Futures contracts are financial derivatives of digital currencies. Traders can buy long to benefit from upward price moves, or sell short to profit from downward moves, based on their judgment of future price trends. Leverage can also be used to amplify potential profits from price movements.
Two types of futures contracts are available on CoinEx: Linear contracts and Inverse contracts.
- Linear contracts use USDT, etc. as margin and settlement currency.
- Inverse contracts use the trading currency itself for margin and settlement.
Linear Contract VS Inverse Contract
|
Type |
Linear Contract |
Inverse Contract |
| Margin Coin | Pricing Coin（USDT, etc.） | Trading Coin（BTC, etc.） |
| Settlement Date | - | - |
| Contract Loss Mechanism | Auto-Deleveraging(ADL), Insurance Fund |
Auto-Deleveraging(ADL), Insurance Fund |
| Liquidation Price | Reasonable Price Index | Reasonable Price Index |
| Price Balance Mechanism | Funding Rate | Funding Rate |
How to use futures trading
1. Visit CoinEx official website (https://www.coinex.com), log in to your account, and select [Futures Markets] under [Futures] at the top navigation.
Note: Please activate Futures trading first before you use this feature. For more details, please refer to: How to Activate Futures Trading.
2. Choose the contract type and the trading pair. (Take BTCUSDT linear contract as an example)
3. Transfer assets from Spot account to Futures account.
4. Set margin mode and adjust leverage.
(1) Cross Margin: All available balance in the Futures account can be used as a shared margin for all current positions.
(2) Isolated Margin: The margin for each position is separated, not shared. Traders must add margin manually.
5. Choose [Buy/Long] or [Sell/Short], and set the price and amount to open a position.
6. You can check the position details at [Current Position] after the order is executed successfully.
7. To close a position, click the [Liquidate] or [Close] button. You can also set a Take Profit (TP) or Stop Loss (SL) order in advance so the position will close automatically when the market price hits your specified TP/SL price.
Note: CoinEx uses the mark price to determine when to force liquidate positions. If the mark price reaches the liquidation price, a forced liquidation will take place.
Related Articles:
How to Take Profit & Stop Loss in Futures Trading