Futures trading allows buyers and sellers to agree on a future transaction of an asset at a predetermined price and quantity, aiming to profit from market movements. This form of trading is widely used in the digital asset space and comes in two main types: delivery contracts and perpetual contracts. Traders can open long positions to benefit from rising prices or short positions to profit from falling markets.
Understanding how to navigate futures trading—whether through a mobile app or web platform—is essential for both beginners and experienced traders. This guide walks you through the complete process, from account setup to executing trades, with clear steps and expert insights.
Understanding Contract Types
Before placing any trade, it’s crucial to understand the two primary types of futures contracts available:
Perpetual Contracts
Unlike traditional futures, perpetual contracts have no expiration date. You can hold your position indefinitely and close it whenever you choose. These are ideal for traders who want flexibility without worrying about settlement dates.
Delivery Contracts
These contracts come with fixed delivery dates—such as weekly, bi-weekly, quarterly, or next-quarter cycles. When the contract reaches its maturity date, all open positions are automatically settled by the system, regardless of profit or loss.
👉 Learn how to start trading perpetuals with low fees and deep liquidity.
Choosing Your Margin Type
Your choice of margin type affects how your collateral is managed and how profits and losses are calculated.
USDT-Margined Contracts
In this model, USDT serves as the collateral for your trades. As long as you have USDT in your account, you can trade multiple cryptocurrencies under the same margin system. Profits and losses are settled in USDT, making it easier to track performance across different assets.
Coin-Margined Contracts
Here, the underlying cryptocurrency itself acts as collateral. For example, if you're trading BTC/USD, you must hold BTC in your account. Both your margin and P&L will be denominated in BTC.
This distinction is vital when managing risk and calculating potential returns.
Full vs. Isolated Margin Modes
Margin mode determines how your collateral is allocated across positions.
Full (Cross) Margin
All positions in your account share a common pool of margin. Gains from one trade can offset losses from another, increasing capital efficiency. However, this also means a single losing position could impact your entire portfolio.
Isolated Margin
Each position has its own dedicated margin. Risks and rewards are contained within individual trades, offering better control over leverage and liquidation thresholds. This mode is preferred by traders who want strict risk boundaries per trade.
Choosing between these modes depends on your risk tolerance and trading strategy.
Step-by-Step: How to Start Trading on Mobile App
Follow these steps to begin futures trading via the mobile application:
Transfer Funds
Go to the [Trade] tab and tap the transfer button. Select the desired currency, then move funds from your funding account to your trading account.- For USDT-margined contracts: Transfer USDT
- For coin-margined contracts: Transfer the corresponding cryptocurrency (e.g., BTC, ETH)
- Select a Trading Pair
Tap the pair selector in the top-left corner. Use the search bar to find your preferred asset (e.g., BTC-USDT). Choose the contract type (perpetual or delivery) and margin type (USDT or coin-based). - Choose Margin Mode
Decide whether to use cross or isolated margin for your position. Place Your Order
Enter trade details such as size and leverage. Then select:- Buy Open Long: To go long, expecting price increases
- Sell Open Short: To go short, anticipating price declines
After opening a position, monitor it under the [Positions] tab. Here, you can set take-profit and stop-loss orders or manually close the trade when ready.
Step-by-Step: Web Platform Trading Guide
The web interface offers advanced tools and real-time data visualization for more strategic trading.
- Log In and Navigate to Trading
After logging in, click [Trade] > [Futures Trading] to access the futures market. - Fund Your Trading Account
Transfer assets from your funding wallet to your trading wallet. Specify the amount and confirm the transfer. - Pick Your Contract
Use the search function or browse available pairs. Select your preferred contract type and margin type. Open a Position
Under the order panel:- Choose between cross or isolated margin
- Input trade size and leverage
- Click [Buy Open Long] or [Sell Open Short]
Once active, your position appears in the [Positions] section. You can track unrealized P&L, margin ratio, and liquidation price in real time.
👉 Access advanced charting tools and real-time market depth for smarter entries.
Risk Management: Avoiding Liquidation
Proper risk management is key to long-term success in futures trading.
Maintenance Margin Ratio Alerts
- When your maintenance margin ratio ≤ 300%, the system issues a warning—this is your signal to reduce exposure.
- If it drops to ≤ 100%, forced liquidation may occur. Orders are canceled, and positions closed automatically.
To avoid this:
- Monitor your margin levels closely
- Use stop-loss orders effectively
- Avoid over-leveraging, especially in volatile markets
Key Notes on Margin Systems
- In isolated margin mode, positions under single-currency and cross-currency modes operate independently.
- In cross margin mode, single-currency positions share margin within the same settlement currency.
- In cross-currency margin mode, all assets are converted into USD equivalents based on current rates to serve as shared collateral.
- With auto-borrow enabled, you don’t need to hold USDT or base coins upfront—you can still trade both USDT-margined and coin-margined contracts seamlessly.
Frequently Asked Questions (FAQ)
Q: What’s the difference between opening a long vs. short position?
A: Opening a long ("buy open long") means you expect the price to rise. Opening a short ("sell open short") means you anticipate a price drop. Both aim to profit from price differences but in opposite directions.
Q: Can I switch between isolated and cross margin after opening a position?
A: No—once a position is opened under a specific margin mode, you cannot change it. Always confirm your settings before placing an order.
Q: Do I need to own Bitcoin to trade BTC futures?
A: Not necessarily. With USDT-margined contracts or cross-currency margin with auto-borrow enabled, you can trade BTC without holding BTC directly.
Q: When are delivery contracts settled?
A: Delivery occurs automatically at the contract's expiry—weekly, bi-weekly, or quarterly—based on the average price over a defined period before settlement.
Q: How is profit calculated in coin-margined contracts?
A: Profits are denominated in the base coin (e.g., BTC). For example, if you profit 0.05 BTC on a BTC/USD trade, that amount is added directly to your BTC balance.
Q: Is perpetual contract funding cost high?
A: Funding rates are typically small (often <0.1% per interval) and paid every 8 hours. They help align perpetual prices with spot markets and can be positive or negative depending on market sentiment.
Final Tips for Successful Futures Trading
- Start small and gradually increase position size as you gain experience.
- Use technical analysis and market sentiment to time entries and exits.
- Keep up with macroeconomic news that impacts crypto markets.
- Regularly review your open positions and adjust stop-loss/take-profit levels.
👉 Start practicing with a demo account and master futures trading risk-free.
By mastering the fundamentals of contract types, margin systems, and risk controls, you’ll be well-equipped to navigate the dynamic world of futures trading—whether on mobile or desktop.
Core Keywords: futures trading, perpetual contract, delivery contract, USDT-margined contract, coin-margined contract, cross margin, isolated margin, maintenance margin ratio