Beginner’s Guide to Futures Trading (Website) #
In futures trading, you can participate in market movements and make a profit by going long or short on a futures contract. By going long, a trader buys a futures contract with the expectation that it will rise in value in the future. Conversely, a trader sells a futures contract to go short, to bet on prices to decline in the future. On our idax Futures platform, you can go long or short with leverage to reduce risk or seek profits in volatile markets. Follow these steps to start trading on our idax Futures platform:
- Deposit USDT into your Futures wallet
- Select the level of leverage to your preference
- Choose the appropriate order type (buy or sell)
- Indicate the number of contracts you wish to own
Here’s an example of how you can profit by going long or short on a futures contract:
Going long on BTC/USDT:
| Contract size | Entry price | Exit price | Profit and Loss |
|---|---|---|---|
|
1 BTC |
5000 USDT |
5500 USDT |
500 USDT |
Going short on BTC/USDT:
| Contract size | Entry price | Exit price | Profit and Loss |
|---|---|---|---|
|
1 BTC |
5000 USDT |
4500 USDT |
500 USDT |
In spot markets, traders can only profit when the value of an asset increases. In contrast, through futures trading, you can profit in both ways as the value of an asset rises or falls.
Futures Trading
- Users choose Mark price as price basis:
Unrealized PNL = position size * direction of order * (mark price – entry price)
ROE% =Unrealized PNL in USDT / entry margin = ( ( mark Price – entry Price ) * direction of order * size ) / （position_amount * contract_multiplier * mark_price* IMR）
*IMR = 1/Leverage
- Users choose latest price as price basis:
Unrealized PNL = position size * direction of order * (latest price – entry price)
ROE% = Unrealized PNL in USDT / entry margin = ( ( latest price – entry Price ) * direction of order * size ) / （position_amount * contract_multiplier * mark_price* IMR）
Direction of order: 1 for long order；-1 for short order
How to Transfer Funds to the Futures Wallet #
To start trading on idax Futures, you need to transfer funds from your Fiat and Spot Wallet to your Futures Wallet first.
To transfer funds to the Futures Wallet, please ensure that you are on the Futures trading interface.
Please take the following steps:
- On the Futures trading interface, scroll down to locate the [Assets] widget on the bottom-right of your screen. Next, click [Transfer].
- Select the type of assets you want to transfer into your Futures account. idax Futures supports a wide range of crypto assets as collateral. You may deposit assets such as USDT or supported cryptocurrencies (i.e Bitcoin and Ethereum). Enter the amount and click [Confirm].
- Once your assets are successfully transferred to your Futures Wallet, you can check the available balance under [Assets].
- If you want to transfer the available amount in your Futures account to your Fiat and Spot Wallet, click on the [Swap] icon to change the transfer destination. Enter the amount you wish to transfer out and click [Confirm].
How to Check Futures Wallet Balance #
You can check your wallet balance in two sections on the futures trading interface. The first section is on the Order Entry Panel (labeled point 1 as shown on the screenshot below). The second section is on the [Assets] widget, located on the bottom-right of your trading interface.
- On the [Assets] widget, you can view the balances of different assets in your Futures Wallet. For USDT Futures, you will be able to view balances in USDT
- Alternatively, you may click on [Wallet] to check your Futures Wallet balance.
- Margin balance factors in unrealized P&L, and as such, the margin balance will fluctuate in real-time if there are open positions.
- To view the balance of each asset, click on the [Assets] tab.
Notes:
- For USDT Futures: Available for Order = max(0, crossWalletBalance + ∑cross Unrealized P&L – (∑cross initial margin + ∑isolated open order initial margin)
- Isolated open order initial margin = abs(isolated present notional) * IMR – abs(size) * IMR * mark price
- Isolated open order initial margin = abs(isolated present notional) * IMR – abs(size) * contract Size * IMR / mark price
- Balance (i.e. Wallet Balance): Wallet Balance = Total Net Transfer + Total Realized Profit + Total Net Funding Fee – Total Commission
How to Select Trading Pairs #
Go to the Futures trading interface and click on the futures contract symbol to open the search box.
- There are 2 types of futures contracts: USDT-Margined Futures and Coin-Margined Futures. Select your preferred futures contract. For example, if you want to trade BTCUSDT perpetual contracts, click [USDT].
- Select the contract symbol you want to trade. You may rank all listed symbols based on volume or 24-hour price change.
- Alternatively, you can search for a specific crypto futures contract using the search bar. For instance, if you search for “XRP”, all XRP contracts (Quarterly or Perpetual) will be displayed in the dropdown menu.
How to Use idax Futures Calculator #
You may use the idax Futures Calculator to calculate the initial margin, profit & loss (PnL), return on equity (ROE), and liquidation price before placing any orders.
- Click on the [Calculator] icon located on the Order Entry Panel (right-side of the futures trading interface).
- You can choose [PNL], [Target Price], [Liquidation Price], [Max Open], or [Open Price].
- Select [Long] or [Short]. Next, enter the entry price, exit price, and quantity of your order. You can choose the leverage level by moving your cursor along the slider bar.
- Click [Calculate]. The result for the initial margin, PnL, and ROE will be displayed on the right.
Notes for calculating P&L, initial margin, and ROE:
USDT-Margined Contracts
Initial Margin = Quantity * Entry Price * IMR
IMR = 1 / leverage
