Another platform for cryptocurrency margin trading derivatives such as BTC futures is BaseFEX. It provides a contemporary trading experience and offers traders the option of 100x leverage for Bitcoin and Altcoin leverage on a very high level.
BaseFEX is striving to be one of the extremely transparent, progressive and genuine crypto margin derivatives exchanges. The team of BaseFEX is based in Hong Kong but the exchange is registered in the Seychelles. It is registered under the name of Base Investing Corp. and owns a company # 205276. The company started operation in 2018.
BaseFEX Trade Screen
The trade screen of BaseFEX offers a similar arrangement as many other exchanges so it is not too difficult or complex to grasp. To the left you can see a section where you can choose assets and contract types. There are USDT/ BTX settled tabs. Under them you can find all crypto pairs available with latest price and percentage change.
Below that you can see the current positions for the pairs selected. Under this section you are able to view your balance in Bitcoin.
To the right of these section you can find the main trade graph. Above it you can see information on the selected asset and its recent change in USD and/ or BTC. After that, at the right side, there are indicators for 24-hour change, volume, open interest plus funding rates. There is a tab Product Specs – once you click on it you will be redirected to the Perpetual Contracts Specification section.
You can adjust the graph in order to be fully convenient for you. The default chart type is the price one but you easily switch to a depth type one. You can also change the time interval and choose among 1/ 5/ 15/ 30 min., 1/ 4/ 12 hours or 1 day. Right of these you can see other indicators, different settings plus an option for setting full screen.
Above the placement of the graph you can view different values such as open, low, high and close. The display of the default graph is chosen to be a candlestick one and when you hover over you can see particular data.
How to Place an Order
To the left bottom of the graph you will find the basic type order section form. You can enter different quantities and/ or price= You also have the option of choosing between Market and Limit orders. Enter the needed information and then click on the Sell/Short or Buy/ Long buttons. You will be presented with details on every action cost, order values and the balance available.
So what can you do when you want to start an order? Go to the dashboard Trade and choose your preference – Buy/ Long or Sell/ Short. BaseFEX system will auto check whether you own enough balance to keep your opening margin.
If there is a case of an existing position, the platform’s system will again auto confirm that your existing balance is covering any changes to margin maintenance and PNL. Then the order will be placed if you have enough funds. Just remember that if there is an net order active which is not filled or is cancelled, it will be accounted for. This action will lower your existing balance by the opening margin of the net order.
What are Some Indicators You Can Use on BaseFEX?
To find the different indicators you have to click on the wave line above the trading graph. Once you click you can see several indicators which you can scroll down or search by name. Some of the indicators are: Accumulation, Distribution, Balance of Power, Chaikin Money Flow, Chop Zone, Connors RSI, Directional Movement, Double EMA, Envelope, Know Sure Thing, MACD, Money Flow, Rate of Change, Spread, Volume, Vortex Indicator and many more. In total you can find 50 + indicators
What are The Settings you Can Adjust on The Trading Graph?
Some of the settings in the trading section you can choose among are Style, Background, Scale, Timezones. The style has options such as candles colors, border, wick and location of the scale. Options for scales include the placement, the type of the scale, margin, and decimals. The options for background are arguments of the indicator, title, value, line patterns and many more. With timezone options you can choose the timezone and also sessions break.
What are The Types of Orders at BaseFEX?
There are couple of different types of orders and everyone of them is related to cryptocurrency derivatives trading.
A Market order is executed right away using the price of the market when the order is placed. This type of order is perfect for the traders who wish to execute an order as soon as possible. For a market order you can just put quantity.
A Limit order gives the option of specifying the minimum value or maximum value you want to sell or accordingly buy. This type of order is a good way to minimize the trading cost. But it also can lead to order that are not executed or such that can get executed in a very long time. This usually happens when the price you have is way far from the price of the market.
What are The Requirements for Margin at BaseFEX?
The exchange has very clear outlines about opening margin requirements in a document named How to Trade. For orders Buy/ Long, the starting margin is (SM x Contract x Bid Price Limited x the Multiplier). The exchange reserves a commission with the limited bid price. The commission you have to pay is calculated when the end execution happens and is based on this price.
For a Sell/ Short order, your opening margin will be (OM x Contracts x Maximum /Price of limit offer, the best bid/ x the Multiplier). Just like a Buy/ Long order, the Sell/ Short orders commission is calculated using the price for execution. Meanwhile, BaseFEX is reserving the price for limit offers contract or the best bid – the exchange chooses on the base of which or the two is higher.
BaseFEX is not charging for an opening margin if an order reduces a position size. Both for Sell/Short – Buy/ Long the calculations slightly change. The opening margin is changed on a net Buy Long order and is based on the Buy order – the Sell order.
The process of liquidation at BaseFEX varies based on if you have low risk or high risk limit. If there is a low risk, the exchange cancels each order that is open within a particular contract. This will liquidate position by using the rate of bankruptcy if you are not able to fulfill the margin maintenance.
If there is a high risk available, then the system will attempt to alter the risk limits by trying to lower it. From this point it can reduce the margin maintenance requirements in a couple of ways. For example by lowering the risk limit in order to maintain the present position or by canceling each open order before the risk limit is lowered so it can match the current positions.
If the above methods does not work and there is risk of liquidation remaining, then the engine for liquidation reacts. This engine closes the said positions/ positions by using the price for bankruptcy. If the exchange is able to liquidate the positions at better prices than the ones of bankruptcy, additional funds enter the Insurance Fund. If the exchange cannot do liquidations of the positions at the said rate of bankruptcy, the Insurance Fund will close positions. If the position in question still cannot be liquidated then Auto Deleveraging comes into action.
BaseFEX Deposits and Withdrawals
The process of performing a deposit is very easy and straightforward. You click on My account under the profile icon and then click on Deposit. You will be presented with a wallet multi signature address. You can send the desired funds to this secured address. Once there is a confirmation, the funds are credited into you account. There is no minimum deposit. The deposit depends on the opening margin.
If you wish to withdraw funds you follow the same steps and choose Withdrawal. BaseFEX processes all withdrawals up to 7:00 UTC+00 every day
You can easily find information on BaseFEX fees under the Fees menu. The page includes every contract pair and the corresponding fees as a percentage amount. There are fees for long and short funding, takers and makers. The interval for funding is every 8 hours for a contract.
|Level||Trading Volume Last 30 Days (BTC)||Maker Fee||Taker Feer|
|Contact||Long Funding Rates||Short Funding Rates||Funding Interval|
|BTCUSD||0.0100%||-0.0100%||every 8 hours|
|ETHXBT||0.0100%||-0.0100%||every 8 hours|
|XRPXBT||0.0100%||-0.0100%||every 8 hours|
|BCHXBT||0.0100%||-0.0100%||every 8 hours|
|LTCXBT||0.0100%||-0.0100%||every 8 hours|
|BNBXBT||0.0100%||-0.0100%||every 8 hours|
|BTCUSDT||0.0100%||-0.0100%||every 8 hours|
|ETHUSDT||0.0000%||-0.0000%||every 8 hours|
|EOSUSDT||0.0100%||-0.0100%||every 8 hours|
|ETCUSDT||0.0100%||-0.0100%||every 8 hours|
|DASHUSDT||0.0100%||-0.0100%||every 8 hours|
As we mentioned above, BaseFEX does not charge fees for deposits and withdrawals. The only exception applying it that case is the BTC network fees but they do not go to the exchange.
BaseFEX has a discount fees policy for the large volume traders. In order to qualify for this service your account has to have an order value total of USD 35 million in 7 days. This will give you a 50 % discount on the commission fees.
BaseFEX has very high security levles and features. For example, there is a 100% storage of different assets in cold multi signature wallets. The exchange takes meticulous security actions in order to maximize piece of mind and convenience for its users. In addition to that, BaseFEX offers the bounty bug program which encourages users to alert the platform for any issues of security they find. This way the problem gets to be solved immediately.
As we mentioned, the assets on BaseFEX are stored in different cold multi signatures wallets. All storage stays offline everytime. The wallets setup means that even if BaseFEX receives a cyber attack and the security is compromised, the funds will be safe.
Also, there is an additional precautions when it comes to withdrawals. Each withdrawal is audited manually. Minimum two employees at the exchange audit the withdrawals before they are sent out. Majority of the funds have no individual keys that are stored on a cloud server of any type.
For deposits, security measures include a verification of all addresses of the deposits. This is performed through a service external to the platform.
Wallets at BaseFEX
The wallets at Basefex use cold storages and require multi signatures. This is how the exchange stores BTC offline. For each transaction that is performed multiple signatures are required. Before there is an event of any kind of expense at BaseFEX, the transaction must be signed by 5 out of 7 partners.
The usage of multiple signatures addresses is essential to the security improvement of the platform. It helps with cyber-attacks and funds theft and provides users accounts and fund security.
Frequently Asked Questions at BaseFEX
BaseFEX has very extensive FAQ section. Not only it focuses on answering the many questions that traders may have but it also offers educational resources. The first part of the FAQ zone explains some concepts connected to the usage of perpetual contracts. You can find definitions of such contracts, futures and mark price. Also there you can learn how the exchanges calculates prices for settlements and perpetual contracts.
There is also a section explaining leverage and its various terms such as opening margin and margin maintenance. The following section is focusing on the concept of liquidation – how and why it is happening etc. If you want to learn more about Auto Deleveraging concept, Insurance frauds and other concepts the FAQ page will help you with information.
A Futures Contact is an agreement to buy or sell a commodity, or other instrument the future.
A Perpetual Contact is similar to a traditional futures contact in terms of trading, yet it will in long as wish. the perpetual Contract at BaseFEX tracks the unerrlying Index Price.
It achies this via a Funding mechanism.
Mark Price means the price where the contract is marked for its Unrealized PNL calculation and for Liquidation
A Futures Contract represents a buy or sell agreement for a currency, commodity or any other instrument for a preset price in a specified time in the future.
The exchange offers various amounts of leverage for every individual product. The highest leverage BaseFEX is offering is 100x.
The initial margin is the minimum opening amount of BTC or USDT you have to deposit in order to open a position.
Under your Account tab, go to Deposit and you will see a multi signature deposit address for your BTC or USD. The funds are going to be credited to your BaseFEX account after a confirmation.
BaseFEX minimum deposit is 0.
There are numerous methods to contact customer service at BaseFEX. For the majority of the questions there is the FAQ section where everything regarding the exchange, products, trading margins it is thoroughly explained. However, if you happen to need additional support – it is available via live chat, email, twitter, telegram. There is no telephone number anywhere on the website and some take this as a disadvantage.
Advantages and Disadvantages
|🙂 PROS||🙁 CONS|
|✓ Low commission fees||✘ Exchange is new to the market|
|✓ Up to 100 x margin trading||✘ Limited number of crypto currency|
|✓ Easy to use platform||✘ US users and Quebec cannot use BaseFEX|
|✓ Great risk maintenance|
|✓ Options for futures trading|
BaseFEX is a newly launched exchange offering derivatives crypto trading and also Altcoin futures. The leverage offered is high – up to 100 x. The number of perpetual contracts offered is high as well – 11. Fees at BaseFEX are extremely reasonable, deposits and withdrawals are not charged.
The trading platform is very user friendly – the trade screen has great design, different features and indicators, as well as differently styled charts.
BaseFEX is a great platform for new and experienced traders, it offers margin trading with high leverage and has great security systems. The only downfall is that the exchange is fairly new to the market and it will need time to gain good reputation and track record