So why use the margin account at all? : This article is based on buying long in a margin trade. All Rights Reserved. In this video I will show you step by step process to enter short positions. Scan the QR code to login KuCoin, From now on, you can market ticker in real time. For more information, please see our Note that trading on margin can exacerbate losses and should only be used by experienced traders who understand and can afford the risk involved. Rewards will be provided to users who inform us of the above. 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. Your personal information will be kept confidential. Funding is charged peer to peer between traders. The funding rate represents the difference between the price of the perpetual contract market and that of the Spot market. Reward amounts will be determined based on the type and relevance of the information provided. This money finances KuCoin's margin trading. 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. When the funding rate is positive, holders of long positions pay for those of short positions. It's basically margin but with less friction (steps to take before being able to trade). comments . 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. 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. With the decrease of PNL, the margin pool will also reduce, which means the denominator of the formula becomes smaller, and thus the leverage increases. The deduction coupon can be used to deductFutures trading fees of random amount. Future vs Margin - Fee comparison . Users are able to access to greater capital so they will be in a greater position. Part 1. This mechanism makes it easier for you to control risk and lower risk than Cross Margin. 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. Unrealised PNL: The unrealised PNL is based on the difference between the average entry price and mark price. CopyRight 2017 - 2023 KuCoin.com. Index price: The weighted price tracked from the spot prices of 6 exchanges. 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%. All Rights Reserved. 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. Step 5: To cancel the order just placed, select Open Order click Cancel. Email Lets go and see the functions of each account. Enable futures trading now to claim up to 20, utures trading and profits generated from it can be transferred or withdrawn! KuCoin offers users exclusive fee rates for Futures trading and 0% or low interests on Margin loans through its VIP Privilege. Kucoin Futures and Kucoin Margin Trading Guide, A complete guide to sign up for Binance account for newbies (20% Lifetime Trading Fees discount). Please click, . Open a sell position by placing an Limit order. (APP Version). Realised PNLis not affected. RSI Guy Banky 830 subscribers Subscribe 141 Share 17K views 1 year ago In this video, I explained briefly how to trade. Crypto lending and borrowing is an intuitive way of earning passive income in the crypto market . When the market price matches the selected price, the system will automatically execute the order. Just set your leverage and begin trading, really convenient. Initially, KuCoin launched what was known as KuMEX. Borrow funds from the Funding Market 3. Step 3: Select Trade Margin Trading, then choose the trading pair you want. 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. What is margin? 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%. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Realised PNL: This is based on the difference between the entry price and close price of a position. Rewards will be provided to users who inform us of the above. Floating leverage = Position value / Margin pool, A. YouTube Futures Trading. They will have an amount of funds to trade many times larger than the amount of capital. Select the Margin account you want to use at Margin Account section. Privacy Policy. 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. 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. Initial Margin is the minimum amount of funds you must deposit to open a position. Trading Account Part 3. Rewards will be provided to users who inform us of the above. Rewards will be provided to users who inform us of the above. For newbies: Debt Ratio is the Key to Affect Your Profit or Loss, 1. Privacy Policy. A complete Kucoin Futures Trading Tutorial by James of MoneyZG. 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. #kucoin #futures #leveragetrading #daytrading https://twitter.com/MarkTheDGTWhat's up fellow GRINDERS? KuCoin is a cryptocurrency exchange with large trading volume and high liquidity. Margin Account Part 4. We highly recommend newbies to control the leverage within 5x. and our Trade: Let's buy long using BTC with the BTC/USDT trading pair as an example, using the borrowed USDT to buy BTC. To open a Short position on Kucoin Futures, select Limit order. Click on the wallet icon select Main Account. Futures Account Part 5. Security Aside from that, KuCoin cares greatly about the security of its users. Whats the benefits of using margin instead of futures? Collateral = Initial Margin + Realized PNL + Unrealized PNL < Maintenance Margin. To have a better understanding of Kucoin Futures, lets assume that you anticipate the price of Bitcoin to rise, you execute a long order. They shut down futures without warning *intentionally.*. You know? Isolated Margin Kucoin is a mechanism that limits the amount of coins traded each transaction. The ADL mechanism has protected users from losing extra margins in their account if their position is being liquidated and also avoided the inflexibility over the settlement in the Socialised Loss mechanism. In Amount section, select the amount you want to buy. Tonight I'm going to go over all the similarities and differences between trading on Futures and Cross Margin. As mentioned, KuCoin has some of the lowest trading fees, even among top exchanges. Find the next crypto gem on www.kucoin.com, People's Exchange. Your personal information will be kept confidential. 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. Cookie Notice However, when the floating PNL (namely, the unrealized PNL) is negative, the system will raise the actual leverage. 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. Mark price:This system sets the Mark Price of the Futures to the Fair Price. 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. FTX review 2022: FTX sign up for beginners, What is Opensea? Yes, users can use margin trading, futures or leveraged tokens, which allows them to use leverage. The system will check the margin level of the Cross Margin Account and notify users about supplying additional margin or closing positions. 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. Could someone please explain to me the differences between margin and futures trading on kucoin. Users can transfer their assets via the transfer option on the Assets Overview page. When it comes to investing in futures, there are two main types of margin: isolated and futures. Margin: The margin is used in opening a position or maintaining your current position, which is formed by Initial Margin and Maintenance Margin . In addition, KuCoin supports 35 trade pairs with up to 10X leverage. This article will help beginners of Futures trading to know about the related introductory knowledge and to start the trading journey smoothly. The information is updated on a monthly basis. Cookie Notice Also, users can do that on each account page. Changes in prices will be often affected by supply and demand. 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. Bonus can be used inFutures trading and profits generated from it can be transferred or withdrawn! This is called Call Margin. KuCoin Withdrawal Fees. Please note,Margin poolincludesMarginandUnrealized PNL. In addition to the basic trading options, the platform also, If you dont have a Kucoin trading account yet, read the. Reward amounts will be determined based on the type and relevance of the information provided. Futures trading has a lot better UI, PNL is included. KuCoin Futures Trading Fees. because some peeps got liquidated on the futures and scared to repeat it again. Short coins are available on KuCoin for a fee of sixty to ninety dollars. When the positionsof. Go to kucoin r/kucoin Posted by Charkel_ View community ranking In the Top 1% of largest communities on Reddit. Using Cross Margin helps you make huge profits. Facebook icon When the market price matches with the selected price, the system will automatically execute the sell order. Click on the wallet icon, select Main Account. No borrowing funds and repaying. Maintenance Margin is the minimum amount of funds you must hold to keep a position open. 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. The Futures has no expiration date and is designed to closely track the underlying reference Price Index via the Funding Rate mechanism. 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. Margin Trading. you canonlyoperateineach tradingpairindependently. 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. Reddit and its partners use cookies and similar technologies to provide you with a better experience. No borrowing funds and repaying. Press question mark to learn the rest of the keyboard shortcuts. To short on Kucoin margin, you will need to: 1) Find the instrument you want to short on the Kucoin platform. When the funding rate is positive, holders of long positions pay for those of short positions. Once liquidation happens, it will not affect other isolated positions. Note: A margin trade works exactly the same as a spot trade and they share the same market depth. If the leverage is high, please pay attention to the position risk. 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. This is Kucoins trading platform for investors who want to bet on the future of an asset. Close position: When the BTC price goes up, you can sell the BTC you bought before back to USDT. Despite their huge profit, they are also extremely risky, especially for inexperienced traders. KuCoin Futures has an adjustable interest rate because the funding cost can be higher or lower. 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. KuCoin Futures will airdrop bonus to all users! now to claim the bonus! Futures. Compare Margin and Future. The company says lenders will always be repaid in full, either from the borrower's collateral or. Emirex vs KuCoin Futures (2023) - List of Differences | Cryptowisser First, select Transfer. Futures trading has a lot better UI, PNL is included. 3) Enter your desired leverage. If your margin account does not have enough USDT to repay, you may sell other tokens to USDT, and then click the Repay button to repay. Kucoin Margin Vs Futures There are a few key differences between Kucoin margin trading and futures trading. I stopped using the margin account as soon as I got comfortable with Futures trading. 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 is well-known in the cryptocurrency industry for its low withdrawal fees. New users should think twice before entering this risky financial trading form. 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. Margin is a double-edged sword. How Margin Trading differs from Futures Trading. Step 2: To start Margin trading, you must transfer funds to Margin wallet. rading account directly or transfer the relative assets to your, rading account from other accounts. What is Futures? 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. CopyRight 2017 - 2023 KuCoin.com. KuCoin Futures will airdrop bonus to all users! Financial Account Part 1. 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. 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. You may also visit this guide: Futures. For more details, please checkKuCoin Futures Trial Fund. Stop loss: when the market price drops to the price you want to stop loss, the system will automatically sell immediately. This mode is useful for users who are hedging existing positions. Select a coin contract you want to trade. Crypto Lending and Borrowing. Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. Calculation formula: Funding = Position value * Funding rate, Position Value = Lots x Mark Price x Multiplier, Position Value = (Lots / Mark Price) x Multiplier. This deep dive will give you the basic understanding of both Futures Trading, and Cross Margin Trading, and allow you to choose which is best for your goals.Thanks for watching,-Mark The DGT We have gathered some of the best merchants that accept crypto in one place. 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. A Futures in KuCoin Futures is an agreement to buy or sell a particular crypto asset at a predetermined price and a specified time in the future. (Web Version), How to trade Futures at KuCoin Futures? Step 5: To cancel the order just placed, choose Open Order and click Cancel. 400 million Twitter user data for sale on the black market? >>> Related: A complete guide to sign up for Binance account for newbies (20% Lifetime Trading Fees discount), What is BingX? Pros and cons of Kucoin Margin and Kucoin Futures, Advantages of Kucoin Margin and Kucoin Futures, Disadvantage of Kucoin Margin and Kucoin Futures.