Cryptocurrency trading or speculating wouldn’t be the same if futures trading have not existed. This is known also by Bitrue, that is among other platforms providing futures trading.. With Bitrue, you can trade perpetual futures contracts, which allow you to amplify the value of a coin by a custom amount, thus increasing your earnings potential. But this comes not without risk, let’s take a look at the futures trading options on Bitrue.
Why Choose Perpetual Futures on Bitrue?
Bitrue’s perpetual futures stand out as they do not have a set expiration date. This concept, firstly introduced by Bitmex, allows traders to determine their holding periods, thereby enhancing the liquidity of their positions. The pricing of these futures is anchored to an asset index, reflecting the average spot price and trading volume of the asset. More on these prices later in the document.
How Do You Use Futures on Bitrue?
First things first, so in order to begin trading futures on Bitrue, users need to be following the following steps:
- Log in to your Bitrue account.
- Navigate to the Futures tab at the top of the page.
- You will be directed to a trading screen that might look familiar, if you already know how to trade spot markets, but with additional options on the right side.
How Do You Fund Your Futures Account?
Before you can start trading, you need to fund your futures account. This can be done on the following way;
- Click on the transfer icon located on the right.
- Enter the amount of USDT you wish to transfer from your current account.
- Click confirm to complete the transfer.
How Do You Select a Trading Pair and Begin Trading?
After funding your account, you can start using futures by selecting the desired trading pair from the dropdown menu on the left. Simply type in the ticker to find your trading pair. Or you can trade the most popular ones. Please know before liquidity before blindly going into a trade.
Perpetual futures give you the options of going long or short:
- Long positions are profitable if the contract price increases.
- Short positions are profitable if the contract price decreases.
Understanding Futures Trading Information
What Is the Mark Price?
The mark price is the average asset price from multiple sources. It is designed to be resistant to manipulation and is used in many calculations. If one exchange fails to display the ‘right’ prices, others will correct the mean price.
What Is the Funding Rate?
This is very important because the funding rate is a periodic fee that ensures correct asset pricing. It’s exchanged directly between users and depends on your position:
- If the contract price is above the asset’s spot price, long positions pay the fee.
- If the contract price is below the asset’s spot price, short positions pay the fee.
Funding costs are the net profit or loss resulting from the price divergence between the futures and spot markets. Bitrue adjusts funding costs every 8 hours without charging any fees for this service. So, funding costs need to be taken into consideration when opening futures positions.
Difference Cross and Isolated
When going long or short, you have the choice between cross and isolated margin modes. The difference could make a very big impact on your trading experience and lifecycle:
- Cross margin mode utilizes all the funds in your futures account for the margin, including unrealized profits from other positions. This is not advised; when the tide turns, you could leave yourself shirtless, meaning completely rekt.
- Isolated margin mode restricts the margin to a specific amount you set. This is advised, especially for new traders.
How Do You Choose Leverage and Place an Order?
When you know the ropes of trading futures, you can start by selecting leverage, but you have to consider that:
- Leverage increases the potential profit from your contracts, as well as the risks, proportionally. It’s a knife that cuts both ways.
- Higher leverage can lead to easier liquidation of your position.
Leverage in USDT perpetual contracts intensifies both profits and losses. For example, with 3x leverage, a $1 increase in the underlying asset’s value equates to a $3 profit, and a $1 decrease translates to a $3 loss.
If you have decided whether to place a limit or market order, you can enter the amount you wish to buy or use the slider to adjust the number. Bitrue offers up to 125x leverage, but using this amount of leverage is pretty ‘degen’.
Monitoring Your Positions and Risks
If you are trading with leverage, you will have a liquidation price. This is the price that triggers the closure of your positions. You can view your open positions and important metrics below on the ‘futures’ page. These include:
- Liquidation price: If your contract hits this price, you face partial or full liquidation.
- Unrealized profits and losses: This indicates potential gains or losses if you were to close your position at the current time.
You have the option to close positions using market or limit orders and set take profits or stop losses to automatically close at predetermined price points. This is important to watch out for and keep in mind while in positions.
How Do I Fund My Bitrue Futures Account?
To begin trading futures, it’s important to transfer funds into your separate futures account. By following the steps above, you know how to do this already. You have to take into consideration the amount of capital you are willing to risk. Adhering to the golden rule is key: only deposit what you can afford to lose.
If you want to play it safe, Bitrue offers a way to use trial funds for futures trading. We take a look at how you can use these funds to dip your toes into the futures water, so to speak.
What Exactly Is the Bitrue Futures Trial Fund?
The Bitrue Futures Trial Fund is a unique offering that enables Bitrue users to engage in futures trading without having to transfer funds to their futures account. The steps to use them are listed below. Also, for more information on earning on Bitrue, you can visit our Bitrue – Bonus page here.
Step-by-Step Redemption and Utilization of Trial Funds
To use the Bitrue Futures Trial Fund, visit the ‘My Rewards’ section in your Rewards Center. Sort through ‘Received’, ‘Pending’, or ‘All’ to view all trial fund details. You can redeem the fund within its validity period; this will last 7 days.
Trading with the Trial Fund
To trade with the trial fund, navigate from the list or the total trial fund amount to the futures trading page. Here, the available trial fund amounts will be displayed. Open a position by clicking ‘Buy’ or ‘Sell’. It’s as simple as that.
Maximizing the Use of the Trial Fund
The trial fund is used first for margin and deductions when opening a position. This means it will be used for paying funding or open or closing fees that will be calculated on the complete position. Profits earned from the trial fund can be freely transferred or withdrawn. Good luck.
Conclusion
Perpetual futures trading on Bitrue can significantly enhance your trading experience by offering the flexibility to go long or short with considerable leverage. However, it’s crucial to approach this with a well-informed strategy and a clear understanding of the risks involved. By mastering the fundamentals and utilizing tools like the Bitrue Futures Trial Fund, you can experiment safely and gain the confidence needed to navigate the futures market.