Futures Trading

Futures are a contract between two parties speculating on the future price of a cryptocurrency. Derivatives of an underlying asset with specific requirements like units, pricing, and settlement.

Getting Started with Futures Trading

1. Deposit Funds: Add USDT to your KoinBay Futures account.

2. Leverage Selection: Choose your desired level of leverage.

3. Order Placement: Decide whether to buy (go long) or sell (go short) and specify the number of contracts.

Viewing Trading Activity

• Orders and Positions Panel: Displays all trading activities including open positions, margin ratios, and profit/loss.

• Order History: Shows filled and unfilled orders with details like time, symbol, and price.

• Trade History: Records all executed trades and their details.

• Transaction History: Logs all futures account activities including transfers and fees.

Transferring Funds to Futures Wallet

1. Navigate to Assets: Go to the Assets section in the Futures trading interface.

2. Transfer Funds: Choose the asset type, enter the amount, and confirm.

Selecting Future Trading Pairs

• Search for Contracts: Use the search box to find USDⓈ-Margined or Coin-Margined Futures contracts.

• Contract Selection: Choose the specific contract you want to trade based on volume or price change.

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Calculating Unrealized PNL and ROE%

Formula: Unrealized PNL = Position Size * Order Direction * (Mark or Latest Price - Entry Price). ROE% is calculated based on the unrealized PNL and entry margin.

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Close-All Positions and Loss Calculations

• Profit and Loss Calculations: Based on the last price for better trade management.

• Close-All Function: Allows exiting all positions simultaneously in extreme market conditions.

Understanding Liquidation in Futures

• Purpose: Prevents traders from falling into negative equity in volatile markets.

• Mechanism: Liquidates positions at a specific price (liquidation price) to prevent losses exceeding the maintenance margin.

• Insurance Fund and ADLs: Used to cover losses in cases where liquidation doesn't prevent negative equity.