What Is Futures Trading?

Futures trading is a type of trading that allows users to profit from the price movements of digital assets. Unlike spot trading, futures trading does not require users to directly hold the underlying assets. Instead, users trade contracts rather than buying or selling the assets themselves. Based on market conditions, users can choose to go long or short and use leverage to improve capital efficiency.

Key Features of Futures Trading

1. Two-Way Trading

Users can participate in the market regardless of whether prices rise or fall.

Long: Bullish on the market and profit when prices rise
Short: Bearish on the market and profit when prices fall

2. Leverage Trading

Futures trading supports leverage, allowing users to control larger positions with a smaller amount of margin.

For example, with 10x leverage, a user only needs 100 USDT in margin to open a position worth 1,000 USDT.

3. No Need to Hold Spot Assets

In futures trading, users do not need to purchase or hold the corresponding spot assets in advance. Instead, they can participate in price movements by depositing margin.

Differences Between Futures Trading and Spot Trading

Common Types of Futures Contracts

Hotcoin currently supports multiple types of futures products, including:

USDT-Margined Perpetual Futures
Coin-Margined Perpetual Futures
USDT-Margined Delivery Futures
Coin-Margined Delivery Futures

Different futures products may vary in terms of margin requirements, settlement methods, and trading mechanisms. Users are advised to fully understand the relevant rules before choosing the product that best suits their trading needs.

Risk Disclaimer

Futures trading involves high risk. Due to market volatility and the use of leverage, users may experience significant losses and may even lose all of their margin.

Before participating in futures trading, please ensure that you fully understand the relevant trading rules and product features, and trade responsibly according to your own risk tolerance.