Guide: How to Trade Bitcoin Futures on BTCC
Futures contracts are types of derivatives product where their values are derived from an underlying asset. The underlying assets can be a stock, bonds, or commodities. In the case of cryptocurrency futures contracts, the underlying asset would be crypto asset (Bitcoin BTC).
Unlike buying Bitcoin directly from the spot market, a bitcoin futures contract is generally traded on leverage. This means you can buffer up your purchasing power and potential profit by borrowing money up to 150X from the exchange like BTCC.
BTCC offers daily, weekly futures and perpetual contracts for Bitcoin derivative trading. The weekly Bitcoin futures contracts can be held up to a maximum of one week starting from Sunday 09:00 – Sunday 05:00 (UTC+8). However, the Bitcoin perpetual contracts has no expiry period, and you can maintain your position as long as you meet the margin requirements.
7 steps to trade bitcoin futures
You can start buying and selling Bitcoin futures in 7 steps. Now, we will walk you through step-by-step on how to trade Bitcoin weekly futures or perpetual contractsat BTCC.
- Visit BTCC.com and Click on the Trading Button to Enter the Trading Platform.
- Switch Between the BTC Weekly and Perpetual Contracts.
- Select Order (Market Order (Instant) or Pending Orders (Limit Order or Stop Order)
- Choose the Leverage That You Prefer to Trade and Afford the Risks
- Select Lot Size
- Set Stop Loss and Take Profit by Switching the S/L and T/P
- Click the Buy or Sell Button to Activate Your Order
1 – Visit BTCC.com and Click on the Trading Button to Enter the Trading Platform.
2 – Switch Between the BTC Weekly and Perpetual Contracts.
Now that you have the BTCC trading terminal before you, the next step is to select the type of Bitcoin futures contract you will like to trade. Remember, the daily and weekly futures have an expiration date, while the perpetual futures have no expiry date.
Click on the market watch drop-down button as shown on the above image, set to BTC weekly futures by default, and navigate to the perpetual futures contract, which we’ll continue with as we go forward in this guide.
Under the Perpetual contract, click on the BTC/USD to set the main chart window to the perpetual futures contract, as shown in the image above.
3 – Select Order (Market Order (Instant) or Pending Orders (Limit Order or Stop Order)
With the main chart window now set to the BTC/USDT perpetual contract, you can now select the type of order to buy or sell.
Trades can be entered by an instant buy/sell order or pending orders, with two types (buy/sell limit orders, or buy/sell stop orders).
A significant difference between market orders and pending orders is that pending orders will only activate as live orders when the market price reach the pending price level.
As a result, these orders have a validity period where they get deleted if the market price does not activate the pending orders into live market orders.
The validity period can be set to one day or one week using the radio button as shown in the image below.
Limit orders are pending orders where you expect the Bitcoin price to bounce off from your established price level.
Buy Limit order:
This type of limit order is set at a distance below the bid/ask price, where you anticipate the Bitcoin price to bounce back into a bullish trend upon hitting the set price.
Sell Limit Order:
The sell limit order is set when you anticipate a downward trend for BTC price.
The limit order is placed at a price level above the BTC bid/ask price while you wait for the market price to activate the sell order and resume the bearish trend.
Stop orders are types of pending orders that traders placed when they expect the Bitcoin price to break through the established price threshold and continue in the same direction.
Buy Stop Order:
The buy stop order is placed above the bid/ask price in anticipation of a continuation of the bullish trend.
Sell Stop Order:
The sell stop order is placed below the bid/ask price, where you expect a downtrend to continue.
4 – Choose the Leverage That You Prefer to Trade and Afford the Risks
As mentioned in the introduction, buying or selling the BTC futures contract enables you to scale up your buying or selling power using leverage.
BTCC crypto exchange offers leverage that enable you to trade from 5X up to 100X of your capital.
5 – Select Lot Size
Next, we input the lot size for either a buy or sell order.
The lot size for trade on the BTC perpetual futures contract ranges from 0.01 to 2 quantity (lot).
Conversely, the lot size for the regular BTC weekly futures contract ranges from 0.01 to 30 quantity (lot).
6 – Set Stop Loss and Take Profit by Switching the S/L and T/P
To set your take profit and stop loss levels for your trade, you can turn on the toggle button beside the “Set stop-limit” label. It is set to off by default.
Although you can buy or sell a Bitcoin BTC futures contract without setting your take profit or stop loss targets, we consider it is the best practice to always establish these levels.
The stop loss is a price level where you instruct the broker to exit your trades if it does not go in your chosen direction. In contrast, the take profit level is set to close your transaction in profit when the Bitcoin price reaches an established price threshold.
7 – Click the Buy or Sell Button to Activate Your Order
Now, you finally made it to the last step, you can click on the buy or sell button to initiate your trade for the Bitcoin futures.
There you have it, you can start trading Bitcoin futures following these easy yet detailed guide.
Happy crypto trading on the BTCC exchange.