KuCoin Futures tutorial for beginners

KuCoin Futures lets you trade crypto derivatives with up to 100x leverage—ideal for hedging or speculating, but requires careful risk management and KYC verification.

Jul 26, 2025 at 05:35 pm

What Is KuCoin Futures?

KuCoin Futures is a cryptocurrency derivatives trading platform that allows users to trade perpetual and inverse futures contracts on various digital assets like Bitcoin (BTC), Ethereum (ETH), and altcoins. Unlike spot trading, futures let you speculate on price movements without owning the underlying asset. This makes it ideal for both hedging and leveraging positions. The platform supports up to 100x leverage, which can amplify both gains and losses—so beginners must understand risk management before diving in.

How to Set Up a KuCoin Account

Before accessing futures, you must have a verified KuCoin account:

• Visit [KuCoin’s official website](https://www.kucoin.com) and click “Sign Up”
• Enter your email, create a strong password, and complete email verification
• Go to “Security” in your account settings and enable Google Authenticator for 2FA
• Complete KYC (Know Your Customer) verification under “Identity Verification” by uploading a government-issued ID
• Once approved, you’ll gain full access to the futures trading interface
  

  Do not skip KYC—it’s required to unlock higher withdrawal limits and futures functionality.

  Navigating the KuCoin Futures Interface

  
  After logging in:
• Click “Futures” from the top menu bar
• Choose between USDT-Margined (stablecoin-settled) or Coin-Margined (crypto-settled) contracts
• The main screen displays order books, price charts, open positions, and order history
• Use the “Market” tab to select trading pairs like BTC/USDT or ETH/USD
• Always check the funding rate—it’s displayed near the pair name and affects holding costs for perpetual contracts
  

  New traders should start with USDT-Margined contracts—they’re simpler to understand because profits and losses are denominated in stablecoins.

  Placing Your First Futures Trade

  
  To open a long or short position:
• Select a contract (e.g., BTC/USDT)
• Choose Isolated Margin mode initially—this limits risk to the allocated margin
• Set your leverage using the slider (start with 3x–5x for learning)

• In the “Order” panel:

  • Select “Limit” or “Market” order type
  • For a long: Enter price (if limit), amount in USDT or contracts, then click “Buy Long”
  • For a short: Enter details, then click “Sell Short”
• Confirm the order in the pop-up showing estimated liquidation price and margin
  

  Always review the liquidation price—if the market hits that level, your position will be closed automatically to prevent further losses.

  Managing Risk and Closing Positions

  
  Risk control is critical in futures:
• Set stop-loss orders when opening a trade—this limits downside if the market moves against you
• Monitor your margin ratio in the “Positions” tab—stay above 10% to avoid liquidation

• To close a position manually:

  • Click the “X” next to the open position
  • Or place an opposite order (e.g., sell to close a long)
• You can also set take-profit orders to lock in gains automatically
  

  Never trade with funds you can’t afford to lose—leverage magnifies both outcomes. Use the “Demo Trading” mode first to practice with virtual funds.

  Frequently Asked Questions

  Q: Can I trade KuCoin Futures without completing KYC?
  
  No. KYC verification is mandatory to access futures trading. Without it, you’ll only see a “Verify Now” prompt when trying to enter the futures section.

  Q: What’s the difference between Isolated and Cross Margin?
  
  Isolated Margin allocates a fixed amount of funds to a single position—losses can’t exceed that amount. Cross Margin uses your entire wallet balance as collateral, increasing risk but reducing liquidation chances. Beginners should stick to Isolated.

  Q: Why did my position get liquidated even though the price recovered?
  
  Liquidation is irreversible. Once the mark price hits your liquidation level, the system closes the position automatically—even if the market reverses seconds later. This is why setting stop-losses below the liquidation price is essential.

  Q: How often is funding paid or received?
  
  Funding occurs every 8 hours (00:00 UTC, 08:00 UTC, 16:00 UTC). If you hold a position past these times, you’ll either pay or receive funding based on the rate shown in the trading panel. Positive rates mean longs pay shorts; negative rates mean shorts pay longs.