Successful Trading in Cryptocurrency Futures: A Comprehensive Learning Guide

Preparation Stage and Information Requirements

Having fundamental knowledge is critical to succeed in derivatives markets. Before engaging in futures trading, you should develop a comprehensive understanding of risk management, technical analysis, and market dynamics. Every investor will find much to learn in this field. In the initial stage, you should allocate time to improve your skills and internalize basic concepts.

Most cryptocurrency exchanges offer a complex interface. However, as you learn the system logic and features, ease of use increases, and you will be able to trade comfortably in a short time.

Account Opening and Fund Transfer Procedures

To start futures trading, you must first have a spot trading account. After opening an account, you need to activate the futures account by entering the derivatives section.

To fund your futures wallet, you need to hold crypto assets in your spot account. The transfer process is straightforward: click the transfer icon in the wallet section to initiate the transfer, specify the amount and source wallet, then confirm. The balance will reflect in your futures account within a few minutes.

If you are new to futures trading, it is recommended to familiarize yourself with the platform using the test network without risking real funds.

Interface Structure and Main Components

The derivatives trading platform generally consists of several key sections:

Menu and Information Pages: From the main menu, you can access different derivative products, trading bots, and market data. The information tab includes technical FAQs, API documentation, funding rates, and index price data.

Price Chart and Market Data: You can select contracts, examine real-time charts, view order book depth, and monitor recent trade flows. You can choose between the original chart presentation or TradingView integration.

Position Tracking Panel: You can check your open positions, pending orders, and trading history from this section. Detailed trade reports for specific date ranges can be viewed.

Margin Summary: You can see your account balance, transfer transactions, and position information. Regularly check your margin ratio to prevent liquidation.

Order Entry Area: Place buy and sell orders here. You can switch between cross and isolated margin modes and adjust leverage levels.

Platform elements can be resized and moved as desired, allowing you to create a personalized workspace.

Leverage Settings and Risk Management

You can set the leverage ratio independently for each contract. In the order entry panel, click on the current leverage ratio to select your desired level (default 20x). You can adjust it using the slider or by entering a value directly.

An important point: as the position size increases, the maximum leverage ratio decreases. Smaller positions can use higher leverage. High leverage entails a higher risk of liquidation. Every investor should carefully evaluate the risks associated with their chosen leverage level.

Price Types: Index Price and Last Price

During periods of high market volatility, two different price references are used to protect against sudden price swings and unwanted liquidations:

Last Price: The most recent transaction price of the contract. Used to calculate realized profit/loss.

Index Price: A reference price calculated from spot exchanges and funding data. Used for liquidations and unrealized profit/loss calculations. Designed to prevent price manipulation.

When placing stop orders, you can select which price to trigger the order—last price or index price.

Order Types and Application

Various order types are available for different situations and strategies:

Limit Order: Executes at the specified price or better. If the market price does not reach the limit price, the order will not be filled.

Market Order: Immediately buys or sells at the best available market price. A maker fee rate applies.

Stop-Limit Order: When the stop price is reached, the limit order is added to the order book. Stop and limit prices can differ.

Stop Market Order: When the stop price is reached, a market order is triggered (not a limit order).

Take Profit Limit Order: Used to close open positions. When the stop price is reached, the limit order is triggered. Effective as a risk management tool.

Take Profit Market Order: Similar to the limit order but executes at the market price after being triggered.

Trailing Stop-Loss: Automatically protects your position based on profit. As the price moves favorably, the stop-loss level rises (or falls for short positions). The retracement rate is set via (callback).

Trading Calculation Tool

The calculator in the order entry section helps estimate potential outcomes before entering a position. There are three main calculations:

• PNL Tab: Calculates initial margin, expected profit/loss, and return rate.
• Target Price Tab: Shows the exit price needed for the desired return.
• Liquidation Tab: Estimates your liquidation price.

Hedge Mode: Simultaneous Long and Short Positions

Normal mode (single-directional) allows opening only long or short positions in a single contract at a time. In hedge mode, you can hold both positions simultaneously.

For example, if you believe an asset will rise in the long term but fall in the short term, you can open a short position for the short-term decline while maintaining a long position.

To activate hedge mode: go to settings → position mode → select hedge mode. Note that you cannot change the mode if you have open orders or positions.

Funding Mechanism

Funding rates keep the futures price close to the spot price. Essentially, investors periodically pay each other based on their open positions.

• If the funding rate is positive: long position holders pay short position holders.
• If the funding rate is negative: short position holders pay long position holders.

Most platforms settle funding payments every 8 hours. The next payment time and estimated rate are shown in the chart section. You can review past funding rates to inform your strategy.

Order Features: Post-Only, Validity Period, and Reduce-Only

Post-Only (Publish Only): Your order is always added to the order book and will not match against existing orders. Useful if you want to receive maker fees.

Validity Period (TIF):

• GTC (Good Till Canceled): Remains active until fully executed or canceled.
• IOC (Immediate Or Cancel): Partially filled orders are canceled for the unfilled portion.
• FOK (Fill Or Kill): Must be fully executed immediately; otherwise, canceled.

Reduce-Only (Only Reduce): In single-direction mode, orders with this option can only reduce your current position, never increase it.

Liquidations and Risk Levels

Liquidations occur when your margin balance falls below the maintenance margin requirement. Margin balance equals your total account balance plus unrealized profit/loss.

Cross Margin Mode: Margin is shared across all open positions.

Isolated Margin Mode: Each position has its own margin pool.

When your margin ratio reaches (bakiye / required margin) 100%, liquidations automatically begin. After liquidation, all your open orders are canceled.

Monitor your margin ratio in the bottom right corner. To avoid liquidation, you should monitor your positions or manually close them as you approach critical levels.

Auto-Leverage Reduction System (ADL)

The system maintains a insurance fund to cover losses. However, during periods of extreme market volatility, fund losses may not be fully covered. In such cases, the system may systematically reduce open positions of investors with the highest profits and highest leverage.

Your ranking can be viewed in the ADL section of the position panel.

Conclusion and Recommendations

Futures are complex derivative instruments but can be used effectively through systematic learning. It is very important to practice in a test environment before risking real funds, develop basic strategies, and understand all risk factors.

Successful futures trading requires discipline, risk management, and understanding market dynamics. Since there is always a risk of loss, you should consider your financial situation and risk tolerance during your trading activities.