KuCoin Academy Lesson 14|Learn Futures Trading From Scratch: Enabling, Transferring, Trading and Closing Positions
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In the first week, we said that the most convenient and easiest way to get crypto assets is to directly purchase them through an exchange. In addition to knowing how to buy cryptocurrency using fiat currency, you also need to know how to make transactions between cryptocurrencies if you want to become a senior crypto investor.
In KuCoin Academy lesson 14, we will learn Futures Trading From Scratch: Enabling, Transferring, Trading and Closing Positions.
Similar to margin trading, before starting futures trading on KuCoin, it is necessary to open the futures trading service and transfer crypto assets to the futures account to trade. The process of futures trading is divided into four steps in total, namely: enabling futures trade, transferring assets to a futures account, trading, closing positions.
Contents:
*How to enable Futures Trading
*How to transfer assets to a futures account
*How to trade
*How to check your positions
*How to close your positions
1. How to enable Futures Trading
1. Login KuCoin Futures, and click “Trade”. Then, click the button “Enable Futures Trading” and tick “I Have Read and Agree” to proceed with the operation.
2. To ensure the security of your account and assets, please set and verify your trading password.
2. How to transfer assets to a futures account
1. To check your assets on KuCoin Futures, click “Assets” — “Futures Account” on the top right corner of the page and you will be redirected to the assets page.
2. On the assets page, you can check your total assets, the weighted BTC and USDT equity, available balance, position margin, order margin, unrealised PNL and the PNL history in your account. In the “PNL History” part, you can check the historical profit and loss of your positions.
3. KuCoin Futures offers two ways for you to deposit funds:
Method 1: If your USDT or BTC are on another platform, you can click “Deposit” directly and deposit the USDT or BTC to the specified address. For USDT deposits, please pay attention to choose the corresponding network protocol in the deposit window.
Method 2: If you already have USDT or BTC on KuCoin, click “Transfer” and transfer your USDT or BTC to your KuCoin Futures account to start Futures trading.
3. How to trade
1. Log into KuCoin Futures, go to “Trade” and select the Futures product. KuCoin Futures currently supports USDT-margined BTC Perpetual, ETH Perpetual, BCH Perpetual, BSV Perpetual and BTC-margined BTC Perpetual, BTC Quarterly 0925, BTC Quarterly 1225.
2. To place an order on KuCoin Futures, please select the order type and leverage, then enter your order quantity. KuCoin Futures supports three types of orders currently: a) limit order, b) market order and c) stop order.
a. Limit Order: A limit order uses a pre-specified price to buy or sell the product. On KuCoin Futures Pro, you can enter the order price and quantity and click “Buy/Long” or “Sell/Short” to place a limit order;
b. Market Order: A market order is an order to buy or sell the product at the best available price in the current market. On KuCoin Futures Pro, you can enter the order quantity and click “Buy/Long” or “Sell/Short” to place a market order;
c. Stop Order: A stop order is an order which will be triggered when the given price reaches the pre-specified stop price. On KuCoin Futures Pro, you can select trigger type and set the stop price, order price and order quantity to place a stop order.
KuCoin Futures supports the switch of order quantity units between “Lot” and “BTC”. After switching, the display of the quantity unit in the trading interface will change as well.
3. Select the leverage ratio: The leverage is utilized to multiply your earnings. The higher the leverage is, the greater the earnings you will have as well as the losses you may bear, so please be prudent with your choices.
Different futures products support different leverage amounts. The BTC and ETH perpetual contracts that KuCoin Futures has launched provide up to 100x leverage, BCH and BSV perpetual contracts provide up to 50x leverage, and delivery contracts support up to 20x leverage. If your KuCoin Futures account is not KYC verified, your order leverage will be restricted. For users who have not completed the KYC verification process, the highest leverage available is 5x. As below:
4. KuCoin Futures offers advanced settings including “Post Only”, “Hidden” and Time in Force policies such as GTC, IOC, etc. for orders. Please note that the advanced settings are only available for limit or stop orders.
5. Buy/Long & Sell/Short. On KuCoin Futures, if you’ve already entered the order info, you can click “Buy/Long” to go long your positions, or click “Sell/Short” to go short your positions. If you go long your positions and the Futures price goes up, you will earn profit. If you go short on your positions and the Futures price goes down, you will earn profit.
*Notice (will be displayed below the “Buy/Long” and “Sell/Short” buttons): the KuCoin Futures platform has maximum and minimum order price restrictions for orders; The “Cost” is the needed margin to execute an order. Please ensure there’s sufficient balance in your account to place an order.
4. How to check your positions
On KuCoin Futures, if you have submitted an order successfully, you can check or cancel your open and stop orders in the position list.
If your order is executed, you can check your position details in the “Open Positions”.
Quantity: Number of Futures in an order;
Entry Price: Average entry price of your current position;
Liquidation Price: If the price of the Futures is worse than the liquidation price, your position will be liquidated;
Unrealised PNL: The floating profit and loss of the current positions. If positive, you have profited; If negative, you have lost funds. The percentage indicates the proportion of the profit and loss to the order amount.
Realised PNL: The calculation of the realised PNL is based on the difference between the entry price and exit price of a position. Trading fees as well as Funding Fees are also included in the realised PNL.
Margin: The minimum amount of funds you must hold to keep a position open. Once the margin balance drops below the maintenance margin, your position will be taken over by the Liquidation Engine and get liquidated.
Auto-Deposit Margin: When Auto-Deposit Margin mode is enabled, funds in the Available Balance will be added to the existing positions whenever liquidation happens, trying to prevent the position from being liquidated.
Take Profit/Stop Loss: Enabling take profit or stop loss settings will allow the system to perform the take profit and stop loss operations automatically to your positions to prevent funds losses caused by volatile price fluctuation. (Recommend)
For more details, please refer to the “Reference”.
5. How to close your positions
1. Click on “Positions” , There are two ways to close your positions: Close with Market Order and Close with Limit Order.
2. Close with Market Order: Enter the position size you plan to close, click “Confirm” and your positions will be closed at the current market price.
3. Close with Limit Order: Enter the position price and position size you plan to close and click “Confirm” to close your positions.
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