A Complete Guide to Commodity Perpetual Futures

[Estimated reading time: 5 minutes]

Commodity futures are a key part of the financial derivatives market, mainly used to trade price movements in commodities like oil and natural gas. In traditional finance, commodity contracts typically take the form of standard futures. However, commodity perpetual futures are an innovative product on crypto platforms: USDT-M perpetual futures with no expiry date, margin and hedge trading, and 24/7 market access. As a leading crypto trading platform, Bitget offers commodity perpetual products, enabling users to trade commodity price movements, hedge risks, and amplify returns efficiently without holding the physical asset or being limited by traditional market hours.

This guide covers the key concepts, mechanics, and trading strategies for Bitget's commodity futures, designed to help beginners start trading fast.

1. What are commodity perpetual futures? How do they differ from traditional futures?

Commodity futures are standardized agreements between buyers and sellers to trade a commodity at a specified price in the future. Traditional commodity futures, such as gold futures on the Chicago Mercantile Exchange (CME), have a fixed expiry date. At expiry, they must be either physically delivered or cash-settled, making them suitable for industrial hedging or long-term investment.

Perpetual futures, on the other hand, are unique to the crypto market:

• No expiration date, no physical delivery: Positions can be held indefinitely, with no need to roll over futures or incur rollover costs.

• Funding rate mechanism: Funding is settled regularly (such as every 4 hours for XAU contracts), helping keep futures prices aligned with the spot market.

• Margin and hedge trading: Traders can go long or short, magnifying potential profits (and risks).

• Cash settlement: Margin and PnL are settled in stablecoins like USDT, with no physical delivery involved.

Perpetual futures vs. Traditional futures

Key differences include: • Expiry futures: Have a fixed maturity date and must be closed or settled at expiry.

• Perpetual futures: Can be held indefinitely, with funding fees preventing long-term price deviation. These are suited for short-term speculation or medium- to long-term positions.

Bitget's commodity futures are USDT-M perpetual futures. They are based on real-world assets (RWAs), currently focusing on commodities like oil and natural gas, including BZUSDT and NATGAUSDT. Pricing data comes from authoritative sources like Pyth Network and dxFeed to ensure accuracy and stability.

2. Key features of Bitget commodity perpetual futures

Bitget's commodity perpetual futures are part of a broader USDT-M perpetual product line, which also includes stocks, indices, and precious metals. They are designed specifically for crypto users and offer the following benefits:

• 24/7 trading: Trade anytime, unlike traditional commodity markets with fixed trading hours.

• USDT-M: USDT serves as both margin and settlement currency, integrating seamlessly with the crypto futures pool for easy one-stop account management.

• High and flexible leverage: Up to 100x leverage (depending on the trading pair), allowing users to take positions without holding physical commodities like oil and natural gas.

• Multi-source index pricing: Real-time quotes from multiple providers are weighted by reliability and updated every second to ensure fair pricing.

• RWA exposure: Provides a hedge against traditional market risks, such as inflation and geopolitical uncertainty, while diversifying your portfolio across both crypto and TradFi assets.

Bitget commodity perpetual futures vs. Regular crypto perpetual futures

These optimizations make commodity perpetual futures better aligned with traditional commodity market characteristics, while preserving the flexibility of crypto trading.

3. Risk control mechanisms for Bitget commodity perpetual futures

Bitget uses the same core risk controls for commodity futures as for regular futures products, with multiple layers of protection:

• Liquidation mechanism: Positions are automatically closed when the margin ratio falls below the liquidation threshold, preventing collateral shortfall. We recommend monitoring Monday's traditional commodity market open, as price gaps may occur and pose significant trading risks.

• Insurance fund + ADL (auto-deleveraging): Bitget injects a reserve into the insurance fund. If the fund is insufficient, ADL may be triggered to protect the broader market. For updates, refer to official announcements on the insurance fund size.

• OI limits: Individual position limits combined with platform-wide caps to guard against extreme risks.

• Adaptive mark price: During non-trading hours, the system uses EMA smoothing to prevent unnecessary liquidations due to abnormal price fluctuations.

4. How Bitget commodity futures are priced

The index adopts a weighted average across multiple data sources:

1. Bitget collects real-time spot and futures quotes for commodities from authoritative providers like Pyth Network and dxFeed.

2. The index price is based on reliability-weighted calculations, keeping it closely aligned with traditional markets.

3. Prices are updated every second, and users can view both index prices and mark prices in real time on the futures page.

Bitget dynamically optimizes data sources based on market activity and data stability to ensure accurate and reliable pricing.

5. How to trade commodity futures on Bitget: A practical guide

1. Sign up and verify: Download the latest version of the Bitget app or visit the official website. Sign up and complete identity verification.

2. Fund your account: Transfer USDT from your spot account or wallet to your futures account.

3. Go to the trading Interface: Search for commodity pairs (such as BZUSDT, NATGAUSDT) under the Futures section on the app or website.

4. Configure your trade: Select position mode (isolated or cross), set leverage (1–100x), choose direction (long or short), enter position size, and configure TP/SL levels.

5. Place and manage orders: Supports market orders, limit orders, and conditional orders. Monitor funding rates, position PnL, and liquidation risk in real time.

6. Close and settle: Positions can be closed at any time. PnL is settled directly in USDT, with no expiry.

New users are advised to start with smaller positions and use stop-loss tools to manage risk.

6. Risk warning

Commodity futures are high-risk derivatives. Margin trading can amplify both gains and losses. Commodity prices are affected by geopolitical events, economic data, and inflation expectations, which can lead to sharp volatility or price gaps. While the platform offers liquidation protections and an insurance fund, market risk cannot be eliminated entirely. Ensure you fully understand the product features and only trade with funds you can afford to lose. Past performance is not indicative of future results. Bitget is not responsible for any trading losses. For detailed terms, refer to the Bitget Terms of Use.

Bitget commodity perpetual futures empower you to engage in the price movements of classic commodities such as oil and natural gas, while seamlessly connecting the crypto and traditional financial worlds. Start your commodity futures trading now through the Bitget app or website!

FAQ

1. What are Bitget commodity perpetual futures?

Commodity perpetual futures are derivatives that allow you to trade commodity price movements (such as oil and natural gas). They have no expiry, support margin and hedge trading, and are settled in USDT.

2. How are commodity perpetual futures different from traditional commodity futures?

Traditional commodity futures have expiry dates and require delivery or cash settlement. Perpetual futures have no expiry, require no delivery, and use a funding rate mechanism to maintain price alignment with the spot market.

3. What is the purpose of the funding rate mechanism?

Funding rates are periodic payments exchanged between long and short positions. They help align the futures price with the spot index price, preventing long-term price discrepancies.

4. What are the key features of Bitget commodity perpetual futures?

The key features include 24/7 trading, USDT-Margin settlement, up to 100x leverage, multi-source index pricing, and exposure to both crypto and traditional assets.

5. How are commodity futures different from regular crypto perpetual futures?

Commodity futures are based on traditional commodities with pricing from traditional markets, while regular crypto futures are based on spot crypto prices. They also differ in funding rate and maximum leverage.