A Beginner’s Guide: How to Trade Futures on CoinEx?

in futuretrade •  2 years ago 

Many crypto newbies are attracted by the returns of futures trading yet daunted by its complexity. In fact, trading futures is not that difficult. Today, we will teach you how to trade futures on CoinEx through simple, step-by-step instructions. Be sure to read them if you plan to trade futures.

I) Start trading futures on CoinEx & Transfer assets to the Futures Account
Visit the CoinEx website, log in to your account, and click [Futures] on the navigation bar.

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  1. If you are new to futures, please read carefully [Risk Reminder], tick [I have read and agree to accept the risks and liability.], and click [Confirm] to create a Futures Account;

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  1. If your Futures Account balance is zero, you should first transfer assets into the account before trading. Click on [Assets] on the navigation bar, then [Futures] on the dropdown menu, and next [Asset Transfer], and finally select a coin to be transferred from [Spot] to [Futures];

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II) Select the type of futures and the trading pair, and open/close a position

  1. Let’s try starting a long position in the BTC/USDT linear contract market on CoinEx. Firstly, you should select the type of futures and the trading pair. Here, the linear contract and BTC/USDT are chosen.

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  1. Set the margin mode and the leverage, and click on [Confirm]

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Under the Cross Margin Mode, all the available balance in the account can be used as the margin for the current position. Under the Isolated Margin Mode, only the margin of the account in the current market will be used to maintain the position, and you may also increase the margin manually. Moreover, a higher leverage ratio brings greater risks. Therefore, new futures traders are advised to set a low leverage ratio.

  1. If you believe that the BTC price will rise, you could buy long by entering the Price and Amount on the left side of the picture below, and then click on [Buy BTC]. The order will then be sent into the market. Suppose the BTC price now stands at 47,000 USDT and you predict that the price will reach 50,000 USDT. Then you can buy 0.1 BTC at 47,000 USDT;

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  1. Once the order is created, you can check information about the position in [Current Position]. When the BTC price hits the predicted price (50,000 USDT), you can [Close All] or [Close Position];

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In addition, you can also set the liquidation price through the function of [Take-Profit & Stop-Loss] — your position will be automatically closed when the market price reaches the predetermined price, which effectively mitigates the relevant risks.

It should be noted that CoinEx uses the Mark Price to determine the PNL and liquidation price of a position — forced liquidation will be triggered when the Mark Price reaches the liquidation price. As such, you may add more margin in advance to mitigate the risk of forced liquidation.

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Futures trading is not difficult at all, right? CoinEx now features 100+ futures markets, and you may pick one that interests you to start trading.

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