How to multiply profits when the price goes up?
Suppose that you have 2,000 USDT, you can use 10X leverage to buy 1 BTC in the BTCUSDT market.
When BTC price goes up to 25,000 USDT, your PNL is 1 * (25,000-20,000）= 5,000 USDT.
If you use 2,000 USDT to buy BTC in spot trading, you can only make a profit of 500 USDT. In futures trading, your profits are multiplied by 10 times with 10X leverage.
|Position Amount||Opening Price||Closing Price||PNL|
|1 BTC||20,000 USDT||25,000 USDT||5,000 USDT|
Note: To simplify the calculation, the above process ignores the calculation of premium, margin profit and loss, trading fees and funding fees.
How to buy long in Linear futures contracts
Example: Open a long position in cross-margin mode with 5X leverage in the BTCUSDT market.
1. Enter futures trading page
(1) Visit CoinEx official website (https://www.coinex.com), log in to your account, and select [Futures Markets] under [Futures] at the top navigation bar.
(2) Click [Linear Contract] and search for BTCUSDT trading pair.
2. Transfer assets to Futures account
Click the "transfer" button, set the direction from [Spot] to [Futures], confirm the coin type and enter the amount, then click [Confirm].
3. Set margin mode and adjust leverage
Click the "Position Mode" button, set margin mode as [Cross] and select [5X] leverage, then click [Confirm].
4. Buy BTC to open a long position
(1) Take limit order as an example, set the [Price] and [Amount], then click [Buy/Long] to submit the order.
(2) You can check position details in [Current Position] after the order is executed.
5. Sell BTC to close the position when the price rises to the expected level
(1) Option 1: Close position in order placing area
Take limit order as an example, set the [Price] and [Amount], then click [Sell/Short] to submit the order. Your position will be closed when the order is filled.
Note: When closing a position in the order placing area, please make sure the order amount doesn't exceed the position amount. Otherwise, a position in the opposite direction will be opened after the order is executed.
(2) Option 2: Close the position in [Current Position]
Take limit order as an example, click [Close] in [Current Position] and switch to [Limit], set the [Price] and [Amount], then click [Confirm] to submit the order. Your position will be closed when the order is filled.
(3) Option 3: Use [Liquidate] or [TP/SL] to close the position
When [Liquidate] or [TP/SL] is applied, the system will use Auction-style Liquidation Strategy to close the position. For more details, please refer to What's Auction-Style Liquidation Strategy and How to Take Profit & Stop Loss in Futures Trading.
6. Transfer assets to Spot account
Click the "transfer" button, set the direction from [Futures] to [Spot], select [USDT] and enter the amount, then click [Confirm].
Futures Contract Trading not only allows you to magnify gains with fewer funds but can also saddle you with amplified losses when the market moves against you. Therefore, we strongly advise entry-level users NOT to use high leverage to avoid forced liquidation or even bankruptcy.