CoinEx | Basic Concepts of Futures Trading that Beginners Should Know

What is crypto contract trading?

In the crypto space, contract trading allows investors to profit from the rising/falling crypto prices by buying long or selling short. Crypto contracts are similar to conventional contracts, and the only difference between them is that the underlying assets of the former are cryptocurrencies like Bitcoin or Ethereum.

Futures trading on CoinEx

What is futures trading in the crypto context?

Crypto futures are a kind of innovative financial derivatives that works like a market of secured assets, and the price of crypto futures is close to the index price of the underlying assets. Unlike conventional futures, crypto futures do not expire. As such, when trading crypto futures, you may hold the futures until liquidation. For example, on CoinEx, all crypto contracts traded are futures that are available 24/7. In addition, they do not expire and will not be settled.

Futures trading on CoinEx

What are linear/inverse futures contracts?

On CoinEx, linear futures contracts are also called USDT-margined contracts. One feature of such contracts is that investors only need to hold USDT, a stablecoin. In the case of a BTCUSDT linear futures contract, for example, the contract is priced in USDT and also settled with USDT. The advantage of these contracts is that you can trade multiple types of cryptos as long as you hold USDT, which helps you avoid the risks of price swings and lowers the cost of switching between different positions.

Linear futures contracts on CoinEx
Inverse futures contracts on CoinEx

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