Fair Price Marking method. The mark price determines Unrealised Profit and Loss (PNL) as well as liquidations.

⚡Initial and Maintenance Margin

These margins are pivotal as they determine the level of leverage available for trading and the threshold for liquidation.

⚡Funding

Funding occurs every 8 hours. Any position held in a perpetual swap during this period will either pay or receive funding. Traders can monitor the current funding rate for a contract in the "Contract Details" section at the bottom left of the Trade tab. Additionally, historical rates can be found in the Funding History or in the individual "Contract Specifications".

⚡Symbol

A symbol in trading identifies a specific financial instrument, combining both a base currency and a quote currency. BTC/USD indicates the price of one Bitcoin quoted in US dollars.

Understanding these components is essential for effective and informed trading in perpetual contracts. Below outlines the comparison of the three support payout types:

Payout Type	Linear	Quanto
Description	The price of a linear contract is expressed as the price of the underlying against the base currency.	A quanto contract is a derivative instrument where the underlying asset is denominated in one currency (COIN), but the contract itself is settled in another currency (COIN2) at a predetermined rate. These contracts are structured to simplify trading and comprehension. However, it's important to note that when trading Quanto Perpetuals, your underlying margin and Profit and Loss (PNL) are denominated in COIN2. Despite the underlying and quote currencies not being COIN2, traders are still exposed to COIN/USD price risk.
Who is it for?	Traders who seek to take either long or short positions on COIN relative to USDT.	Traders who seek exposure to other COIN in dollars relative to COIN2.
Price / Symbol	COINUSDT	COINUSD
Underlying	COINUSDT	COINUSD
Quote Currency	USDT	USD
Examples	BTCUSDT	BTCUSD
Multiplier / Contract Size (could be in smaller or bigger sizes than 1 COIN or 1 USD)	USDT per COIN	COIN2 per 1 USD
COIN Value per contract	Price * Multiplier	USD Value / COINUSDT Price
COIN2 Value per contract	-	COINUSD Price * COIN2 Multiplier
USDT or USD Value per contract	Price * Multiplier	COIN2 Value * COIN2 Spot Price
Margin / PnL Currency PnL Calculation	Quote Currency or USDT # Contracts * Multiplier * (Exit Price - Entry Price)	COIN2 # Contracts * Multiplier (in COIN2) * (COINUSD Exit Price - COINUSD Entry Price) *