Unlock the Potential of Derivatives Trading with ZebPay Futures. Our highly anticipated feature allows you to trade Crypto assets without the need to directly own any cryptocurrency coins.


Get ready for a thrilling ride! We've made it incredibly easy for you. Just create an Account with ZebPay, breeze through your KYC, and top up your account with Indian Rupees. Let's dive into this adventure together and uncover the endless possibilities that await!


ZebPay Futures


Introducing ZebPay Futures, exclusively available for our KYC Verified Indian users on our Web for now. With ZebPay Futures, experience the thrill of leverage trading without the need to invest directly in any Crypto Coins.


We're hard at work developing this feature for the app, and we're excited to announce that Futures will be coming soon to the app as well.


ZebPay Futures exclusively offers Perpetual Contracts for cryptocurrencies paired with INR; these contracts have no expiration date, unlike other types of Futures contracts.


Main Features


  • Use up to 20x leverage on Perpetual futures trading

  • Instant order execution with 0 time delay

  • Use 100+ indicators to improve your trading accuracy

  • Place Market and Limit orders and make your trades work wonders for you

  • Trade stress-free using our ultra-secure multi-stage security protocols

  • A seamless single-window trading terminal to keep you hyper-focused on your trading activity

  • TPSL function ( Take Profit and Stop Loss)

  • Margin Ratio Indicator

  • Open Position, Open Orders, Order history

  • Close Open Position and Cancel Open orders on single click

  • Separate Wallets for Spot & Futures trading


Before we jump into the step by step guide, let's understand some of the important terminologies in Crypto Futures.


Futures Trading Terminology


  1. Leverage


Leverage enables traders to control a larger position in the market with a smaller amount of capital. It allows traders to amplify their potential returns. While leverage can magnify profits, it also increases the potential for losses, as losses are also amplified. It's crucial for traders to understand the risks associated with leverage and use it judiciously.


For each contract, the maximum leverage varies. To illustrate, upon launch, we are introducing BTC-INR and ETH-INR pairs with a maximum leverage of 20 times. This may change in the future.


For instance, investing Rs 1,000 with a 20X leverage gives you a trade size of Rs 20,000.


  1. Funding Rate


The funding rate in futures trading, especially in perpetual contracts, is a periodic fee exchanged between buyers and sellers. It's calculated based on the difference between the spot price and the futures contract price, helping to balance and align them.


Depending on the token pair, the funding payments frequency can vary between 4 hours or 8 hours.


Funding Amounts are calculated using the following formula:

Funding Amount = Nominal Value of Position (of that contract) * Funding Rate (of that contract) 


where, Nominal Value of Positions = Mark Price * Size of a Contract 


Traders are only liable for funding payments in either direction if they have open positions at the pre-specified funding times.You are not liable for any funding if you do not have a position. If you close your position before the funding time, you will not pay or receive any funding.


  1. Mark Price


The mark price serves as a benchmark for calculating unrealized profits and losses in futures trading. It is used to determine the current value of a position relative to the market, providing traders with a reference point to gauge their potential gains or losses without considering the price at which the position was opened. This helps traders monitor their positions more accurately and make informed decisions based on the current market conditions.


  1. Liquidation


Liquidation occurs when a trader’s leveraged position is forcefully closed by the exchange due to either a partial or complete loss of the initial margin. This happens when a trader is unable to meet the margin requirements for their leveraged position, indicating a lack of sufficient funds to maintain the trade.


  1. Liquidation Clearance Fees


A Liquidation Clearance fee is charged when a trader is unable to meet the margin requirements, indicating a lack of funds to keep the trade going. In this situation, the exchange has to forcefully close a trader’s position and a Liquidation Clearance fee will be applied, which includes the Taker fee as well.



  1. TP/SL: Take Profit and Stop Loss


Take Profit (TP) and Stop Loss (SL) are risk management tools used by traders to automate their trading strategies and mitigate potential losses. Take Profit allows traders to set a predetermined price level at which they want to close a position to secure profits. Stop Loss, on the other hand, is set at a price level to limit losses by automatically closing a position when the market moves against the trader beyond a specified threshold. Properly setting TPSL levels is essential for managing risk and protecting trading capital.


  1. Margin Ratio


Margin ratio, also known as margin requirement or margin maintenance level, is the minimum amount of capital that traders must maintain in their trading accounts to cover potential losses and fulfil margin obligations. It is expressed as a percentage of the total value of the position. If the margin ratio falls below the required level, traders may receive a margin call from their broker to deposit additional funds or close out positions to restore the required margin. 



Now that you have a good understanding of basic concepts, let's dive in to know how we can use ZebPay Futures.


How to use this feature?


The first step for using the ZebPay Futures is to Register and complete your KYC. If you are already a KYC verified Indian user, just login to ZebPay Web


Once you are logged in, click on the Futures option in the left panel of the Home Page. You will be redirected to the Futures page. 


ZebPay web HomePage - Logged in Users



ZebPay Futures Page



Different Options and links in the Futures Page




Item

Option Name

Description

1

Futures Trading Pair

Select the Futures Contract that you wish to trade from here

2

Leverage Slider

Adjust the leverage that you want to use for the trade

3

Order Type

Select Limit or Market Order as type for the order according your choice

4

Quick Margin Selection

Select the Margin to use for the trade quickly using the selection here

5

Price and Quantity

Input the Price or Quantity for that you wish to place the order for

6

TP/SL

Set Take Profit Price and Stop loss by selecting this check box

7

Buy or Sell

Buy/Sell buttons with required margin details

8

Margin Ratio, Fees & Taxes

Click to see Margin Ratio, Maintenance Margin, Margin balance and Fees & Taxes applied on the selected trade

9

Quick Price Reference

Quick Price reference with 24 hours trend of the selected pair & Funding rate, Countdown

10

Futures Wallet for funding

Futures funding wallet with current balance. Click here to transfer funds between Futures and Fiat wallets

11

Chart and Indicators

Chart and Indicators by TradingView, click on full screen to maximise the Chart

12

Order book details

Order book details of all open Buy and Sell orders

13

Positions and Order history

All positions in Open with all order history


Funding your Futures Wallet


The first step for starting with your trading is to fund your ZebPay Futures wallet with required Fiat balance. We have made it incredibly easy for you. You don't need to make separate deposits for Crypto Futures trading. You may transfer the Fiat balance available in your ZebPay Fiat wallet to Futures wallet with just a click. 


Step 1: Click on Wallet or Futures Wallet Balance




Step 2: Click on Transfer funds option under the Future tab

Step 3: Enter the Amount and Select the From as Fiat and To as Futures and click on Transfer



Step 4: Wait for confirmation on Transfer, it will be successful instantly



You can review the history of your fund transfers between your Fiat and Futures wallets in the Transaction history section below Wallet selection.



To know more about how to deposit fiat into your ZebPay Fiat Wallet, please refer to our support article here.


Now you are all set to begin your futures trading journey with ZebPay Futures. 


Trading in Futures


ZebPay Futures provides traders with the opportunity to engage in perpetual contracts, which do not come with an expiration date. Our user interface mirrors that of the ZebPay Exchange, ensuring a seamless experience for our users.


Please be aware that only one position can be open for the same pair on one side at a time. Placing an additional order in the same direction will be added to the existing position. However, if the order is placed in the opposite direction, the current open position for the pair will be automatically closed.


Step 1: Select the Futures Contract that you wish to Buy or Sell.



Step 2: Adjust the Leverage as per your choice by dragging the Leverage slider to the right/left



Step 3: Select the Type of Order ( Market / Limit)



Market Order


Market orders are executed at the Current Market price quickly. It is useful when you want to enter or exit positions quickly and are less concerned about obtaining a specific price. However, it's important to note that in fast-moving markets or low liquidity environments, market orders may result in slippage, where the executed price deviates from the expected price at the time the order was placed.



Limit Order


A limit order is an instruction given by a trader to Long (buy) or Short (sell) a specific quantity at a designated price. Unlike market orders, which prioritise speed of execution, limit orders allow traders to specify the price at which they are willing to trade.



Step 4: Set TP/SL or skip this step


TP (Take Profit) indicates the desired price at which a trader aims to close their position. On the other hand, SL (Stop Loss) represents the price level at which the trader's order will automatically close if the market moves unfavourably against their trade.


You can choose to skip this step by leaving the checkbox unchecked. However, it's generally advisable to set TP/SL for your orders to mitigate potential losses in unforeseen circumstances, such as sudden price movements that may go against your trades.



You can also add the TP/SL for already opened positions from the Positions in the Orders tab. 


Step 5: Select the side of your trade, Long / Short



Great job! Your selections are complete. Your orders will be executed according to the choices you've made. You can view them in the Orders Tab below the Chart.



Setting TP and SL Orders


For Long Positions:


Take Profit Price: Must be strictly greater than 1.001 times the Mark Price.

Stop Loss Price: Must be strictly greater than the Liquidation Price and strictly lower than 0.999 times the Mark Price.


For Short Positions:


Take Profit Price: Must be strictly lower than 0.999 times the Mark Price.

Stop Loss Price: Must be strictly higher than 1.001 times the Mark Price and strictly lower than the Liquidation Price.


Step 1: To set a stop loss and take profit on an order that has already been opened, click on the Add icon on the order as it appears in the Positions tab.



Step 2: Add quantity, Take Profit and Stop Loss Prices as mentioned above



Step 3: Please click on ADD TP/SL to place your TP/SL for the trade/position



Step 4: Click on open orders to tab to find your TP/SL orders



Important to know


If the direction of your position changes (from long to short or vice versa), any TP/SL orders set for that position will be automatically cancelled.


Note: TP/SL is triggered on Market Price and not the Last Traded Price.


Checking your Positions or Order history


Unlike holding onto cryptocurrencies for the long term ("HODLing"), trading futures contracts demands continuous monitoring. Given the volatility and rapid fluctuations in the crypto market, maintaining control over your positions and comprehending your trades is crucial.


To facilitate this, we've created an Orders Tab for our users, ensuring a seamless experience and providing greater oversight of your trading activities.


The orders tab have five sub session, they are:


  1. Positions - Displays your open positions



  1. Open Orders - Displays your pending orders or TP/SL Orders



  1. Order history - Displays all the Executed or Cancelled orders



  1. Trade history - Displays all the closed trades with the P&L details




  1. Transaction history - Displays the Debits and Credits in your Future wallets that includes Fees, GST, P&L, Funding Fee etc



Utilise these tabs to manage your open positions and Pending orders. Your estimated profit or loss will be displayed in your account, with profits shown in green and losses in red.


Closing your positions


Unlocking convenience in your futures trading journey, we offer cutting-edge methods to streamline your experience. Embrace the ease of closing positions through our innovative tools, tailored to cater to both traditional and modern trading preferences.


Go to Positions and Click on the Market/Limit link below the Close Position label to Close the position



Close Position - Market: This will place a market order in the opposite direction and exit the trade instantly



Close Position - Limit: This will place an order at your desired price for exit




Adding Margin to your open positions


Leverage trading enables traders to control larger positions than their account balance allows by borrowing funds from the exchange. Margin is the initial deposit required to open a leveraged position; for example, with 10x leverage on ETH priced at Rs 300,000, a Rs 30,000 margin is needed. 


If the ETH price moves favourably, traders can close their position to secure profits. However, if the price moves against their position and their margin falls below the liquidation threshold, the exchange may automatically close their position at the current market price to prevent further losses, utilising remaining funds to cover losses.


You can avoid the liquidation by adding more margin to your open positions. To do this, you need to have enough money for additional margin in your Futures Wallet.


Step 1: Fund your Futures Wallet by transferring fund from your Fiat Wallet

Step 2: Go to Open Positions and click on the Edit button to add or reduce margin



Step 3: Click on the Update Margin to complete the process


Withdrawing your balance in Futures Wallet


To withdraw your INR balance from your Futures wallet, you'll first need to transfer it to your Fiat wallet. From there, initiate a withdrawal order using the Fiat Withdrawal option on the App or Web platform. The withdrawal process remains the same, with funds typically credited to your registered bank account within 15 minutes or, at most, 2 working days.


For your easy reference, we’ve added the steps below.


Step 1: Click on Wallet or Futures Wallet Balance

Step 2: Click on Transfer Funds option under the Future tab






Step 3: Enter the Amount and Select the From as Futures and To as Fiat and click on Transfer



Step 4: Wait for confirmation on Transfer, it will be successful instantly



Step 5: Place a Fiat Withdrawal Request from Fiat Wallet to withdraw the INR received in your Fiat wallet. 



To know more about how to Withdraw fiat from your ZebPay Fiat Wallet, please refer to our support article here.


Fees and Limits for Futures


Like all other types of trading transactions, there are fees and limits attached to futures trading as well. For understanding the different types of fees and the GST for it, please refer to our Fees and Limits page on the website.


Risk Disclosure


Futures trading offers a wide range of opportunities for investors to participate in the financial markets and manage risk. Understanding the key concepts outlined in this article is essential for traders to make informed decisions and navigate the complexities of futures trading effectively. As with any form of trading, it's important to conduct thorough research, develop a solid trading plan, and adhere to risk management principles to maximise the chances of success. 


Trading perpetual futures contracts involves significant risks, including but not limited to market volatility, leverage amplification of gains and losses, potential liquidation of positions, and the possibility of losing more than the initial investment. Investors should carefully consider their risk tolerance and financial situation before engaging in perpetual futures trading.


NoteThe images provided are solely for illustrative purposes; actual values may differ from those displayed in the images.




Frequently asked questions



Q1: How much is the TDS applicable for Futures Trading?


Ans: Under the current TDS structure for Virtual Digital Assets (VDAs) in India, TDS is applicable solely upon the transfer of VDAs. Since futures trading involves trading contracts rather than actual VDAs, no TDS is applicable in futures trading.


Q2: Is 30% Profit and Loss tax rule for VDAs applicable to Futures Trading?


Ans: In contrast to Virtual Digital Asset (VDA) trades, profits from futures trading aren't subject to a flat 30% tax rate. Crypto futures fall outside the definition of VDAs, which encompasses assets like Bitcoin, Ether, non-fungible tokens (NFTs), and 'notified assets,' the latter of which remains unspecified by the government. As crypto derivatives aren't considered crypto assets at present, they are taxed as futures products, exempt from crypto taxation. Consequently, gains in crypto futures are taxed according to your regular tax bracket, with the flexibility to offset losses for up to four subsequent years.


Q3: Can I deposit crypto and trade the same in Futures?


Ans: ZebPay Futures provides a range of selected perpetual contracts for futures trading, where cryptocurrencies are paired with INR. Since these are contract-based trades, you cannot directly deposit cryptocurrency into Futures for trading. However, you can deposit cryptocurrency into your ZebPay account, sell it, and use the received INR to trade in Futures.


Q4: Can I add more funds and save my positions from liquidation in case of high margin ratio?


Ans: Yes, adding more funds can help prevent liquidation in cases of high margin ratios. By increasing your margin, you provide additional collateral to support your positions, reducing the risk of liquidation.


Q5: How do I know if my position is liquidated?


Ans:  Typically, you'll receive notifications or see alerts indicating that your position has been liquidated. Additionally, you can monitor your open positions and margin levels to assess whether they are approaching liquidation thresholds. If your position is liquidated, you may see a zero balance or a closed position in your account.


Q6: Why am I not able to place TP/SL on the same price levels?


Ans: Take Profit must be strictly greater than 1.001 times the Mark Price.

Stop Loss Price must be strictly greater than the Liquidation Price and strictly lower than 0.999 times the Mark Price.That's the reason why the platform may not allow you to place orders at certain price levels.


Q7: What is the GST applicable on Futures Trading?


Ans: GST is levied at a rate of 18% on all deducted fees.


Q8: How do you calculate the Estimated Profit and Loss?


Ans: The formula for calculating is mentioned below.


Estimated Profit: Absolute of {(TP price - Entry Price) * Entered Quantity}

Estimated Loss: Absolute of {(Entry Price - SL price) * Entered Quantity}

Estimated Profit % = Estimated Profit / ((entered quantity * Margin of the position)/position quantity))

Estimated Loss % = Estimated Loss / (entered quantity * Margin of the position)/position quantity))


By setting TP and SL orders, you can better manage your risk and secure your profits. If you have any questions or need further assistance, please don't hesitate to contact our support team.



Q8: How do I know if my margin is near or falling below liquidation price?


Ans: Monitor your trades in perpetual futures contract(s) and Futures account, ensuring adequate margin during volatile times to prevent liquidation. Please note, failure to maintain sufficient margin may result in liquidation and a Liquidation Fee, for which ZebPay holds no liability. Stay tuned as we work on introducing a margin call or alert system in the near future.