KuCoin futures trading

Futures and Perpetual Trading in KuCoin4 min read

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KuCoin can be regarded as one of the successful exchange platforms among thousand of exchange platforms that are available in the market. various factors have made this exchange one of the best in the market, one of those factors is its comprehensive features besides the security and the low fees.

In the following text, we are going to read about futures and perpetual contracts. they might seem complicated at first but when you get familiar with them and you become experienced in it you see how easy it was.

What is KuCoin Futures?

KuCoin futures is an advanced cryptocurrency trading feature that is part of the whole Kucoin cryptocurrency exchange.

Futures contracts are derivative products that allow users to enter in the contract or deal for a preset date and price. It has some advantages for traders. Traders can place some positions that are so higher than what is available now. Trade both advantages and drawbacks movements of the market, and the risks that are threatening the cryptocurrency positions.

Users are enabled to trade for both long and short positions. There are also enable to leverage the funds to increase the size of the position.

KuCoin provides 3 types of future platforms; futures Lite, Futures Pro, and Futures Brawl.

Futures Lite of KuCoin

This version is a simple version of the futures platform, its purpose is to facilitate the process for them and leave an enjoyable experience for them. It achieves this goal by removing some aspect of the user interface which minimize the complexity of the position they make.

Futures Pro

KuCoin Futures pro is a comprehensive cryptocurrency derivative trading platform that offers various popular leveraged crypto Futures products with high-level security.

Futures pro adds extra features to the lite version features that are already available in that version. This package offers more features for traders who have experience working with futures trading. In other KuCoin future pro is the lite version with more comprehensive features.

Futures Brawl

Futures brawl enables users to join teams and compete against other users and claim more points.  Futures Brawl offers prizes pools and rewards that can be earned by the users.  It has tried to turn the futures contract trading into a game and give a fun side to future trading.

Leverage trading

All of the KuCoin futures tradings offer leveraged trading. It means that a user can borrow money from the platform to increase the size of the position that a trader wants to open or enter.

The fees of futures trading

You can trade most of the popular cryptocurrencies such as Bitcoin, ethereum, Solana, fantom, and so many others.

The trading fees for KoCoin futures trading are mentioned below:

For the maker, the trading fee is 0.02%

And for the taker is 0.06%

Advantages and disadvantages of KuCoin futures trading

Advantages:

  • KuCoin offers the lowest fees for futures trading in the current market
  • Kucoin supports various kinds of cryptocurrencies
  • Users can increase the exposure with futures contracts without large funds.

Disadvantages:

  • One side of the ability to increase the size of the position will also increase the risk of being liquidated can be regarded as the cons of this method.
  • In comparison to spot trading, the failure of the system will increase the possibility of significant loses

Types of KuCoin future contracts:

  1. Delivery contracts
  2. Inverse
  3. Linear contracts
  4. Perpetual contracts

Here we are going to talk about the KuCoin perpetual contracts.

What is the perpetual contract?

The perpetual contract is a financial derivative product that is similar to the futures contract with few differences

  • There is no expiry date
  • A perpetual contract is similar to a margin-based spot market.

Like all the other ways if a trader wants to start trading there are some factors a trader must pay attention to when they are trading with perpetual contracts.

More than 60 perpetual contract products are available in KuCoin to choose from.

Marketing method:

The perpetual contract is set according to fair price marketing.

Initial Margin and Maintenance Margin:

These two define how much leverage a trader can trade with, and what point the liquidation occurs.

Funding:

This is a periodical payment exchange between the buyers and the sellers every 8 hours. If the rate for the funding is positive, then the buyers will pay and sellers will receive the rate and if the rate is negative the sellers should pay and the buyers will receive.

If you are thinking of developing an exchange and you want to develop an exchange with all the features that are available in Kucoin exchange, the KuCoin clone script is a good choice for you also you can ask the cryptocurrency exchange software development company to add other features that you want to your exchange platform.

If any other questions cross your mind do not hesitate to comment down below or contact us. our specialist will help you. Keep in touch we will write more about different subjects.

 

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