TL;DR
- An INR crypto futures contract is priced in Rupees and settled in Rupees, with no stablecoin required at any stage.
- Your initial margin is the INR deposit that activates a position; maintenance margin is the minimum you must keep to avoid liquidation.
- Understanding the PnL formula before you trade is the single most important step for any new futures trader.
INR-crypto futures allow traders to speculate on cryptocurrency price movements without holding the underlying asset, with profits and losses calculated in Indian Rupees.
This guide explains how these contracts work, including contract structure, margin requirements in INR, settlement mechanics, and how profit and loss are calculated through a practical example.
The Anatomy of an INR Futures Contract
Main guide: What is the difference between Spot and Futures trading in Crypto
Every futures contract has a defined set of parameters. For INR crypto futures these are:
| Parameter | Description |
| Underlying asset | The cryptocurrency the contract tracks (e.g., Bitcoin, Ether) |
| Contract size | The amount of the asset represented by one contract |
| Quote currency | INR (the currency in which price is expressed) |
| Settlement currency | INR (the currency in which PnL is paid out) |
| Contract type | Perpetual (no expiry) or fixed expiry |
| Leverage range | Defined per asset, e.g., 1x to 20x |
The most important thing to understand is that you are not buying any crypto such as Bitcoin directly. You are buying a contract that moves with Bitcoin’s price. The underlying asset never changes hands in a cash-settled futures trade.
What Is Margin in INR Futures?
Main guide: Margin in Crypto Futures Explained
Margin in crypto futures is the collateral you deposit to open and maintain a leveraged position. In INR futures, this collateral is in Indian Rupees.
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There are two types of margin you need to understand:
Initial Margin
This is the amount you must deposit to open a position. It is calculated as:
Initial Margin = Position Value / Leverage
Example: You want to open a long position on Bitcoin worth ₹1,00,000. You choose 10x leverage.
Initial Margin = ₹1,00,000 / 10 = ₹10,000
You deposit ₹10,000 to control a ₹1,00,000 position.
Maintenance Margin
This is the minimum margin balance you must maintain to keep a position open. If your account balance drops to the maintenance margin level due to losses, your position enters the liquidation process.
Maintenance margin is typically a percentage of the position value, for example 0.5% or 1%, set by the exchange per asset.
Isolated Margin vs Cross Margin
Main guide: Cross Margin in Crypto Trading Explained
Most INR futures platforms offer two margin modes. Choosing the right one matters for risk management.
- Isolated Margin: Only the margin assigned to a specific position is at risk. If that position is liquidated, the rest of your account balance is safe.
- Cross Margin: Your entire account balance acts as shared collateral for all open positions. This gives positions more room to survive volatility, but a large loss on one position can affect all others.
For new traders, isolated margin is generally safer because it enforces a hard boundary on your maximum possible loss per trade.
Also read: When do traders choose Cross Margin instead of Isolated Margin
How Contract Pricing Works
Main guide: Mark Price and Last Traded Price in Crypto Futures – differences
INR crypto futures use two prices simultaneously:
- Mark Price: A calculated fair value price that prevents manipulation. It is based on the spot price from a reference index plus a funding basis. Unrealized PnL and liquidation are calculated using the mark price, not the last traded price.
- Last Traded Price: The price of the most recent transaction on the futures order book. This is what you see on the chart.
The separation matters because in low-liquidity moments, the last traded price can spike sharply, which would unfairly trigger liquidations if used as the reference. Mark price protects traders from this.
How Settlement Works in INR Crypto Futures
Settlement in INR futures works differently depending on the contract type.
Perpetual Contracts (No Expiry)
Perpetual contracts do not settle on a fixed date. Instead, a funding rate mechanism is used to keep the futures price anchored to the spot price.
Every few hours, a funding payment is exchanged between long and short holders:
- If the futures price is above spot, longs pay shorts.
- If the futures price is below spot, shorts pay longs.
You can read more about how this works in our funding rate explained guide.
Realized PnL from a perpetual contract is settled when you close your position. Until then, your PnL is unrealized and fluctuates with price.
Fixed Expiry Contracts
Fixed expiry contracts settle automatically on a predefined date. At expiry, the exchange calculates the final settlement price (usually the average spot price over a short window) and closes all positions at that price. PnL is credited or debited in INR automatically.
A Full PnL Example in INR
Here is a complete worked example showing how profit and loss are calculated on an INR futures position.
Setup:
- Asset: Bitcoin
- Direction: Long
- Entry price: ₹82,00,000
- Position size: 0.1 BTC (notional value: ₹8,20,000)
- Leverage: 10x
- Initial margin: ₹82,000
Scenario 1: Bitcoin rises to ₹90,20,000
PnL = (Exit Price – Entry Price) x Position Size
PnL = (₹90,20,000 – ₹82,00,000) x 0.1
PnL = ₹8,20,000 x 0.1
PnL = ₹82,000
Return on margin: ₹82,000 profit on ₹82,000 margin = 100% return.
Scenario 2: Bitcoin drops to ₹73,80,000
PnL = (₹73,80,000 – ₹82,00,000) x 0.1
PnL = -₹8,20,000 x 0.1
PnL = -₹82,000
The position loses ₹82,000, which equals the full initial margin. At this point, the position is liquidated to prevent further loss.
Unrealized vs Realized PnL
Understanding the difference between these two is critical before you start trading.
- Unrealized PnL is the paper profit or loss on an open position. It changes every second as the price moves. It is not money you have received; it is a snapshot of what you would get if you closed right now.
- Realized PnL is confirmed profit or loss. It is recorded when you close a position (or when a position is liquidated). This is the amount that is actually credited or debited from your INR balance.
A common beginner mistake is treating unrealized PnL as banked profit. It is not. Prices can reverse. Until you close, nothing is settled.
What Happens at Liquidation?
Main guide: Liquidation in Crypto futures explained
If your margin balance falls below the maintenance margin level, your position is automatically liquidated by the exchange. This process is designed to prevent your account from going negative.
The liquidation price is the price at which this automatic closure triggers. You can calculate it before opening a position so you know your risk threshold.
Liquidation is not a penalty. It is a risk control mechanism. But it does mean you lose the margin you committed to that position, so position sizing and leverage selection matter enormously.
Final Thoughts
INR crypto futures are built on the same mechanical foundation as any other futures product: margin, contracts, funding, and settlement. The only structural difference is that every step uses Indian Rupees instead of a stablecoin.
Once you understand initial margin, mark price, and the PnL formula, you have the foundation to trade responsibly.
WazirX is launching INR-settled crypto futures to make this entire framework accessible to Indian traders in their native currency. If you want to experience futures trading in INR with transparent pricing, deep liquidity, and a platform you already trust, WazirX Futures is ready for you.
Frequently Asked Questions
Yes. Anyone can legally trade crypto derivatives on platforms that follow Indian compliance requirements such as KYC and FIU-IND registration.
Initial margin is what you deposit to open a position. Maintenance margin is the minimum you must keep to avoid liquidation. If losses push your balance below maintenance margin, your position is closed automatically.
Mark price is a manipulation-resistant reference price calculated from spot market data. Unrealized PnL and liquidation triggers use mark price, not the last traded price.
Funding is typically exchanged every 8 hours on most perpetual futures exchanges. The rate can be positive or negative depending on market conditions.
With proper risk controls and isolated margin mode, losses are capped at the margin assigned to that position. Cross margin mode carries more risk if you have multiple open positions.
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