Many newbies to cryptocurrency trading are intimidated by Futures because they think it’s hard to trade. Nevertheless, it is not the case. It’s pretty simple and quick. Today we are going to show you how to trade Futures on CoinEx in a few steps. Don’t miss the following tips if you are thinking of starting to trade futures.
Let’s start with an overview of CoinEx. Founded in December 2017, CoinEx is a professional cryptocurrency exchange that serves a global user base. Committed to making cryptocurrency trading easier, the platform now offers products and services that include spot trading, futures, margin trading, mining, MMA, and CoinEx Dock. They provide simple, reliable, and secure trading services to over 3 million users in over 200 countries and regions.
Simplicity and ease of use are the most salient features of CoinEx Futures, which comes with user-friendly product designs, intuitive trading pages, and a smooth trading process. On CoinEx, users can trade crypto assets (including futures) effortlessly.
CoinEx Futures covers both the linear contracts market and the inverse contracts market, with a maximum leverage of 100x. It should be noted that CoinEx uses a unique pricing mechanism called Mark Price (determined based on the price of futures on traditional platforms) to minimize price discrepancies. At the same time, the platform also uses the Funding Rate mechanism to ensure that the futures price stays roughly the same as the spot price. Additionally, CoinEx has also introduced several forward mechanisms, covering Insurance Fund and Auto-deleveraging (ADL), so that no recovery is needed in the event of a liquidation.
That said, how do you trade Futures on CoinEx? Trading Futures on CoinEx is very simple and involves the following steps:
I. Create Account on CoinEx Futures & Transfer Assets to Futures Account
1. Visit the CoinEx website, log in to your account and click on [Futures] in the navigation bar;
2. If you are new to Futures, you need to create an account on CoinEx Futures. Please carefully read the [Rappel des risques]tick [J’ai lu et j’accepte ces risques et responsabilités]and click [Confirmer] to create a Futures account;
3. If your Futures account balance is zero, you must first transfer assets to the account before trading. Click on [Actifs] in the navigation bar, then click [Futures] in the drop-down menu, then on [Transfert d’Actifs]and finally select a currency to transfer from [Spot] towards [Futures].
II. Select futures type and trading pair, then open/close a position
1. Let’s try to start a Long position in the BTC/USDT linear contracts market on CoinEx. To start, you need to select the futures type and the trading pair. Here we take the BTC/USDT linear contract as an example;
2. Set margin mode and leverage, then click [Confirmer] ;
(Note: There are two margin modes: Cross Margin and Isolated Margin. In Cross Margin mode, all available balance in the account can be used as margin for the current position; while in Isolated Margin mode, only margin of the account in the current market will be used to hold the position, and you can also increase the margin manually.Also, higher leverage comes with higher risks, therefore, new traders are advised to set an effect low leverage!)
3. If you think the price of BTC will rise, you can buy a Long position by entering the price and amount on the left side of the trading segment (see image below), then click [Acheter BTC]. The order will then be sent to the market. Suppose the price of BTC is currently 47,000 USDT. If you expect the price to reach 50,000 USDT, you can buy 0.1 BTC at 47,000 USDT;
4. Once the order is created, you can check the position information in [Position actuelle]. When the price of BTC reaches the expected price (50,000 USDT), then you can choose to [Fermer tout] Where [Fermer la position];
Moreover, you can also set the liquidation price through [Take-Profit & Stop-Loss] – your position will be automatically closed when the market price reaches the predetermined price, which effectively mitigates the risks involved.
It should be noted that CoinEx uses the market price to determine the PNL and liquidation price of a position – forced liquidation will be triggered when the market price reaches the liquidation price. You can therefore add additional margin in advance to reduce the risk of forced liquidation.
You see ? Futures trading is not that difficult! For information, you have the possibility to trade Futures on hundreds of markets available on CoinEx.
Warning: This article is promotional content and does not constitute investment advice. Do your own research and only invest the money you can afford to lose.