How to Start Bitcoin Futures Trading
Starting Bitcoin futures trading involves having USDT coins in your futures wallet (Wallet) at an overseas exchange, after which you can immediately begin trading. However, as the interface of the futures page is somewhat different from regular spot orders, it is recommended to first familiarize yourself with the interface or UI/UX of the futures page. We will provide detailed instructions on all the steps involved in starting futures trading.
Note that in the method of Bitcoin futures trading we introduce, there are various terms and feature descriptions related to derivatives, so it is recommended for those who do not understand or find it difficult to start by checking the reference materials.https://lifeblog.co.kr/en/78750/bitcoin-futures-trading-terms/
Registering for an Exchange
To sign up for an exchange, you can visit the exchange’s registration page and sign up using either a mobile phone or an email account. After registration for bonuses and withdrawal limits, immediately begin the KYC verification process.
- Once all processes are completed, log in, and it’s advisable to set up security features for asset protection before starting futures trading.
- Transfer from a domestic exchange to the futures exchange and acquire USDT by selling the deposited coins. Or you can deposit USDT directly.
Various Methods to Obtain Tether for Futures Trading
Alternatively, as shown in the image above, you can convert to USDT coins through 1:1 swap trading.
Please select your Crypto assets appropriately and convert them to USDT.
To start trading coin futures, you need to have Tether assets in the futures wallet of the exchange. The process is as follows:
- Click the ‘Wallet’ icon at the top right, then press the ‘Transfer’ button.
- Set ‘From’ to Spot and ‘To’ to USDT-M Futures.
- Set the Coin to USDT.
- Finally, press the ‘Confirm’ button.
Finding the BTC Futures Trading Menu and Page
To access Bitcoin futures trading, click ‘Trade’ at the top, then follow the sequence ‘Futures’ > ‘BTC/USDT’.
On the page that appears, there is a section on the right layout labeled ‘Isolated’. Activate ‘Isolated’ there and then press the ‘Confirm’ button below.
You can see sections marked in red like Long 20x or Short 20x. If you want to trade long, click Long, and for short, click Short.
When clicked, a leverage popup window appears, allowing settings up to a maximum of 120x. Typically, it is set between 10x to 20x, and for practice, 2x to 5x is recommended.
In coin futures, limit and market orders function the same as in spot trading.
- For Limit, simply enter the Price value and Cost (quantity).
- Market orders buy directly from the order book, so there’s no separate setting needed.
You must set the appropriate side for each position in coin futures. For long positions, set Long, and for short positions, set Short.
In starting Bitcoin futures trading, not only profits but also limiting losses are important. Strategically approaching TP and SL can yield better results.https://lifeblog.co.kr/31505/tpsl/
The usual order execution mode is GTC, but in some cases, you may need to choose FOK or IOC. Those with pre-planned trading strategies should also study these execution modes.
- Typically, GTC would be the mode used.
After setting cross isolation, leverage, price, quantity, TP, and SL, finally click either the Long or Short position. This completes the process for trading Bitcoin futures.
Summary of Bitcoin Futures Trading Procedure
When the current Bitcoin price is $29,009, and you want to enter a long position at $29,010, input $29,010 and press the ‘Buy long’ button below.
- Open Price: The limit price you want to enter.
- Current Price: The current coin price.
- Amount: The quantity of coins.
- Margin: The entry margin.
- Liq.price: The liquidation price.
Double-check for any errors and then press ‘Confirm’.
Checking Profits and Margin Ratio in Bitcoin Futures Trading
Once an order is executed, you can check real-time details at the bottom left and three things on the right: profitability, profits, and margin ratio.
- Unrealized PnL: Unrealized profit (profit or loss upon closing a long position)
- ROE: Return on Equity
- Margin Ratio: The higher the margin ratio, the higher the risk of liquidation.
Closing a Futures Position
‘Flash close’ on the right is a market order sell, and ‘Close’ is a limit order sell. Limit order sell executes at the price you enter. Simply put, it’s similar to limit and market orders in spot trading.
With limit order sell, you can see how much profit you’ll make at the selling price you’ve set. Press ‘Confirm’ to execute the sell at that price.
That concludes the process of how to trade Bitcoin futures. It’s advisable to take a serious approach when starting futures trading after having a brief look at the content introduced here.
FAQs on Bitcoin Futures Trading
What are the risky parts to watch out for in coin futures trading?
- Liquidation: Forced liquidation happens when your position is forcibly canceled, so always remember the liquidation price.
- Market and Limit Orders: Use market orders when in a hurry. They’re more expensive, but necessary for quick trades to minimize losses.
Trading Futures on Mobile Apps
For detailed instructions on how to trade futures on mobile apps, refer to the Bitget exchange.