In cryptocurrency trading, investors can predict future price movements based on market fluctuations and profit by going long or short in the futures markets.
Steps for Futures Trading
1. Determine the market trend
(1) Long/Buy: If you expect the futures market price to rise 📈, you can choose to go long by buying contracts.
(2) Short/Sell: If you expect the futures market price to fall 📉, you can choose to go short by selling contracts.
2. Choose leverage
CoinEx perpetual contracts support leverage from 1x to 100x. Choose the leverage level that suits your needs, as the higher the leverage, the greater the risk.
For beginners, using low leverage (e.g., 1x-5x) is recommended to minimize risk and consider your tolerance of potential losses. Avoid high leverage and high risk.
3. Set TP/SL for your orders
(1) Take-profit (TP): Set a target price to sell and lock in profits when reached automatically.
(2) Stop-Loss (SL): Set a floor price to limit losses.
🔗 Learn more: Introduction to Futures Take-Profit and Stop-Loss (TP/SL) >>
How to Trade in Futures Markets
1. Long/Buy: Taking BTCUSDT linear contract for example
Assuming the current price of 1 BTC is 95,000 USDT, if you predict BTC’s price will rise, you buy a contract worth 1 BTC.
When the price of 1 BTC rises to 100,000 USDT, you sell the contract, you earn a profit of 5,000 USDT x leverage (excluding funding fees, trading fees, slippage, and other costs).
🔗 Learn more: How to Buy Long in Linear Futures Contracts (Web | App)
2. Short/Sell: Taking BTCUSDT linear contract for example
Assuming the current price of 1 BTC is 95,000 USDT, if you predict BTC’s price will fall, you sell a contract worth 1 BTC.
When the price of BTC drops to 90,000 USDT, you buy back the contract, you earn a profit of 5,000 USDT x leverage (excluding funding fees, trading fees, slippage, and other costs).
🔗 Learn more: How to Sell Short in Linear Futures Contracts (Web | App)
Comparison of Long and Short Trades
Bet |
Long/Buy |
Short/Sell |
Price Expectation |
Upside📈 |
Downside📉 |
Position |
1 BTC |
1 BTC |
Opening price/Bet |
95,000 USDT/Buy |
95,000 USDT/Buy |
Closing price/Bet |
100,000 USDT/Sell |
90,000 USDT/Buy |
Profit |
5,000 USDT x Leverage |
5,000 USDT x Leverage |
Note: Excluding funding fees, trading fees, slippage, and other costs | ||
Factors Affecting Futures Trading Profits
1. Whether you can profit from futures trading depends on whether the price movement aligns with the position direction: If you buy long, you can profit when the price increases; otherwise, losses occur. While for selling short, you may profit when the price decreases; otherwise, losses occur.
2. The size of the profit depends on the price difference between buying and selling contracts, as well as the position size. If the price movement aligns with the position direction, your potential profit is proportional to the price difference and the position size.
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Worried about risks? Try "Futures Demo Trading" to experience risk-free simulated transactions >>
