From the LBank blog.
The cryptocurrency market is dynamic and ever-changing, with traders looking for new ways to capitalise on market trends and fluctuations. One such opportunity is crypto futures trading, which allows traders to speculate on the future value of cryptocurrencies without owning the underlying asset.
As an aspiring futures trader, you have the potential to earn profits by participating in market movements through long or short positions on futures contracts.
To go long, you can purchase a futures contract in anticipation of its future value increase. Contrarily, a trader sells a futures contract to go short and bet on declining future prices.
LBank, a global cryptocurrency exchange, offers traders a platform for crypto futures trading, and in this article, we’ll explore the facts about derivatives on LBank.
Facts you need to about LBank Futures
LBank also offers a wide range of options and products for traders. On LBank, traders can trade with leverage between 20–125x on its perpetual crypto contracts across 100+ cryptocurrencies. The maximum leverage available for users depends on their notional position value.
At the moment, traders have to select their leverage themselves. If the trader makes no selection on leverage, the trade will be automatically set at 20X by default.
LBank supports high leveraged transactions through complex risk control engines and settlement models. The exchange uses mark price to avoid unnecessary liquidations and to tackle market manipulation.
The Futures platform offers four types of orders: limit order, market order, stop-limit order, and stop-market order.
The stop order on LBank combines a stop loss order and a take profit order. When the order is placed, the system will decide whether an order is a stop loss order or a take profit order based on the trigger price level against the last price or mark price.
Traders can also choose between two position modes: One-way mode and Hedge mode. One-way mode allows users to hold positions in only one direction under one contract. In contrast, Hedge mode will enable users to set long and short positions under the same contract simultaneously.
Traders can also choose between cross or isolated-margin mode, which offers more flexibility and allows traders to use their entire account balance to maintain their positions. Isolated margin mode, on the other hand, will enable traders to set a specific margin for each position, reducing the risk of liquidation.
The stop order on LBank Futures combines a stop loss order and a take profit order. The system automatically decides whether an order is a stop loss or a take profit order based on the trigger price level against the last price or mark price when the order is placed.
How do I start Trading Futures on LBank?
To start trading futures on LBank, traders must create an LBank Future account and complete the necessary verifications. Once the account is verified, you must transfer funds to your futures wallet.
If you’re interested in trading futures on our LBank Futures platform, please follow these simple steps:
Step 1: Deposit USDT into your Futures account as a margin.
Step 2: Choose your preferred level of leverage.
Step 3: Select the appropriate order type, whether it be to buy or sell.
Step 4: Specify the number of contracts you want to own.
Crypto futures trading is a complex and risky investment opportunity that requires careful consideration before diving in. Traders need to understand the basics of futures trading, including its benefits, potential benefits, and significant risks. While futures trading may offer the potential for high returns, traders must approach it with caution.
Disclaimer: Derivatives are often volatile, and this can be a risky investment. The information provided in this article is solely for educational purposes and shouldn’t be regarded as financial advice.
This article came directly from the LBank blog, found on https://lbank-exchange.medium.com/the-ins-and-outs-of-crypto-futures-trading-on-lbank-exchange-1142ca13a46d?source=rss-87c24ae35186——2