Futures trading

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Mastering Bitget's Perpetual Futures Trading

2024-10-28 02:381653
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Perpetual futures contracts offer an innovative way to engage in the crypto market. At Bitget, we prioritize delivering a comprehensive and user-friendly trading experience. In today's article, let us walk you through the process of trading perpetual futures on Bitget!

Understanding perpetual futures contracts

Most futures contracts are conventional; that is, the expiration date is specified in the contract. If the contract price approaches the spot price near the settlement date, all related positions will expire (meaning they get settled).

However, as the name implies, perpetual contracts don't have an expiration date. You can hold the positions forever and close them at any time. Another crucial thing to note is perpetual contracts are written on an asset’s index price, which equals the average price of that particular asset with respect to its spot price and trading volume. As a result, these types of futures are mostly exchanged hands at a price very close to the underlying spot price.

Funding Rate

As perpetual contracts have no expiry, profits and losses cannot be calculated in the same way as normal futures contracts. Fund Fees on Bitget are traders’ profits/losses, updated and realized every 8 hours based on the price difference between the perpetual market and the spot market. Bitget does not charge this fee; it is paid into winning accounts with funds taken from losing accounts, depending on the open positions. Real-time funding rates, as well as historical data, can be found here.

Margin and Leverage

Two concepts all futures traders must encounter are margin and leverage.

Margin is the amount of capital traders are required to deposit into their margin account before opening a new position. Leveraging is borrowing capital to trade contracts, amplifying your buying or selling power to a maximum of 125X. With collaterals as proof of traders' ability to honor their contract obligations, they can exploit the borrowed capital from exchanges to undertake a new investment.

Margin requirements and leverage levels vary between exchanges and coin pairs, but rules remain the same: the lower the volatility of the underlying, the higher the leverage available for its futures contracts.

How Bitget is leading the way

Launched in 2018, our efforts have resulted in a customer base of 25 million users from 100 countries and regions worldwide. As one of the Top 5 global crypto derivatives platforms by derivatives trading volume, Bitget has always been dedicated to providing traders with the best experience possible.

We now offer the most comprehensive range of futures products in the world so that every user can find their own solution to crypto futures trading on Bitget: 200+ trading pairs across Bitget USDT-M Futures and Bitget USDC-M Futures for cautious traders, Bitget Coin-M Futures for crypto-geeks and Bitget Copy Trade for those who want to generate a passive income stream with minimum risk. In addition, we have recently launched Bitget One-Way Mode for TradFi veterans, the innovative Bitget Delivery Contracts, and Bitget Index Futures to help our users manage their portfolios more efficiently.

At the same time, we strictly demand that users comply with our margin requirements and introduce risk margins to help users better resist liquidation risks. One more unique feature of Bitget is profits and losses are settled on a real-time basis, representing our guarantee for a sophisticated, accurate data system. Traders will be able to manage their accounts commensurate with the market, thus always in the process of improving their trading knowledge and skills.

Trading perpetual futures on Bitget: a step-by-step guide

Step 1 - Funding your futures account

● Log into Bitget and navigate to the 'Assets' page;

● Click on 'Transfer' under the 'Assets' page to transfer funds from your Spot account to your Futures account without any fees.

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Step 2 - Choosing your favorite trading pair

Once your futures account is funded, you can now start choosing your favorite perpetual futures pairs.

● Head to the 'Futures' tab under 'Market' and explore over 200 futures pairs across Bitget USDT-M Futures, USDC-M Futures, and Coin-M Futures.

● Click 'Trade' to proceed to the trading interface.

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Step 3 - Opening a position

You’ll then choose your mode of margin, preferred level of leverage, together with price, number and direction (long/short) of contracts.

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Step 4 - Managing Your Position

When your position is successfully submitted, you can find it under 'Positions', where you can deliberately adjust the leverage or close the position when needed.

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Embrace futures demo trading

Are you new to futures trading? Worry not! You can also learn futures trading at 0 risk at Bitget futures demo trading. This is a great way to learn how the futures market works and to test your trading strategies without risking any real money.

Head to our futures demo trading page. You must make a pseudo deposit before placing any position. Click on 'Deposit' at the bottom to deposit 1,000 SUSDT worth of demo assets into your account.

That's it! Once you have gained some experience trading futures contracts on a demo account, you can start trading with real money.

Bitget's perpetual futures trading products are designed to accommodate traders of all levels, offering a range of tools and products to suit various strategies. Whether you're a seasoned trader or new to the scene, Bitget provides the resources and support to explore the dynamic world of crypto futures trading.

Bitget Futures Zone | Beginner-Friendly Futures Guide