Initially, KuCoin launched what was known as KuMEX. 2. Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. However, if you suffer losses and reach the maintenance margin level in the process of trading, the system will automatically send you a message that requires to add more funds to your account to maintain your position. KuCoin offers users exclusive fee rates for Futures trading and 0% or low interests on Margin loans through its VIP Privilege. ADL (Auto-Deleveraging): When a position is taken over by the liquidation engine,the insurance fundwill be used to cover the extra cost of this liquidation process, i.e., if the position is closed at a worse price than the bankruptcy price. Kucoin Margin, known as margin trading on Kucoin exchange, is a form of using financial leverage through borrowing more funds from the exchange to increase the investment capital. Maintenance Margin is the minimum amount of funds you must hold to keep a position open. The remaining amount is the profit. Take profit: select the price you want to take profit. Whats the benefits of using margin instead of futures? Margin in cross margin mode is shared among the users Margin Account, Each user can only open one cross margin account, and all trading pairs are available in this account. You may click here to start Spot trading. Whats the benefits of using margin instead of futures? No borrowing funds and repaying. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Press J to jump to the feed. Reward amounts will be determined based on the type and relevance of the information provided. In Amount section, select the amount you want to buy. HOW TO USE ISOLATED AND CROSS MARGIN ON KUCOIN. 1. Please note,Margin poolincludesMarginandUnrealized PNL. Futures trading is a 100x magnifier of your profits! At the Price section, select the price you want to sell. Liquidation: To keep the positions open, traders are required to hold a percentage of the value of their position, i.e., the Maintenance Margin percentage. Unrealised PNL: The unrealised PNL is based on the difference between the average entry price and mark price. Learn more details about the Index price. No borrowing funds and repaying. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. In simple terms, KuCoin Futures trading is a process of opening a position - getting profit/loss from the position - closing a position. Diversify your portfolio, you will have more investment options. YouTube icon. In the Price section, select the price you want to buy. For more information, please see our Reddit and its partners use cookies and similar technologies to provide you with a better experience. In this video I will show you step by step process to enter short positions. With futures you're able to lose your money about 10x faster than you do with margin. All Rights Reserved. With the growthof PNL, the margin poolwill become greater as well, which means the denominator of the formula becomes larger,and thus the leverage decreases. You make a profit by placing orders and predicting the rise or fall of the price of a contract representing a cryptocurrency over a certain period of time. Select a coin contract you want to trade. >>> Related: A complete guide to sign up for Binance account for newbies (20% Lifetime Trading Fees discount), What is BingX? For newbies: Debt Ratio is the Key to Affect Your Profit or Loss, 1. Also, you may click deposit or withdrawal to learn more. 1.1 Cross Margin Cross margin means that all assets (regardless of type) in the margin account will be used as collateral to improve capital utilization and prevent liquidation. Web App. Both Binance and KuCoin have low trading fees starting at 0.1%, but with discounted rates using their native tokens, Binance is lower at 0.075% vs KuCoin's 0.08%. When the market price decreases and reach this price, the system will automatically take profit for you. The assets in the Margin account are mainly used for Margin borrowing and Margin trading. Privacy Policy. Compare Margin and Future. Kucoin Margin is more and more popular because of the following advantages: All forms of borrowing funds with financial leverage carry potential risks, so does Kucoin Margin. actual leverage of the position can be regarded a. barometer of the position risk. When the borrower's debt is about to expire, the system will automatically borrow the same amount of the corresponding debt assets (which equals the remaining mature debts principal and interest) to continue the debt if there are insufficient corresponding assets in the borrower's account. Initially, KuCoin launched what was known as KuMEX. Borrow funds from the Funding Market 3. The higher the actual leverage is, the higher risk of liquidation would be and vice versa. To short on Kucoin margin, you will need to: 1) Find the instrument you want to short on the Kucoin platform. Realised PNL: This is based on the difference between the entry price and close price of a position. The maximum leverage available on KuCoin futures is 100x, but users need to pass KYC first. When user A earns profit, the unrealized PNLwill be positive. You can go as low as 1x leverage on futures to though. #kucoin #futures #leveragetrading #daytrading https://twitter.com/MarkTheDGTWhat's up fellow GRINDERS? Yah it takes practice to get good at it and unfortunately practice cost money. Once liquidation happens, all positions will be liquidated. The higher the actual leverage is, the higher risk of liquidation would be and vice versa. If you think that the specific token will go down, at step 2, you can borrow that token then sell it short at a higher price, then buy it back at a low price to make a profit. What are the meanings of these commonly used words at KuCoin Futures? and our As mentioned, KuCoin has some of the lowest trading fees, even among top exchanges. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. KuCoin Academy Lesson 15|How to Reduce the Risk of Margin Trading and Futures Trading | by KuCoin Academy | kucoinexchange | Medium Write Sign up Sign In 500 Apologies, but something went. When you lose assets and fall below the maintenance margin, you will only lose the amount that you used to open the previous order without affecting the total balance on the wallet. What is Futures? Let's go and see the functions of each account. To open a Short position on Kucoin Futures, select Limit order. So why use the margin account at all? KuCoin provides margin trading with leverage positions with over 15 cryptocurrencies like KCS, ETH, and BTC are available. They just get fees regardless. Funding occurs after every 8 hours. Calculation of leverage:Leverage = Position value / Margin, Calculation of floating leverage:Floating leverage = Position value / Margin pool. Lets go and see the functions of each account. Investors can choose the Cross Margin or Isolated Margin mechanism when opening a position, Smooth trading system, fast order execution, You will deal with a high risk of burning your account if you use large leverage, using leverage is very dangerous when the market is highly volatile, Prone to price manipulation: The price of a. The safest way to trade is futures, it seems to be the only trade on KuCoin that you can use a Stop Loss and Take Profit. Collateral = Initial Margin + Realized PNL + Unrealized PNL < Maintenance Margin. Mark price:This system sets the Mark Price of the Futures to the Fair Price. It's insane how terrible they are. Futures deduction coupon has been distributed to your account! When user B bears losses, the unrealizedPnLwill benegative. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Binance and KuCoin are two of the best possible exchanges to use if you're someone who likes to trade a variety of different altcoins. he decrease of PNL, the margin pool will also reduce, which means the denominator of the formula becomes smaller, and thus the leverage increases. Crypto lending and borrowing is an intuitive way of earning passive income in the crypto market . However, if the insurance fund is not enough, the ADL system will automatically start and deleverage the counterparty positions of the liquidated position at the bankruptcy price of that position, by profit and leverage level priority. Margin can be a double-edged sword, meaning gains are amplified but so too are. Once liquidation happens, it will not affect other isolated positions. To be specific, when the floatingPNL(namely, the unrealized PNL) is positive, the system will lower the actual leverage. Try now to leverage more profits with less funds! Both platforms have more than 150 different altcoins available for trade; however, Binance has a couple dozen more altcoins on its platform than what is found on KuCoin. Step 5: To cancel the order just placed, choose Open Order and click Cancel. I stopped using the margin account as soon as I got comfortable with Futures trading. The company says lenders will always be repaid in full, either from the borrower's collateral or. CopyRight 2017 - 2023 KuCoin.com. YouTube Just set your leverage and begin trading, really convenient. KuCoin Futures has currently launched delivery contracts that include the nearby quarterly delivery contracts and forward quarterly contracts, BTC Quarterly 0925 and BTC Quarterly 1225 . Short coins are available on KuCoin for a fee of sixty to ninety dollars. Risk Warning: Please pay attention to the risk control of Futures trading. (Web Version), How to trade Futures at KuCoin Futures? 4) Place your order. You may deposit or transfer assets to your Futures account to start, You may deposit or transfer assets to your, account to stake assets or participate in soft staking. : This article is based on buying long in a margin trade. For instance, when withdrawing BTC from KuCoin, users only have to pay 0.0004 BTC. This mechanism makes it easier for you to control risk and lower risk than Cross Margin. Before starting margin trading on KuCoin, it is necessary to open the margin trading service and transfer crypto assets to the margin trading account to trade.

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