Calculation formula: Funding = Position value * Funding rate, Position Value = Lots x Mark Price x Multiplier, Position Value = (Lots / Mark Price) x Multiplier. You can make a great profit or you quickly lose all your assets. This is called Call Margin. Diversify your portfolio, you will have more investment options. Close position: When the BTC price goes up, you can sell the BTC you bought before back to USDT. How to use the worlds most popular NFT Marketplace, Paxos takes back $20 million PAXG from FTX hack. While KuCoin Futures does have two kinds, Delivery and Perpetual. and our actual leverage of the position can be regarded a. barometer of the position risk. In this video I will show you step by step process to enter short positions. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Step 2: Transfer funds to your Futures wallet to start trading futures contracts. KuCoin Academy Lesson 15|How to Reduce the Risk of Margin Trading and Futures Trading | by KuCoin Academy | kucoinexchange | Medium Write Sign up Sign In 500 Apologies, but something went. You can go as low as 1x leverage on futures to though. Funding can be calculated through the funding rate. A-Book means the platform doesn't provide liquidity, so they make the same amount whether you win or lose trades. Once liquidation happens, it will not affect other isolated positions. Margin in Isolated Margin mode is independent for each trading pair, Each trading pair has an independent Isolated Margin Account. You may click, argin account directly or transfer and keep the assets you want to repay/trade in your Margin account. On both Margin and Futures, users can use leverage. Investors can choose the Cross Margin or Isolated Margin mechanism when opening a position, Smooth trading system, fast order execution, You will deal with a high risk of burning your account if you use large leverage, using leverage is very dangerous when the market is highly volatile, Prone to price manipulation: The price of a. A complete Kucoin Futures Trading Tutorial by James of MoneyZG. Investing in a futures contract might cause a company that hedged to miss out on favorable price movements. All Rights Reserved. Step 1: After successfully logging into your Kucoin account. It's one of the few platforms where U.S. users can access a margin account for trading crypto, and it. Future vs Margin - Fee comparison . When the funding rate is positive, holders of long positions pay for those of short positions. Moreover, a Special VIP for "Whales" is available if your total assets exceed one million USDT, you will be eligible for the LV5 fee rate (maker 0%) and other benefits. Open a sell position by placing an Limit order. If you want to make Spot trades, please deposit tokens to your Trading account directly or transfer the relative assets to your Trading account from other accounts. With futures you're able to lose your money about 10x faster than you do with margin. Isolated margin is when an investor only puts up the margin for the specific contract they are buying, while with futures margin, the investor puts up the margin for the entire value of the contract. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Assets in cross margin account are shared by all positions; Margin level is calculated according to total asset value and debt in the Cross Margin Account. When user A earns profit, the unrealized PNL, ecome greater as well, which means the denominator of the formula becomes large, B. I finally found one that does futures that is an A-book exchange instead of B-book like 99% of crypto platforms. Bonus can be used inFutures trading and profits generated from it can be transferred or withdrawn! Futures. Select a coin contract you want to trade. KuCoin Futures has an adjustable interest rate because the funding cost can be higher or lower. Calculation of leverage:Leverage = Position value / Margin, Calculation of floating leverage:Floating leverage = Position value / Margin pool. Completing a set of margin trade . Unrealised PNL: The unrealised PNL is based on the difference between the average entry price and mark price. For more details, please checkKuCoin Futures Deduction Coupon. I wish I had opened my Kucoin futures account over a good meal because I like to get wined and dined before I get fucked. However, when the floating PNL (namely, the unrealized PNL) is negative, the system will raise the actual leverage. When you lose assets and fall below the maintenance margin, you will only lose the amount that you used to open the previous order without affecting the total balance on the wallet. Read More Financial reserves Updated at 9:02:37 AM Total: $3,310,418,752.26 What are the meanings of these commonly used words at KuCoin Futures? M (Mobile) StationHave Fun with KuCoin by visiting the Mobile Site! Instead of fiat currencies or other cryptocurrencies, KuCoin Futures handles Bitcoin/ETH only, and all the profit and loss are in Bitcoin/ETH/USDT. Both platforms have more than 150 different altcoins available for trade; however, Binance has a couple dozen more altcoins on its platform than what is found on KuCoin. Therefore, you need have a good knowledge of cryptocurrency market to make long-term profits. To close an open order on Kucoin Futures, select Position, At the Close Position section, click Limit/Market to close the order at the limit price or market price. Additionally, you can purchase crypto using fiat on Binance for only 0.1%, whereas on KuCoin the transaction fee to purchase crypto with fiat ranges from 3% - 5%. Choose between Cross Margin and Isolated Margin. When the position is at risk, it will automatically deduct from $3,000, which will be liquidated when the funds in the account run out. You may click here to start Spot trading. Reward amounts will be determined based on the type and relevance of the information provided. Welcome to KuCoin Futures! This article will help beginners of Futures trading to know about the related introductory knowledge and to start the trading journey smoothly. Then the BTC price meets a resistance zone and turns bearish that results in losing your funds. The larger the absolute value of the funding rate, the larger the difference between the two prices. Step 2: To start Margin trading, you must transfer funds to Margin wallet. Once liquidation happens, all positions will be liquidated. KuCoin charges rock-bottom fees and supports trading in a huge range of cryptocurrencies. Reward amounts will be determined based on the type and relevance of the information provided. No borrowing funds and repaying. Trading Fees and Funding Fees are also included in the realised PNL. Do not use 100% of your account for margin or leverage trading, you need a cushion to keep that position open when it goes against you, if that's your plan. Trade: Let's buy long using BTC with the BTC/USDT trading pair as an example, using the borrowed USDT to buy BTC. >>> Related: What is Futures? Future or Margin? For more details, please check, Tap into Futures---> Deduction Coupon in, Frequently Asked Questions About KuCoin Futures (Part 1), Frequently Asked Questions About KuCoin Futures (Part 2), Frequently Asked Questions About KuCoin Futures (Part 3), Frequently Asked Questions About KuCoin Futures (Part 4). Once you have enabled margin trading, there are 4 steps you must know to complete a margin trade: Note: Any currency supported on Margin trade can be transferred. ADL (Auto-Deleveraging): When a position is taken over by the liquidation engine,the insurance fundwill be used to cover the extra cost of this liquidation process, i.e., if the position is closed at a worse price than the bankruptcy price. As mentioned, KuCoin has some of the lowest trading fees, even among top exchanges. Here is a comparison chart below for reference: Open a position: Borrow funds and plance an order to trade, Close a position: Sell/Buy to close and repay USDT & interest. The information is updated on a monthly basis. To be specific, when the floatingPNL(namely, the unrealized PNL) is positive, the system will lower the actual leverage. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Crypto Lending and Borrowing. KuCoin Futures adopts a sophisticated risk engine and liquidation model, you can find more details about the calculation of liquidation price in this tutorial. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Your personal information will be kept confidential. It also features an excellent interface for trading and multiple ways to earn money by futures, margin, and peer-to-peer trading. Facebook Margin can be a double-edged sword, meaning gains are amplified but so too are. Learn how to Short Trade Bitcoin and any other cryptocurrency on Kucoin Exchange. The higher the actual leverage is, the higher risk of liquidation would be and vice versa. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Short coins are available on KuCoin for a fee of sixty to ninety dollars. Step 5: To cancel the order just placed, choose Open Order and click Cancel. At Amount section, select the amount you want to sell. For more information, please see our This feature has been officially launched already, and you can visit the Trading Bot on the KuCoin App to find it. Reward amounts will be determined based on the type and relevance of the information provided. Let's go and see the functions of each account. It has the same minimum leverage (low risk options)? CopyRight 2017 - 2023 KuCoin.com. Yah it takes practice to get good at it and unfortunately practice cost money. For newbies: Debt Ratio is the Key to Affect Your Profit or Loss, 1. With the growthof PNL, the margin poolwill become greater as well, which means the denominator of the formula becomes larger,and thus the leverage decreases. This money finances KuCoin's margin trading. Collateral = Initial Margin + Realized PNL + Unrealized PNL < Maintenance Margin. Users can transfer their assets via the transfer option on the Assets Overview page. We highly recommend newbies to control the leverage within 5x. Compare Margin and Future. I won't feel sorry for anyone getting liquidated by margin trading on KuCoin after these past weeks of "temporary downtime upgrades". First, select Transfer. See how Emirex and KuCoin Futures differ with respect to fees, deposit methods, supported cryptos, trading types, user scores and more. Please note,Margin poolincludesMarginandUnrealized PNL. Stop loss: when the market price drops to the price you want to stop loss, the system will automatically sell immediately. I stopped using the margin account as soon as I got comfortable with Futures trading. you canonlyoperateineach tradingpairindependently. You can only repay what you borrowed instead of using other tokens to repay. Transfer principal to your margin account 2. Go, The deduction coupon can be used to deduct, utures trading fees of random amount. The higher the actual leverage is, the higher risk of liquidation would be and vice versa. To have a better understanding of Kucoin Futures, lets assume that you anticipate the price of Bitcoin to rise, you execute a long order. Initial Margin is the minimum amount of funds you must deposit to open a position. Margin Trading. What is margin? Main Account Part 2. #kucoin #futures #leveragetrading #daytrading https://twitter.com/MarkTheDGTWhat's up fellow GRINDERS? KuCoin offers users exclusive fee rates for Futures trading and 0% or low interests on Margin loans through its VIP Privilege. It's basically margin but with less friction (steps to take before being able to trade). Step 4: To open a Long position at the limit price on Kucoin Futures, select Limitorder. HOW TO USE ISOLATED AND CROSS MARGIN ON KUCOIN. Watch on 1. Tap into Futures---> Deduction Coupon in KuCoin app (orclickhere). Maintenance Margin is the minimum amount of funds you must hold to keep a position open. All Rights Reserved. Kucoin Margin is more and more popular because of the following advantages: All forms of borrowing funds with financial leverage carry potential risks, so does Kucoin Margin. Step 1: After successfully logging into your Kucoin account. Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. Futures trading has a lot better UI, PNL is included. All marketplaces for NFTs in one, easy to compare, list. Different from the spot market, you trade financial Futures with others at KuCoin Futures instead. Mark price:This system sets the Mark Price of the Futures to the Fair Price. Margin Trading: It refers to a trade mode in which users borrow a certain amount of digital tokens by pledging digital tokens in KuCoin to make a long (buy) / short . (Don't get REKT)! Learn more details about the Index price. Find the next crypto gem on www.kucoin.com, People's Exchange. When the funding rate is positive, holders of long positions pay for those of short positions. 1.1 Cross Margin Cross margin means that all assets (regardless of type) in the margin account will be used as collateral to improve capital utilization and prevent liquidation. Despite their huge profit, they are also extremely risky, especially for inexperienced traders. #kucoin #futures #leveragetrading #daytrading https://twitter.com/MarkTheDGTWhat's up fellow GRINDERS? This mode is useful for users who are hedging existing positions. Kucoin Cross Margin is a mechanism that allows using all funds in futures/margin accounts for the purpose of keeping your assets from being liquidated. (APP Version). Reward amounts will be determined based on the type and relevance of the information provided. Below is a list of VIP tradings fees: Funding is charged peer to peer between traders. Your personal information will be kept confidential. Privacy Policy. Margin Trade refers to a trade mode in which users borrow a certain amount of digital tokens by pledging digital tokens in KuCoin to make a long (buy) / short (sell) operation. Please click, Main & Trading & Margin & Futures & Financial Account, Recommended videos for new users from Youtube. Kind reminder: This article is based on buying long in a margin trade. For example: Futures/Margin wallet balance is $1000, you open a Short TRX position with the amount of $200. Both Binance and KuCoin have low trading fees starting at 0.1%, but with discounted rates using their native tokens, Binance is lower at 0.075% vs KuCoin's 0.08%. KYC users in restricted countries and regions cannot open Futures trading; Users with IP addresses in restricted countries and regions cannot open Futures trading; Users in our blacklist cannot open Futures trading. It's basically margin but with less friction (steps to take before being able to trade). Twitter icon A. Emirex vs KuCoin Futures (2023) - List of Differences | Cryptowisser 10x to 90x faster lol. Kucoin provides beginners with Futures lite and advanced traders with futures Pro . Click on the wallet icon select Main Account. Go to kucoin r/kucoin Posted by Charkel_ View community ranking In the Top 1% of largest communities on Reddit. If you deal with a risk, you only lose $200 and will not be deducted from the remaining $800 in your account. 2. YouTube When the positionsof. Kucoin Futures and Kucoin Margin Trading Guide, A complete guide to sign up for Binance account for newbies (20% Lifetime Trading Fees discount). Scan the QR code to login KuCoin, From now on, you can market ticker in real time. Select the coin/token you want to trade at Coin section. Futures trading has a lot better UI, PNL is included. . (, If you want to lend your assets out, please keep the relative assets in your Main account) . Rewards will be provided to users who inform us of the above. KuCoin Futures will airdrop bonus to all users! CopyRight 2017 - 2023 KuCoin.com. Stop loss: when the market price rises to the preset price, the system will close the open position Select the desired leverage level on the crossbar. Itonly affects the liquidation price and unrealised PNL. Only after the position is closed will the position's profit/loss be settled and reflected in the balance. By default, the unrealised PNL will change with the mark price on KuCoin Futures. Initially, KuCoin launched what was known as KuMEX. These pairs can include top cryptocurrencies, and unlike futures, margin trading occurs directly on the spot exchange. Tonight I'm going to go over all the similarities and differences between trading on Futures and Cross Margin. If the leverage is high, please pay attention to the position risk. Compare Margin and Future. Isolated Margin Vs Futures Kucoin. Margin trading on Kucoin allows users to trade with leverage of up to 5x. Must-Read 01: How to Trade Futures on the KuCoin App, Only 10 Minutes - Enable Futures Account & Trade (APP), Only 10 Minutes - Enable Futures Account & Trade (Web_Lite). Goclaim itnow! Initial Margin is the minimum amount of funds you must deposit to open a position. It's insane how terrible they are. Borrow funds from the Funding Market 3. 2) Select "margin" from the trade type options. It is a reference PNL of a position. When the market price matches with the selected price, the system will automatically execute the sell order. Rewards will be provided to users who inform us of the above. Click on the wallet icon, select Main Account. Futures Account Part 5. Liquidation: To keep the positions open, traders are required to hold a percentage of the value of their position, i.e., the Maintenance Margin percentage. Select the Margin account you want to use at Margin Account section. If you think that the specific token will go down, at step 2, you can borrow that token then sell it short at a higher price, then buy it back at a low price to make a profit. The assets in the Main account are mainly used for the storage, withdrawal, and deposit of funds and KCS pay fees. If you want to make Spot trades, kindly transfer your assets to your Trading account. Initially, KuCoin launched what was known as KuMEX. Margin vs. Futures trading : r/kucoin by Unconsciously_Sober Margin vs. Futures trading Whats the benefits of using margin instead of futures? Users are able to access to greater capital so they will be in a greater position. Your experience on this site will be improved by allowing cookies. The deduction coupon can be used to deductFutures trading fees of random amount. CopyRight 2017 - 2023 KuCoin.com. B. Take profit: select the price you want to take profit when the rising market price reaches this price, the system will automatically take profit for you. Repay all the borrowed USDT as well as the interest. Risk is isolated in each Isolated Margin Account. For more information, please see our Cookie Notice What is Futures? We highly recommend newbies to control the leverage within 5x. The KuCoin margin trading platform supports cross margin and isolated margin modes. You may deposit or transfer assets to your Futures account to start, You may deposit or transfer assets to your, account to stake assets or participate in soft staking. They shut down futures without warning *intentionally.*. Step 3: Select Trade Futures Trading. Realised PNLis not affected. Also, users can do that on each account page. KuCoin is a cryptocurrency exchange with large trading volume and high liquidity. On the position, you can easily find the "Liquidation Price". By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Pros and cons of Kucoin Margin and Kucoin Futures, Advantages of Kucoin Margin and Kucoin Futures, Disadvantage of Kucoin Margin and Kucoin Futures. When user A earns profit, the unrealized PNLwill be positive. When user B bears losses, the unrealizedPnLw. However, if you suffer losses and reach the maintenance margin level in the process of trading, the system will automatically send you a message that requires to add more funds to your account to maintain your position. Please click, . Reddit and its partners use cookies and similar technologies to provide you with a better experience. Create an account to follow your favorite communities and start taking part in conversations. As shown below: Enable Futures tradingnow to claim the bonus! This means that you can buy more coins/tokens than the original amount by using the assets to collateralize this loan. Index price: The weighted price tracked from the spot prices of 6 exchanges. When it comes to investing in futures, there are two main types of margin: isolated and futures. In isolated margin mode, the leverage is up to 10x and depends on the trading pair. Step 3: Select Trade Margin Trading, then choose the trading pair you want. The company says lenders will always be repaid in full, either from the borrower's collateral or. Three is a level of risk with margin and futures trading hence a lot of decision and management needs to be considered . KuCoin Futures Trading Fees. Risk Warning: Please pay attention to the risk control of Futures trading. Rewards will be provided to users who inform us of the above. Note that trading on margin can exacerbate losses and should only be used by experienced traders who understand and can afford the risk involved. Just set your leverage and begin trading, really convenient. When the borrower's debt is about to expire, the system will automatically borrow the same amount of the corresponding debt assets (which equals the remaining mature debts principal and interest) to continue the debt if there are insufficient corresponding assets in the borrower's account. If you want to repay the debt or make Margin trades, please deposit tokens to your Margin account directly or transfer and keep the assets you want to repay/trade in your Margin account. Try now to leverage more profits with less funds! Could someone please explain to me the differences between margin and futures trading on kucoin. The system will execute the auto-renew procedure. At Amount section, select the amount you want want to buy. All Rights Reserved. To timely show the position PNL, the leverage being displayed is the actual leverage which will be affected by the floating PNL of the position. For instance, in the BTC. Margin is a double-edged sword. I'll be discussing leverage, borrowed margin, liquidation points, stop losses, take profits, and much more. Margin: The margin is used in opening a position or maintaining your current position, which is formed by Initial Margin and Maintenance Margin . Futures deduction coupon has been distributed to your account! The remaining amount is the profit. The system will check the margin level of the Cross Margin Account and notify users about supplying additional margin or closing positions. However, if the insurance fund is not enough, the ADL system will automatically start and deleverage the counterparty positions of the liquidated position at the bankruptcy price of that position, by profit and leverage level priority. When placing a 10x position what would be cheaper to keep for a long hold due to fees. Part 1. 1. KuCoin provides margin trading with leverage positions with over 15 cryptocurrencies like KCS, ETH, and BTC are available. In addition, KuCoin supports 35 trade pairs with up to 10X leverage. Margin in Isolated Margin mode is independent for each trading pair Each trading pair has an independent Isolated Margin Account. If a trader fails to fulfill the maintenance requirement, his/her position will be taken over by the liquidation engine and gets liquidated, and the maintenance margin will be lost. New users should think twice before entering this risky financial trading form. Exchange Comparison KuCoin Futures vs KuCoin The below KuCoin Futures vs KuCoin table shows how KuCoin Futures and KuCoin differ with respect to trading fees, withdrawal fees, deposit methods, supported cryptos, trading types, user scores and more. KuCoin, ByBit, Binance, etc suck generally as futures trading platforms. YouTube icon. If the leverage is high, please pay attention to the position risk.
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