CoinEx Coin-margined Contract Tutorial

CoinEx's coin-margined contracts offer traders increased leverage, lower trading fees, reduced liquidation risk, and greater control over their trading strategies.

Dec 02, 2024 at 11:16 am

CoinEx Coin-margined Contract Tutorial: A Comprehensive Guide to Trading Futures with Coin Margin

CoinEx's coin-margined contract trading is a powerful tool that allows traders to increase their potential profits by utilizing their cryptocurrency holdings as collateral. Unlike traditional futures contracts, which are settled in cash, coin-margined contracts are settled in the underlying cryptocurrency, providing greater flexibility and control over the trading process.

Advantages of Coin-margined Contracts on CoinEx:

• Increased Leverage: Coin-margined contracts provide higher leverage than traditional futures contracts, allowing traders to multiply their potential profits with minimal capital investment.
• Lower Trading Fees: Trading coin-margined contracts on CoinEx incurs lower fees compared to other exchanges, making it a cost-effective option for frequent traders.
• Reduced Risk of Liquidation: Since collateral is denominated in cryptocurrency, traders can benefit from reduced risk of liquidation when market volatility leads to extreme price fluctuations.
• Control over Trading Strategy: Coin-margined contracts allow traders to implement their own unique trading strategies by customizing leverage and risk management parameters.

Key Differences Between Coin-margined and USD-margined Contracts:

Feature	Coin-margined Contracts	USD-margined Contracts
Collateral	Cryptocurrency	Stablecoin (USDT)
Settlement	Underlying cryptocurrency	USDT
Fluctuation Risk	Subject to crypto price volatility	Stable
Leverage	Higher	Lower
Trading Fees	Lower	Higher

Step-by-Step Guide to Trading Coin-margined Contracts on CoinEx:

Step 1: Create and Verify a CoinEx Account

To trade coin-margined contracts on CoinEx, you must first create an account and complete the verification process. This involves providing personal information, such as your name, email address, and government-issued ID for KYC compliance.

Step 2: Fund Your Account with Cryptocurrency

To trade coin-margined contracts, you need to fund your CoinEx account with the cryptocurrency you want to use as collateral. CoinEx supports a wide range of cryptocurrencies, including BTC, ETH, USDT, and others.

Step 3: Access the Contract Trading Platform

Once your account is funded, you can access the contract trading platform by clicking on the "Contracts" tab in the top navigation bar. Here, you will see a list of available contract pairs, each representing a different underlying cryptocurrency.

Step 4: Choose a Contract and Trading Mode

Select the contract pair you wish to trade and choose the trading mode. CoinEx offers several trading modes, including limit orders, market orders, and stop-limit orders. Each mode has its own distinct characteristics and suits different trading strategies.

Step 5: Set Leverage and Trading Parameters

Determine the leverage you want to use for your trade, considering your risk tolerance and trading objectives. You can adjust the leverage ratio on the right-hand side of the trading interface. Additionally, you can set stop-loss and take-profit orders to manage your risk and secure potential profits.

Step 6: Execute Your Trade

Once you have configured your trading parameters, you can execute your trade by clicking on the "Buy" or "Sell" button. Your order will be sent to the market and executed based on the prevailing market conditions.

Step 7: Monitor Your Position

After executing your trade, you should regularly monitor your position by tracking the market price and your unrealized profit and loss (PnL). This will help you make informed decisions about adjusting your position or closing the trade.

Step 8: Close Your Position