Learn about TSLAUSDT perpetual contracts and their risks
TSLAUSDT is a perpetual contract that tracks the price of Tesla stock and is settled in USDT. It does not represent stock ownership and involves risks including leverage, funding fees, forced liquidation, and market volatility. The focus of learning should be on product structure and risk management.
Contract characteristics and stock ownership
TSLAUSDT is a USDT-margined perpetual contract. Its price references Tesla stock listed on Nasdaq, but it uses cash settlement. Traders can go long or short, with profit and loss calculated in USDT. Holding this contract does not mean holding Tesla stock, so it does not confer shareholder voting rights or dividends.
Trading mechanisms and funding fees
This contract has no expiration date and uses a funding rate mechanism to help keep the contract price close to the reference spot price. Funding fees are settled between longs and shorts every hours and are not fees paid to the platform: when the rate is positive, longs generally pay shorts; when it is negative, shorts pay longs. 4
Leverage and forced liquidation risks
Leverage allows a larger market exposure to be established with less margin, while also amplifying losses. The highest leverage stated in the evidence is 5x; in a simplified example, if the price moves approximately in an unfavorable direction after using 5x leverage, the margin may be exhausted and trigger forced liquidation. Actual results will also be affected by factors such as fees.
Margin modes and risk management
Cross-margin mode calculates margin using the assets and multiple positions in the account, so positions may affect one another; isolated-margin mode limits risk to a specific position. Beginners should cautiously control position size and leverage and set stop-losses in advance. Trading permissions, parameters, and regional availability may change, so check the platform's latest rules before trading.
Original Tutorial
https://www.binance.com/zh-CN/academy/articles/how-to-trade-tesla-tsla-on-binance-futures
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