Introduction to Futures Products & Features

Apart from Spot trading, a basic product of a crypto exchange, CoinEx has launched Futures trading, providing various options for investors.

Futures Contract is a crypto derivative instrument, it allows investors to profit from the volatile markets. Through Futures trading, investors can Buy Long or Sell Short according to their judgment for the rise or fall of the price.


Advantages of Futures Trading

1. Risk hedging: Futures trading can help you reduce the impact of the drastic fluctuations in crypto markets on investment returns. When the price rises, you can make profit by buying long; and when the price falls, you can also gain profits by selling short.

2. Fund utilization rate improving: Leverage is supported in Futures trading, and traders can magnify their capitals by adjusting the position leverage.

3. Investment portfolio diversifying: Futures trading offers another investment tool for crypto traders, which diversifies the investment portfolio and reduces the risks.


Types of Futures Trading

According to the pricing coin, CoinEx offers two Futures contracts to trade:

Linear Contract: Settled in USDT, read more about Linear Contract.

Inverse Contract: Settled in cryptocurrency, read more about Inverse Contract.

For the difference between the two contracts, please read What is Linear Contract and Inverse Contract.


Function of Futures Trading

1. Buy Long/Sell Short: Buy long refers to buying contracts when you see a rise in the future market, and sell it afterwards. Sell Short refers to selling contracts first when you see a bear market, and buy it back afterwards.

2. Leverage: Unlike the Spot market, Futures trading allows traders to trade in excess of their capitals. Traders can magnify their capitals by adjusting the leverage and trade with larger funds.

3. Margin: Before trading Futures, users only need to pay a small amount of funds according to the contract value as a financial guarantee.