| Features | Spot Trading | Margin Trading | Futures Trading |
| Underlying assets | The cryptocurrencies in holdings | Borrowed funds | Derivatives |
| Leverage | Not Available | 1-10X | 1-100X |
| Trading direction |
Profit from price increases
|
📈 Go long 📉 Go short |
📈 Go long 📉 Go short |
|
Costs
|
Up to 0.2% trading fee
|
Up to 0.2% trading fee + |
0.03%-0.05% trading fee + |
| CoinEx trading fee rate varies by different VIP Levels and Market Making Levels. View more about fees >> | |||
| Target traders |
Long-term investors Risk-averse investors |
Intermediate traders with moderate risk tolerance |
Investors with high risk tolerance Short-term speculators |
| Characteristics | Directly exchange cryptocurrencies and gain actual ownership of the asset | Borrow funds from the platform to buy or sell more assets and magnify the initial capital. | Making profits from the rising/falling prices of cryptos by buying long or selling short based on your judgment. |
| Advantages | The number of coins you hold remains unchanged regardless of price fluctuations | Use leverage to maximize profits by buying long or selling short. | Short sell/long buy with higher leverage to maximize your actual gains. Futures contracts have no expiration or settlement date. |
| Disadvantages | Short selling is not available. Traders can only make profits when the crypto price goes up. | Traders need to pay interest on borrowed coins/tokens and bear a high risk of liquidation and double loss | Traders will bear a high risk of double loss and forced liquidation. |
Meanwhile, Futures Trading can be divided into the following types: USDⓈ-Margined Contract and Coin-Margined Contract. The differences between them are as follows:
| Contract Type | Differences |
|
USDⓈ-Margined Contract E.g. BTCUSDT |
1. Favorable for short sellers. 2. Traders only need to hold USDT to open positions. 3. When the price goes down, you will not suffer extra loss caused by opening positions with non-stablecoin like inverse contracts. 4. Lower risks with mild price volatility. 5. Use stablecoins as the pricing and settlement currencies, such as USDT and USDC. |
|
Coin-Margined Contract E.g. BTCUSD |
1. Favorable for long-term holders. 2. Traders need to hold settlement coins like BTC or ETH. 3. When the price goes up, you can make extra profits from holding BTC or ETH long positions. 4. Higher risks with greater price volatility. 5. Use USD as the pricing currency and BTC or ETH as the settlement currency. |
🔗Explore More
Introduction to USDⓈ-Margined Contracts and Coin-Margined Contracts >>