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Ether Futures Guide: Trade ETH Perpetual Futures on BTCC Exchange
Here we’ll explain what Ether futures are, and how to use leverage in futures to amplify your returns, as well as giving a detailed guide on how to trade ETH futures on BTCC exchange.
Interested in trading ETH futures on BTCC exchange?
ETH Futures Contracts Listed On BTCC Exchange
Ether futures enable traders to take long (you profit when market goes up) and short positions (you profit when market goes down) on ETH. Futures have in-built leverage which acts as a multiplier to your returns. Currently, the following Ethereum futures contracts are listed on BTCC Exchange.
Ether Futures Contract Details
Description | ETH Perpetual |
Contract Name | ETHUSDT |
Max. Leverage | 100x |
Margin Currency | USDT |
Contract Type | Perpetual Futures |
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What is ETH Futures Trading?
ETH Futures is an agreement between two parties to buy or sell ETH at a predetermined future date and price. The futures contract derives its value from the underlying cryptocurrency, Ether in this case. Thus the price of a Ether futures contract moves broadly in sync with the price of ETH.
Trading futures is thus an alternative to actually buying or selling the underlying crypto (aka spot trading). In spot trading, you can make profit by buying Ether low and selling it at a high price. This trade however works only in a bull market, i.e. when Ether price is going up. However, in a bear market, there is no trade possible in spot trading. Furthermore, leverage trading is not possible in spot trading.
Trading ETH through futures offers several advantages over spot trading of Ether, namely ability to both long or short and get access to leverage.
Benefits of Ether Futures Trading
Trade Profitably in All Market Conditions
You can profit from rising ETH price by going long Ether futures. And, when ETH price is falling, you can make profits by going short. This feature of futures trading enable you to navigate all types of market conditions profitably. Compare this with directly buying Ether. When price is falling, you can either sell your Ether or suffer losses. In spot trading, there is no way of profiting from falling prices.
Risk Hedging
If you are a HODLer, you can still use futures to mitigate price risk. Say, you hold ETH. You can mitigate the risks you face when Ether is falling by going short Ether futures. In this case, a short futures position acts as a downside protection by effectively locking the $ value of your portfolio without the need for selling your Ether. Judicious use of futures as hedge can make you a better and stronger HODLer.
Use Leverage to Amplify Returns
Leverage enables you to open positions that are bigger than your trading capital. If you can open a position that is 10 times bigger than your trading capital, then you have 10x leverage available to you. The maximum allowed leverage for ETH futures listed on BTCC Exchange is as high as 100x. There are two ways of thinking about leverage:
- Leverage as capital efficiency driver : For opening a position of a given size, higher the leverage lower the trading capital required. The leverage in spot trading is always 1x, while it is 3-4x in margin trading. This means futures is 20 to 100 times more capital efficient than spot or margin trading.
- Leverage as a returns amplifier : Because in a leverage trade position size is greater than the capital deployed, impact of prices moves gets magnified. The return on capital deployed is leverage times the price return. This means that you can amplify your trading gains the effective use of leverage.
If ETH price increased from $1246.40 to $1261.99 your return would be equal to:
Advantages of Ether futures trading can be summarized as follows:
Magnify returns through leverage
In-built leverage magnifies impact of ETH price moves on your return on capital.
Trading both rising & falling markets
Long when bullish. Short when bearish. Trade all market conditions profitably.
Trade more with less
Deploy the capital freed up by using leverage in other trading opportunities.
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How to Trade Ethereum Futures on BTCC?
Quick overview
- STEP 1: Open the webpage of BTCC futures trading
- STEP 2: Choose the type of ETH futures contract to buy
- STEP 3: Choose the order types of ETH
- STEP 4: Choose the level of leverage
- STEP 5: Choose the lot size
- STEP 6. Set take profit and stop loss targets
- STEP 7.Choose the price direction: Buy when bullish, Sell when bearish
STEP 1: Open the BTCC margin trading interface
Log in to the official website of BTCC.com and click Margin Trading on the main menu. Or directly enter the web version link: https://www.btcc.com/en-US/trade/perpetual/ETHUSDT, and log in at the upper right corner of the page.
If you have not opened an account with BTCC, click here to quickly register a free account and top up the initial amount. You can deposit at least 2 USDT for an attempt. If the deposit amount is greater than 500 USDT, you can receive up to 2,000 USDT bonus.
STEP 2: Choose ETH perpetual futures contract
Select ETH perpetual contract at the top of the page.
STEP 3: Choose the ETH order type
Select the BTCC margin trading order type at the top right of the page. BTCC margin trading orders are divided into market orders, limit orders and stop loss orders.
- Market orders: Users place orders at the best current price to execute buy or sell order instantly.
- Limit order: A limit order is a type of order set by the trader to buy or sell at a specified price level or better. The buy order will be executed at the limit price or a lower one, while the sell limit order will be executed at the limit price or a higher one. The limit order can be seen by the market, which has given the opportunity for market participants to fill the buy or sell order.
- Stop order: A stop order, also known as the stop-loss order is a type of order set by the trader to buy or sell at a specified price level. The order will be executed automatically after a certain price level has been reached.
STEP 4: Choose the level of leverage
You can adjust the level of leverage based on your need. For example, the leverage of ETH’s perpetual contract included 25x, 50x, 75x, and up to 100x leverage.
STEP 5: Choose the lot size
The ETH trading unit at BTCC allow users to choose the number of lots based on their investment situation, and the range can be selected from 1 to 3000 lots. There are real-time contract values and reference margins below.
STEP 6. Set take profit and stop loss targets
Market orders, limit orders and stop orders can used to set stop-profit and stop-loss price targets. The difference is that market orders can be executed immediately at the best current price, while limit orders and stop orders can only be executed at the price within a day or during the week.
STEP 7. Choose the price direction: Buy when bullish, Sell when bearish
After setting up the basic data information, users can choose to buy (open long) or sell (sell short) after entering their desired price. Note that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform. Click the buy or sell button, and the ETH order is completed.
After the contract order is completed successfully, you will be notified at the bottom of the position page; if there is no contract order to be executed, it will be displayed at the bottom of the pending order page.
For more orders information, you can click on the futures trading report at the top right of the page to view.
At this point, you have completed the Ether futures trading. If you have further inquiries, please contact the online customer service.
Why Trade ETH Futures on BTCC Exchange
Increase profitability
Low trading fees, tight spreads & deep order books of our ETH contracts increase profitability of your trades.
Improve risk management
Set TP / SL with your order, Leverage advanced order types and instruments (Options, Interest Rate Swaps) to create hedging strategies.
Identify better trades
Use professional charts & advanced analysis tools to quickly identify trading opportunities.
BTCC has over 10 years of stable and secure operating history with a low investment threshold of 3 USDT, making it a solid option for anyone looking to continue or start their crypto journey. BTCC also launched tokenized futures this year, allowing users to trade stocks and commodities futures with USDT as the margin.
The process of trading futures with BTCC begins with registration and log in. New customers can now sign up here to get a welcome bonus of 10USDT, and complete the Know Your Customer verification process to access all BTCC’s features and BTCC discount. Once verified, you can explore the deposit bonus and start your crypto trading now.
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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.
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