ONUS x Nami: How to trade Futures on ONUS

On June 14, 2022, ONUS officially cooperated with Nami Exchange to integrate Futures Trading on the ONUS application.

Futures is a form of derivative trading, allowing users to place orders in anticipation of the price of an asset without actually owning it. Futures trading allows everyone to trade two-way (Buy/Long; Sell/Short) in both Bull and Bear markets.

Notes: 

Futures Trading is a product built on the cooperation of ONUS and Nami Exchange. Users can deposit assets and trade in Futures contracts directly on the ONUS application. All the information about prices, charts, and placing orders is done via Nami Futures. When deposited into Nami Futures wallet, all assets are stored securely on ONUS and can be withdrawn anytime.

• Maximum leverage: 125x
• Transaction fee: 0.06%
• Funding fee: 0.048%/24 hours (0.002%/hour)
• Liquidation Fee: 1% 

Liquidation Fee and Funding Fee will be deducted from the Futures account balance at the time of fee collection.

*Currently, the Futures feature on ONUS only supports users to trade in VNDC. The team will add trading pairs with USDT soon.

How to trade Futures on ONUS

Below are detailed step-by-step instructions to help you trade Futures on ONUS. First, you need to access Futures and make a deposit to trade.

After successfully depositing, select the desired trading pair and define an investment position: Buy/Long or Sell/Short.

Step 1: Choose 1 of 3 order types: Limit, Market or Stop Market.

Step 2: Select Leverage, enter the trading volume and the entry price (For Limit/Stop Market orders).

Step 3: Set Take Profit/Stop Loss price. 

Step 4: Choose Buy/Long or Sell/Short to complete the order. 

Notes: 

• You can scroll down to keep track of open orders and choose “Modify SL-TP”, “Add margin” or “Close” orders depending on your needs.

• The higher the leverage, the greater the risk because leverage increases profit and loss margin. Please carefully consider the level of risk you can accept before placing an order.
• Liquidation Order: If the asset value falls sharply (for Buy/Long positions) or increases sharply (for Sell/Short positions) by a margin that exceeds the margin value, the order will be closed, and your margin will automatically be liquidated. Nami Futures applies a Liquidation Fee of 1% of the total trading volume of order.

Detailed explanations and instructions for newbies

Before starting, you must select the desired trading pair (for example, BTC/VNDC) and define your investment position: Buy/Long or Sell/Short.

• Buy/Long: You predict BTC will increase in price. You buy BTC at a low price and wait to take profits when the price rises.
• Sell/Short: You predict BTC will drop in price. You short BTC (borrow BTC to sell to the market at a high price) and then wait for the price to drop to buy and return the borrowed BTC, profiting from the difference.

1. Guidance with Buy/Long position

Step 1: Choose 1 of 3 order types: Limit, Market, or Stop Market.

• Limit Order: A limit order is an order to buy or sell an asset with a restriction on the maximum price to be paid or the minimum price to be received (the “limit price”).
• Market Order: A market order is an order to buy or sell an asset at the market’s current best available price.
• Stop Market Order: A stop order is an order to buy or sell an asset at the market price once the asset has traded at or through a specified price (the “stop price”).

Step 2: Select Leverage, enter the trading volume and the entry price (For Limit/Stop Market orders).

You choose the leverage according to your risk appetite, for example, 20x. Then enter the volume you want to make the transaction, for example, 100,000 VNDC. The system automatically calculates the margin amount as 5,000 VNDC. Formula: Margin = Volume / Leverage.

With the above example, you can trade with 200 USDT while you just need to deposit (lock) 5,000 VNDC. 

(*) Margin is the money you need to lock up to execute leveraged trades. The exchange will hold your deposit as collateral to allow you to borrow money to participate in Futures trading.

1. Leverage

Leverage is the capital that the exchange lends investors to trade Futures to increase the potential profit from the investment. Leverage will be applied in multiples based on the investor’s margin value, for example, 1x, 10x,…

Currently, Futures on ONUS supports leverage from 1x to 125x, depending on the asset pair.

Leverage Example:

• Case 1 – No Leverage: If you invest 100,000 VNDC in BTC: Every time the BTC price increases by 1%, you will profit 100,000 VNDC * 1% = 1,000 VNDC and vice versa.

• Case 2 – Use Leverage: If you invest 100,000 VNDC (Margin) in BTC with 20x leverage, the total trading volume of the order will be 100,000 * 20 = 2,000,000 VNDC. Now, every time the BTC price increases 1%, you will profit 2,000,000 * 1% = 20,000 VNDC (20 times more than not using leverage). Conversely, if BTC volatility drops, you also incur a loss on leverage.

2. Liquidation

For Buy/Long position, when the asset price drops sharply with a margin exceeding the margin value, the order will be closed, and your margin will be automatically liquidated.

Example: As in the case above, if the price of BTC plummets past 5% and you incur a loss over the margin value of 100,000 VNDC, the order will be closed, and your margin will be automatically liquidated.

At the same time, you are subject to an additional 1% Liquidation Fee on the total trading volume of the order, equivalent to 1% * 2,000,000 = 20,000 VNDC.

Step 3: Set Take Profit/Stop Loss price. 

For Buy/Long position, you earn a profit when the asset price rises and lose when the asset price falls relative to the entry price.

• Stop Loss – SL: The lowest price within your risk range. You want to stop your loss if the asset price hits or falls below this level. (Note: You should set the Stop Loss price higher than the liquidation price.)
• Take Profit – TP: You want to take profits at a price that touches or exceeds this level.

ONUS recommends that you always set Stop Loss when trading Futures to minimize the risk of liquidation.

Step 4: Choose Buy/Long to complete the order. 

2. Guidance with Sell/Short position

The steps are similar to the Buy/Long position.

Step 1: Choose 1 of 3 order types: Limit, Market, or Stop Market.

• Limit Order: A limit order is an order to sell an asset at a price higher than the market price when placing the order. When the price crosses the desired level.
• Market Order: A market order is an order to sell an asset at the market’s current best available price.
• Stop Market Order: A stop order is an order to sell an asset at a price lower than the market price at the time of placing the order. When it drops to your desired level.

Step 2: Select Leverage, enter the trading volume and the entry price (For Limit/Stop Market orders).

Step 3: Set Take Profit/Stop Loss price. 

For Buy/Long position, you earn a profit when the asset price drops and lose when the asset price rises relative to the entry price.

• Stop Loss – SL: The highest price in your risk range. You expect to stop loss if the asset price hits or breaks this level. (Note: You should set the Stop Loss price lower than the liquidation price).
• Take Profit – TP: The price is lower than the order price. You want to take profits at a price that hits or falls below this level.

ONUS recommends that you always set Stop Loss when trading Futures to minimize the risk of liquidation.

Step 4: Choose Sell/Short to complete the order.