Futures trading on Cryptology.com

July 20, 2020 —

Futures trading is one of the types of profit-making on the exchange. Future Contracts are contracts to buy or sell an asset on a specific date at a specified price. As a rule, we are talking about the current market value. The underlying asset of trade may be stocks, bonds, currency (including cryptocurrencies), “rates” for weather, inflation, and other economic/social/environmental indicators.

Types of Futures

In practice, the following types of futures contracts are distinguished:

1. expiration futures;

2. perpetual futures.

📌 Perpetual futures are futures contracts that do not expire, which means you may hold a position for an indefinite period of time and close the position at any time. 

📌 On the contrary, expiration contracts can be traded for a specific amount of time. This contract then expires and cannot be traded anymore.

The most attractive features of futures trading are:

• The ability to instantly conclude a transaction.
• Simple settlement system.
• Admission to the exchange of companies and individuals that do not have exchange assets.

Trading is carried out according to a standard contract, there can be no “surprises”, as well as inconsistent changes in the conditions of cooperation. The trader chooses leverage at his own discretion, its size significantly exceeds the maximum for working directly with the underlying asset, but the increased risks should be taken into account when choosing large leverage — quick enrichment can easily turn into an instant loss of the entire deposit.

How to make a profit by trading crypto futures? 

💰 Leverage Trading

Leverage trading is a system that lets traders open positions much larger than their own balance. The only thing traders need to do is to invest a certain percentage of the position. 

Your successful trade was closed and you got a profit of $200. If you had applied leverage of 1:10, you would have earned $2,000 from the same transaction using exactly the same strategy. As you see, trading with leverage can significantly increase your profits without investing more than your own funds.

💰 Shorting

Shorting is an investment or trading strategy that speculates on the decline in the price of an asset. The trading position in the terminal is called short. It is also called ‘bearish strategy’. 

Let’s say the current price of BTC is $10,000. You think the price will go down in the future. You have $100 in your futures account. You open a position with x100 leverage and sell 10,000 contracts (of $1 each). 

Your position is filled. So now it’s time to wait. The price drops to $9,000. You can now close your position and take your profit or wait. Let’s say you close your position. Your end result will be your $100 plus your profit of $900.

What futures contracts pairs does Cryptology have?

The Cryptology trading platform offers the following Futures Contracts pairs. 

💵 BTC/USD

💵 ETH/USD

💵 TRX/USD

💵 BCH/USD

💵 LTC/USD

💵 EOS/USD

💵 XLM/USD

💵 ZEC/USD.

The trading platform constantly increases the number of available Futures contracts.

Advantages of Futures Contracts trading on the Cryptology.com:

Zero commissions on all the deposits on Futures trading

A large amount of Futures Contracts pairs

Crypto/credit cards deposits

Different layouts for your convenience

How to start trading Futures Contracts?

Go to Cryptology.com 

Sign in or create an account

Choose “Futures” at the top of the platform

Click “Deposit” to deposit your funds.

Verify your mail if you have not done it before, and press “Ok”.

Deposit your assets.

Make an order.

Congratulations! Your order has appeared at the bottom of the platform. 

If any point is still unclear now, you can follow this guide: How to trade Futures Contracts on Cryptology.

Take care of your future and trade futures with Cryptology! 

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