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. It's basically margin but with less friction (steps to take before being able to trade). Future or Margin? KuCoin charges rock-bottom fees and supports trading in a huge range of cryptocurrencies. Maintenance Margin is the minimum amount of funds you must hold to keep a position open. actual leverage of the position can be regarded a. barometer of the position risk. I stopped using the margin account as soon as I got comfortable with Futures trading. Initially, KuCoin launched what was known as KuMEX. All Rights Reserved. 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. Note that trading on margin can exacerbate losses and should only be used by experienced traders who understand and can afford the risk involved. You can follow the steps in the guidance article below to start your Futures trading: How to trade Futures at KuCoin Futures? It is recommended that newbies control the leverage within 5x and set the Take Profit and Stop Loss on your position. Calculation of leverage:Leverage = Position value / Margin, Calculation of floating leverage:Floating leverage = Position value / Margin pool. This means that you can buy more coins/tokens than the original amount by using the assets to collateralize this loan. . Initial Margin is the minimum amount of funds you must deposit to open a position. Then the BTC price meets a resistance zone and turns bearish that results in losing your funds. Users are able to access to greater capital so they will be in a greater position. Click on the wallet icon, select Main Account. So why use the margin account at all? In this article, Ecoinomic.io will guide you to trade Margin and Futures on Kucoin. Reward amounts will be determined based on the type and relevance of the information provided. They will have an amount of funds to trade many times larger than the amount of capital. The safest way to trade is futures, it seems to be the only trade on KuCoin that you can use a Stop Loss and Take Profit. 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. 2) Select "margin" from the trade type options. In simple terms, KuCoin Futures trading is a process of opening a position - getting profit/loss from the position - closing a position. Isolated Margin Vs Futures Kucoin. It is a reference PNL of a position. Collateral = Initial Margin + Realized PNL + Unrealized PNL < Maintenance Margin. For more details, please checkKuCoin Futures Trial Fund. Margin vs. Futures trading : r/kucoin by Unconsciously_Sober Margin vs. Futures trading Whats the benefits of using margin instead of futures? Before starting, you may learn more about KuCoin Margin trading by the video below . Different from the spot market, you trade financial Futures with others at KuCoin Futures instead. In addition, KuCoin supports 35 trade pairs with up to 10X leverage. Please click here to go back to the Assets Overview page. 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. What Is Crypto Margin Trading on KuCoin? The information is updated on a monthly basis. Security Aside from that, KuCoin cares greatly about the security of its users. You can make a great profit or you quickly lose all your assets. 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. Initially, KuCoin launched what was known as KuMEX. How to use the worlds most popular NFT Marketplace, Paxos takes back $20 million PAXG from FTX hack. Kind reminder: This article is based on buying long in a margin trade. Go to kucoin r/kucoin Posted by Charkel_ View community ranking In the Top 1% of largest communities on Reddit. When the positionsof. The deduction coupon can be used to deductFutures trading fees of random amount. Could someone please explain to me the differences between margin and futures trading on kucoin. Only after the position is closed will the position's profit/loss be settled and reflected in the balance. Funding is charged peer to peer between traders. CopyRight 2017 - 2023 KuCoin.com. HOW TO USE ISOLATED AND CROSS MARGIN ON KUCOIN. Please note,Margin poolincludesMarginandUnrealized PNL. Your personal information will be kept confidential. Step 2: Transfer funds to your Futures wallet to start trading futures contracts. What is Futures? Cookie Notice SatsIncome.om 11.4K subscribers 72K views 1 year ago FREE Webclass FREE Webclass The SIMPLE Method I Used to turn $4,944 into. At the Price section, select the price you want to sell. A complete Kucoin Futures Trading Tutorial by James of MoneyZG. Tap into Futures---> Deduction Coupon in KuCoin app (orclickhere). To be specific, when the floatingPNL(namely, the unrealized PNL) is positive, the system will lower the actual leverage. Just set your leverage and begin trading, really convenient. Futures. New users should think twice before entering this risky financial trading form. Three is a level of risk with margin and futures trading hence a lot of decision and management needs to be considered . Therefore KuCoin Futures will NOT charge any fees. At Amount section, select the amount you want to sell. Trading Account Part 3. Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. These pairs can include top cryptocurrencies, and unlike futures, margin trading occurs directly on the spot exchange. At Price section, select the price you want to sell. To open a Short position on Kucoin Futures, select Limit order. I stopped using the margin account as soon as I got comfortable with Futures trading. Privacy Policy. On both Margin and Futures, users can use leverage. The company says lenders will always be repaid in full, either from the borrower's collateral or. 1. Despite their huge profit, they are also extremely risky, especially for inexperienced traders. The maximum leverage available on KuCoin futures is 100x, but users need to pass KYC first. The higher the actual leverage is, the higher risk of liquidation would be and vice versa. Try now to leverage more profits with less funds! Facebook Web App. Financial Account Part 1. 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. When the funding rate is negative, then vice versa. Your personal information will be kept confidential. KuCoin Withdrawal Fees. 400 million Twitter user data for sale on the black market? If there is no funds left to deposit, the system will help you liquidate the position and you will burn your account. This mechanism makes it easier for you to control risk and lower risk than Cross Margin. Margin: The margin is used in opening a position or maintaining your current position, which is formed byInitial Margin andMaintenance Margin. Once you have enabled margin trading, there are 4 steps you must know to complete a margin trade: 1. For example, you invest $300 and the Margin balance in your Futures/Margin wallet account has $3,000. It's basically margin but with less friction (steps to take before being able to trade). 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%. 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. Mark price:This system sets the Mark Price of the Futures to the Fair Price. RSI Guy Banky 830 subscribers Subscribe 141 Share 17K views 1 year ago In this video, I explained briefly how to trade. and our If you deal with a risk, you only lose $200 and will not be deducted from the remaining $800 in your account. Learn more details about the Index price. Select the Margin account you want to use at Margin Account section. Futures Trading. 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. Futures trading is a 100x magnifier of your profits! Rewards will be provided to users who inform us of the above. They just get fees regardless. 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. KuCoin also provides futures trading where users can buy and sell crypto futures standardized contracts. If the leverage is high, please pay attention to the position risk. To have a better understanding of Kucoin Futures, lets assume that you anticipate the price of Bitcoin to rise, you execute a long order. In addition to the basic trading options, the platform also, If you dont have a Kucoin trading account yet, read the. For example: Futures/Margin wallet balance is $1000, you open a Short TRX position with the amount of $200. First, select Transfer. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Well there you have it. For newbies: Debt Ratio is the Key to Affect Your Profit or Loss, 1. In the Price section, select the price you want to buy. If the leverage is high, please pay attention to the position risk. Select the amount you want to trade at Amount section. (APP Version). They shut down futures without warning *intentionally.*. 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. All Rights Reserved. If you want to withdraw or make P2P trades, please keep your assets in your Main account. Please click, . When user B bears losses, the unrealizedPnLw. KuCoin is a cryptocurrency exchange with large trading volume and high liquidity. >>> Related: A complete guide to sign up for Binance account for newbies (20% Lifetime Trading Fees discount), What is BingX? Note that the higher the leverage, the higher the probability of increasing profits, but the risk is also very high. 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. 1.Unrealised PNL is also called floating PNL, which is the profit and loss of your current positions calculated based on the price gap between the average entry price and the mark price. Theactual leverage of the position can be regarded as abarometer of the position risk. Step 3: Select Trade Margin Trading, then choose the trading pair you want. Facebook icon (, If you want to lend your assets out, please keep the relative assets in your Main account) . Twitter icon The system will check the margin level of the Cross Margin Account and notify users about supplying additional margin or closing positions. Emirex vs KuCoin Futures (2023) - List of Differences | Cryptowisser rading account directly or transfer the relative assets to your, rading account from other accounts. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Auto-Deposit MarginWhen Auto-Deposit Margin mode is enabled, funds in the Available Balance will be added to the existing position whenever liquidation happens, trying to prevent the position from being liquidated. comments . Floating leverage = Position value / Margin pool, A. Reddit and its partners use cookies and similar technologies to provide you with a better experience. he decrease of PNL, the margin pool will also reduce, which means the denominator of the formula becomes smaller, and thus the leverage increases. Itonly affects the liquidation price and unrealised PNL. Guide to sign up for BingX, Binance sign up and trading guideline for beginners, What is FTX? Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. Index price: The weighted price tracked from the spot prices of 6 exchanges. Your personal information will be kept confidential. Step 1: After successfully logging into your Kucoin account. 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. 4) Place your order. You may also visit this guide: Futures. Rewards will be provided to users who inform us of the above. The remaining amount is the profit. A. CopyRight 2017 - 2023 KuCoin.com. Select a coin contract you want to trade. However, in some cases it is also influenced by external factors (crowd psychology, economic policy, macro situation). All Rights Reserved. At Amount section, select the amount you want want to buy. Repay all the borrowed USDT as well as the interest. (Tips: If you want to lend your assets out, please keep the relative assets in your Main account) . Borrow funds from the Funding Market 3. Initial Margin is the minimum amount of funds you must deposit to open a position. Yah it takes practice to get good at it and unfortunately practice cost money. The funding rate represents the difference between the price of the perpetual contract market and that of the Spot market. USDT Isolated Margin Account, only BTC and USDT are accessible. KuCoin says you can earn 8% to 12% on average. 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). The funding will be settled at 20:00, 04:00, and 12:00 each day (UTC). When user B bears losses, the unrealizedPnLwill benegative. In isolated margin mode, the leverage is up to 10x and depends on the trading pair. The above article is Kucoin Futures and Kucoin Margin Trading Guide. Enable futures trading now to claim up to 20 USDT ofbonus for newbies only! Newbies Must Read 02: Actual Leverage - Key of Controlling Futures Trading Risks. Watch on 1. 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. When the funding rate is positive, holders of long positions pay for those of short positions. Please click, Main & Trading & Margin & Futures & Financial Account, Recommended videos for new users from Youtube. When the funding rate is positive, holders of long positions pay for those of short positions. Try now to leverage more profits with less funds! This feature has been officially launched already, and you can visit the Trading Bot on the KuCoin App to find it. For more information, please see our Pros and cons of Kucoin Margin and Kucoin Futures, Advantages of Kucoin Margin and Kucoin Futures, Disadvantage of Kucoin Margin and Kucoin Futures. Futures trading has a lot better UI, PNL is included. I finally found one that does futures that is an A-book exchange instead of B-book like 99% of crypto platforms. : This article is based on buying long in a margin trade. Main Account Part 2. Whats the benefits of using margin instead of futures? Futures trading has a lot better UI, PNL is included. I won't feel sorry for anyone getting liquidated by margin trading on KuCoin after these past weeks of "temporary downtime upgrades". Completing a set of margin trade . When user A earns profit, the unrealized PNL, ecome greater as well, which means the denominator of the formula becomes large, B. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Whats the benefits of using margin instead of futures? This article will help beginners of Futures trading to know about the related introductory knowledge and to start the trading journey smoothly. Margin is a double-edged sword. 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). Differences Between Isolated Margin and Cross Margin, Margin Trade: Spot Index Calculation Rules. Email Instead of fiat currencies or other cryptocurrencies, KuCoin Futures handles Bitcoin/ETH only, and all the profit and loss are in Bitcoin/ETH/USDT. Crypto lending and borrowing is an intuitive way of earning passive income in the crypto market . Please click here to start margin trading and click here to enter the Margin help center to learn more. Reward amounts will be determined based on the type and relevance of the information provided. All Rights Reserved. Diversify your portfolio, you will have more investment options. YouTube When it comes to investing in futures, there are two main types of margin: isolated and futures. You make a profit by placing orders and predicting the rise or fall of the price of a contract representing a cryptocurrency over a certain period of time. Investors can close their long positions before the time of settlement to avoid paying the funding. Margin in cross margin mode is shared among the users Margin Account, Each user can only open one cross margin account, and all trading pairs are available in this account.