Crypto Futures Trading

Trade on the most user-friendly platform with no hidden commissions
The crypto industry offers investors many opportunities to generate profits, but Bitcoin futures trading is one of the most popular. Below, we have compiled a guide on the best route to follow when operating with crypto futures, and the benefits of Margex, one of the safest, transparent, and user-friendly crypto derivatives platforms in the market.

Crypto Futures 101: What is and how does it work?

A futures contract is an investment product, a financial derivative that allows traders to profit from the performance of an underlying asset. A Bitcoin futures contract lets you track BTC’s price and take long (buy) or short (sell) positions.
A trader benefits if the underlying asset, in this case, Bitcoin or any other virtual currency, either appreciates (if you are long) or depreciates (if you are short). Some futures contracts have an expiration date while others can be traded in perpetuity.

Enter Crypto Markets

Crypto derivatives exchange Margex lets you trade Bitcoin futures with as much as 100x leverage, letting you turn capital into profits faster. This feature enables you to profit from any market conditions by taking a long or a short position while maintaining proper risk management.

User Convenience in Every Aspect

In addition, Margex received a nomination from Finance Magnates and was ranked as the top 4 crypto margin trading exchange. Margex is distinguished for being one of the most user-friendly platforms in the crypto industry.

Skill Gap is No More

This lets rookie and savvy traders quickly start trading bitcoin futures by using leverage with low margin requirements which can be readjusted at any point with the platform’s isolated margin.

Broad range of deposit options

Margex has a wide variety of deposit options ranging from BTC, Tether (USDT) in its most popular forms such as TRC-20 and ERC-20, ETH, USD Coin (USDC), Tron (TRX), and even synthetic versions of leading cryptocurrencies such as Wrapped Bitcoin (BTC).

Privacy Oriented

These virtual currencies can be used as collateral on Margex with no hidden commissions or shadow fees. The crypto exchange values the privacy of its users and allows them to trade without requiring them to provide personal information.

Everything at a Glance

Margex leaves everything out in the open for you as a trader, its interface displays your total Return On Equity (ROE) for all your trades, profit and loss (PnL), trading fees, and more. This data is available for users in real-time.

Masters of Risk Management

The platform has an innovative MP Shield™ AI-based system which removes the risk for price manipulation, and unfair liquidations of positions in case of sudden, unnatural, market moves. This ensures that the Bitcoin futures contracts always track the global spot price of the underlying asset.

Why is Margex the best choice to trade crypto futures?

Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface
Margex platform interface

How many types of crypto futures trading contracts exist?

Before you get into trading, you should be aware of the different types of crypto futures trading contracts, including Bitcoin. Each of them has its advantages and trade-offs.

Standard Bitcoin Futures Contracts

The most common type of futures contract. This type of contract provides traders with a timeframe or period of expiration upon which one of the parties must buy the underlying asset. These can be virtual currencies, precious metal, securities such as stock, or commodities, like gold.

These futures contracts are better suited for traders operating with low-volatility assets aiming at specific targets or for long term traders, depending on their expiration date.

Futures with physical delivery

Unlike standard and perpetual, futures backed contracts demand one of the parties involved in the transaction to physically receive the underlying asset. These types of contracts mainly operate as a hedge or for investors with a bullish stand on a sector to purchase an asset on sale today and selling for a profit tomorrow.

These futures products are best designed for investors or speculators with a private agreement with a second party, with the proper infrastructure to hold the underlying asset. The contract has expensive fees, such as carrying and delivery costs.

Perpetual Bitcoin Futures Contracts

Perpetual futures or perpetual swaps are the most common contracts in the crypto industry. Offered by Margex traders can long or short Bitcoin or other digital assets and benefit from bullish or bearish trends.

A perpetual futures contract lacks the trade-offs of other types of contracts and is more cost-efficient for the trader but can be risky depending on the amount of leverage and margin used to place the long/short order. In turn, they allow you to make relatively fast gains or losses.

Want to start trading Crypto Futures? This is how you can start

If you want to start trading Bitcoin futures with Margex, follow the steps below and you will be able to operate within a couple of minutes without having to complete a privacy-invasive KYC process.
Open an account
Deposit your trading funds
Start Trading
Placing an order
Open an account
Go to Margex’s registration page by clicking on the start trading button on the exchange’s landing page. Later, enter a valid email address and a password with around 8 to 30 characters, and confirm you are not a U.S. resident or living in any other country where the exchange does not provide services.
Deposit your trading funds
After that, as with any other crypto exchange, you will need to deposit funds into your wallet. You can do so by clicking on “Wallet” placed at the top side menu of the screen. Margex accepts deposits in credit card deposits or cryptocurrencies such as Bitcoin, Ethereum, USDT, USDC and more.
Start Trading
To take a long or short position, go to the top of the screen and press the Trade button. Therein, you’ll be able to see the trading pairs available on Margex, the different order types (limit/market/stop market) and select the amount of leverage.
Placing an order
Once you have selected your trading pair use a limit or market order to take a long or short position. The former order will open the long/short at a specific price that you chose , the latter will open the position at the current market price.
Filling out the order submission window is quite simple. Select the leverage you’re going to be trading with and enter your order quantity in USD, keeping in mind that leverage is already applied.
As an example, if your order size is $1000 and your leverage is set to 20x, your actual margin impact (the funds at risk) is $50. This means that you’re risking $50 to trade with $1000.

Bitcoin futures trading, What are its risks and advantages?

When trading crypto futures, consider the following advantages, and risks to preserve your capital and profit in any market condition.

AdvantagesRisks
Magnify Return on Equity by risking a small portion of your funds.
Market volatility could work in your favor, but also trigger your stop loss order or liquidate your position, depending on the amount of leverage used in the trade.
Make profits with relatively small market moves.
Poor risk management habits could result in heavy losses in a short span of time.
Add or remove collateral at any time by leveraging Margex isolated Bitcoin futures contracts.
Futures trading could require more management, depending on the trader’s strategy
Stop profit and take profit orders let you minimize losses and maximize gains semi-automatically.
Advantages
Magnify Return on Equity by risking a small portion of your funds.
Make profits with relatively small market moves.
Add or remove collateral at any time by leveraging Margex isolated Bitcoin futures contracts.
Stop profit and take profit orders let you minimize losses and maximize gains semi-automatically.
Risks
Market volatility could work in your favor, but also trigger your stop loss order or liquidate your position, depending on the amount of leverage used in the trade.
Poor risk management habits could result in heavy losses in a short span of time.
Futures trading could require more management, depending on the trader’s strategy

This is how to start trading crypto futures for free

Start Trading

Margex allows you to trade for free by participating in its referral program. If you invite friends into the platform, you will receive a fixed 40% every time they pay for a trading commission, which can be withdrawn or used to trade with.

This will help you earn daily payments in BTC while increasing your sources of passive income.. These codes can get you a considerable bonus to start with your Bitcoin futures trading journey.

The platform also grants you bonuses by participating in its events or by winning deposit bonuses after making a deposit for a fixed amount.

Start Trading

Trade fees and Funding rates:

Maker feeTaker fee
0.019% (for LIMIT orders)
0.060% (for MARKET orders)
Maker fee
0.019% (for LIMIT orders)
Taker fee
0.060% (for MARKET orders)

Understanding the cost and fee structure for Bitcoin futures trading

Start Trading

As mentioned, Margex aims to provide users with the most transparent and the fairest in the crypto market. The team behind the platform gives you all the necessary information for you to understand and easily find trading fees.

These are divided into trade fees (make and taker) and funding fees and can be visualized in the table below the chart. Maker fees are triggered when a trader places a delayed order (limit order) above the current price or below it while Taker fees are triggered when a trader places an order that is executed immediately (market order).

On the other hand, funding fees are calculated based on the number of long or short positions currently placed for a trading pair. If the number of longs surpasses shorts, the funding rates are positive, and negative if vice-versa. In the first case, when funding is positive, shorts pay a fee to maintain their orders open.

Start Trading

What you need to know before starting your crypto futures trading journey

Here is some additional information you need to know if you want to start trading bitcoin futures.

Liquidity assessment

The crypto market consists of over 20,000 cryptocurrencies . Many of them have low liquidity and are vulnerable to sudden market moves to either the upside or downside. This can jeopardize your position.

Fortunately, Margex only offers trading pairs with high liquidity, unlike its competitors. The platform has incorporated a solution that combines the liquidity of over 12 different providers This gives all traders an equal chance at making profits.

Diversifying your portfolio

When trading it is often best to take different positions across multiple assets to benefit from an upside (with a long position) or downside (with a short). Margex offers 5 highly liquid trading pairs: BTC/USD, ETH/USD, XRP/USD, LTC/USD, EOS/USD.

Market volatility

Despite their liquidity, Bitcoin and other large cryptocurrencies frequently see volatility which can operate in favor or in detriment of your portfolio. To turn said market volatility in your favor, set up your stop loss orders according to your strategy.
Frequently Asked Questions (FAQ)

What is a crypto futures contract?

A futures contract is a financial derivative which lets a trader to bet on the potential appreciation or depreciation of its underlying asset. Margex offers Bitcoin futures contracts and other crypto futures contracts as perpetual swaps.

How to trade crypto futures?

Open an account with crypto exchange Margex, deposit funds, go to the trade section and choose a trading pair. After that take either a long (buy) or short (sell). Select your leverage, the platform allows a minimum of 5x to 100x, set a stop loss or take profit order, and open your position.

How to trade crypto futures for free

Participate in Margex’s referral program and earn a 40% fixed percentage of every trading commission paid by your referrals.

This is how you can prevent losses when trading crypto futures

Most traders focus on making a profit, but long-term players understand the need to actively manage your risk to protect your capital and stay concise on your positions. Prevent losses by using the amount of leverage your portfolio can stomach, setting stop loss orders, and trading with highly liquid assets.

What are crypto options, a better tool than crypto futures?

Option contracts are another type of financial derivatives, investors can acquire a call (buy) or put (sell) position on an underlying asset. Traders benefit if the price of the asset trends up (calls) or down (puts). Options can be the perfect complement for your trading strategy as they provide a hedge against sudden market moves and could protect your portfolio from heavy losses.

Trading crypto futures for beginners, where to start

If you are a rookie trader, you can visit the following link and set up your account, and begin operating in minutes with Margex

How are your funds secured with a Margex account

The Margex platform has implemented a state-of-the-art security system complimented by a robust security layer which protects users’ funds. The system has passed internal and external security audits, and consists of two-factor authentication, an email confirmation with notifications and alerts, SSL encryption and overall encryption for all data, a 24/7 support chat, and a treasury department that verifies and processes transactions once per day.