In the dynamic landscape of cryptocurrency trading, particularly in perpetual futures trading, comparing the features of top crypto exchanges holds great importance. With a multitude of platforms available, each offering varying functionalities, fees, and tools, making an informed choice can significantly impact your trading success. By scrutinizing and contrasting these features, traders can identify the platforms that align best with their individual goals, risk tolerance, and strategies. In the following content, we will dive into the distinctive attributes that set certain exchanges apart from the rest, shedding light on how these platforms stand out and cater to the diverse needs of traders in the world of perpetual futures trading.
How Did BingX Stand Out from the Rest?
Unparalleled Price Assurance: Leveraging the world’s foremost depth guarantee feature for seamless trading with zero slippage. This unique guaranteed pricing function ensures that, irrespective of drastic market fluctuations, your positioning remains steadfast at the predetermined price.
Transaction Equity: Harnessing a Dual-Price Strong Levelling Mechanism for Unwavering Security. BingX ingeniously implemented a dual-price robust levelling mechanism that effectively negates various forms of market manipulation and the risks associated with abnormal price shifts.
High Leverage + Minimized Fees: Amplify Gains with the Same Principal Funds. With leverage of up to 150 times, offering the flexibility to adjust your positions freely and execute operations that maximize your potential earnings while keeping fees exceptionally low.
Innovating Professional Services: Elevate Your Derivatives Trading through Automation. With a single BingX account, you gain access to MT5 trading and TradingView signal trading, streamlining the trading process and enhancing efficiency.
Expansive Range of Contract Ecological Products: Diverse Bonus Options for Comprehensive Assurance. Our offerings encompass an array of perpetual contract series, including experience gold, documentary insurance gold, and grid insurance gold, providing a multifaceted approach to securing your investments.
Why does BingX offer both “Standard Contracts” and “Perpetual Contracts”?
The reason behind this dual contract system is to cater to the preferences of a wide spectrum of users, from beginners to seasoned professionals. By providing these distinct contract types, BingX aims to accommodate diverse user needs effectively:
• Perpetual Contracts: Aligned with the industry’s leading perpetual contract offerings, this option caters to both regular and advanced users. Boasting cutting-edge depth, the exclusive guaranteed price feature ensures zero slippage. Additionally, a dual price leveling mechanism provides added security, even for substantial funds.
• Standard Contracts: Tailored for simplicity and user-friendliness, making it ideal for newcomers. This option facilitates swift order placement and instant transactions, catering to those with smaller funds looking for a quick start.
With both “Standard Contracts” and “Perpetual Contracts” available on BingX, how do you make the right choice? Here’s a guide to assist your decision-making:
Perpetual Contracts are suitable if you:
• Are experienced in contract trading.
• Seek zero slippage trading experience during opening or position squaring.
• Require a more sophisticated trading interface.
• Intend to engage in high-volume contract trading.
• Desire to explore enhanced trading depth.
• Wish to venture into automated contract trading.
Standard Contracts are suitable if you:
• Are new to contract trading.
• Value a rapid transaction experience with contract products.
• Prefer a streamlined and straightforward operational approach.
• Are interested in trading Forex, Global Indices, and Commodity Contracts (traditional content removed).
• Want to engage with currency standard contracts.
Simple Order Cost Comparison of BingX and a Generic competitor
Analysis of Order Costs between BingX and Other Perpetual Contracts:
BingX Perpetual Contract:
• Taker (market order) fee: 0.050%
• Maker (limit order) fee: 0.020%
Bitget Perpetual Contract:
• Taker (market order) fee: 0.060%
• Maker (limit order) fee: 0.020%
Profit Threshold for Traders to Be Profitable (50x Fee Comparison, Excluding Spread):
• BingX: 5.0% (Calculation: Taker Fee 0.05% * 2 * 50)
• Bitget: 6.0% (Calculation: Taker Fee 0.06% * 2 * 50)
Average Slippage Value for 10,000 BTC Transactions (Based on July 17, 2023 Data):
• BingX: 0.2213
• Bitget: 1.0148 Final Cost (Assuming BTC Price at $25,000):
• BingX Minimum: $20.8852
• BingX Maximum: $50.8852
• Bitget Minimum: $24.0592
• Bitget Maximum: $64.0592
Summary: BingX boasts lower fees, reduced slippage, evident BTC liquidity advantages, and overall improved order cost efficiency.
How Does BingX Dual Price Levelling Mechanism work
BingX has introduced a dual-price liquidation mechanism in their perpetual contract trading to ensure fairness. This mechanism aims to protect users from unwarranted liquidation during significant deviations between the mainstream spot price and the market price, thus preventing unnecessary losses.
The traditional single-price liquidation approach can lead to forced liquidations when market fluctuations cause futures exchange prices to differ greatly from the spot price.
The BingX dual-price mechanism involves two factors: the mark price and the latest transaction price. This setup allows users to avoid being forcibly liquidated based solely on the mark price. If the user’s position hasn’t crossed the liquidation threshold according to the latest transaction price, they can retain their positions. This prevents forced liquidation due to abnormal price changes and safeguards against market manipulation.
The dual price is calculated as follows:
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Latest Transaction Price: The real-time transaction price of the BingX perpetual contract.
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Mark Price: Calculated as the median of three prices—price 1, price 2, and the latest transaction price. Price 1 is the index price, price 2 is the index price plus a 5-minute moving average. The 5-minute moving average is computed using the average of the buy and sell prices divided by 2 minus the index price. If price 1 < price 2 < latest transaction price, then price 2 is used as the mark price.
BingX vs Other Exchanges Slippage
The slippage on BingX is significantly better than on other exchanges, as evidenced by the following data. The improvement is shown in terms of percentage decrease in average slippage compared to the average slippage values on other exchanges. On average, BingX outperforms other exchanges slippage by 78%.
• For BTC single transaction values ranging from $0 to $50,000:
BingX average slippage: 0.084
Binance average slippage: 0.33
Improvement on BingX slippage: 74%
• For BTC single transaction values ranging from $50,000 to $100,000 :
BingX average slippage: 0.088
Binance average slippage: 0.442
Improvement on BingX slippage: 80%
• For BTC single transaction values ranging from $100,000 to $500,000:
BingX average slippage: 0.13
Binance average slippage: 0.78
Improvement on BingX slippage: 83 %
These calculations indicate that across various transaction value ranges, BingX consistently provides significantly better slippage percentages compared to other exchanges, showcasing its superior trading performance, especially when transacting larger sums of BTC.
While the data suggests that BingX exhibits impressive slippage improvements compared to other exchanges across various transaction value ranges, it’s important for readers to remember that individual trading needs can vary. As such, it’s highly recommended for traders to conduct their own thorough research and practical testing when selecting the exchange that best aligns with their trading preferences and requirements. Factors such as trading volume, user interface, available features, and overall platform stability can all impact one’s trading experience. By evaluating different exchanges first hand, traders can make well-informed decisions that suit your unique trading goals and strategies.
