A Comprehensive Guide to Futures Trading on CoinDCX

Navigate your way to success in crypto futures trading on CoinDCX!

20 Jun 2023 | 8 min read

Table of Contents

Introduction

Welcome to the exciting world of futures trading! If you’re looking to take your trading skills to the next level and explore new opportunities in the crypto market, you’ve come to the right place. This comprehensive guide will walk you through the essentials of futures trading on CoinDCX.

Whether you’re a beginner or an experienced trader, we’ve got you covered with valuable insights, tips, and strategies to help you navigate the dynamic world of futures trading. So, buckle up and get ready to dive into this thrilling and potentially profitable trading arena.

1. How to Open CoinDCX Futures Account?

Opening an account on CoinDCX is super simple. All you need to do is

download the CoinDCX crypto trading app
enter the details required
complete your KYC and wait for your profile to get verified.

Once done, fund your wallet and trade in any crypto Futures trading pair of your choice!

2. A Beginner’s Guide to Futures Trading on CoinDCX

Futures trading is one of the newer concepts in the world of cryptos and it is very important that you, as a participant in this market, should know about it. Futures trading has a host of benefits over regular crypto trading;

access to leverage,
high liquidity
indefinite holding periods (in case of perpetual futures) that can serve as a proxy for investing directly in cryptos.

It came to be when Bitcoin Futures trading was first launched back in December 2017 by the Chicago Mercantile Exchange (CME) and since then, this new market has taken off; explore more on crypto Futures at CoinDCX!

3. Common Futures Trading Terms Guide

Are you new to futures trading and feeling overwhelmed by all the jargon? Don’t worry, we’ve got you covered! Check out our comprehensive guide to common futures trading terms. From long and short positions to margin calls and limit orders, this guide will help you navigate the world of futures trading with confidence. Head to the article below to gain a better understanding of the key terms and concepts that are essential for success in futures trading.

Read here: Crypto Futures Trading Terms

4. How to Select Trading Pairs For Futures Trading?

Selecting the right trading pairs for crypto futures trading is essential for maximizing profitability. Traders should consider factors such as

Liquidity
trading volume
market trends when choosing their pairs.

Conducting thorough research, analyzing historical data, and staying informed about market dynamics are key to making informed decisions.

Diversifying trading pairs can help manage risk and optimize portfolio performance. By understanding the characteristics and behavior of different trading pairs, traders can enhance their chances of success in the fast-paced world of crypto futures trading.

CoinDCX has 150+ Futures trading pairs, with upt to 25X leverage for you to choose from, and more on the way!

5. CoinDCX Futures Trading Order Types Guide

Effective and profitable trading has many different requirements and one of the biggest requirements is a responsive and versatile order-placing mechanism and CoinDCX has that sorted out for you! From market orders to stop orders and everything in between, understanding these order types is crucial for maximizing the odds in your favor while trading in the crypto Futures market. Discover the different order types you can use on CoinDCX’s Futures trading platform in our CoinDCX Crypto Futures Order Types to learn more about CoinDCX Futures Trading Order Types Guide and enhance your trading experience today!

Did You Know? CoinDCX has launched its biggest Futures battle of 2023; Traders Premier League. Click here to know more!

6. How to Improve Risk Management on CoinDCX Futures

Want to minimize risks and protect your investments while trading Futures on CoinDCX? Learn valuable tips and strategies to improve your risk management skills. Discover how to set stop-loss orders, manage leverage effectively, and employ risk-reducing techniques. Click on the link to access our comprehensive guide on “Managing Risk in Crypto Futures Trading” and trade with confidence.

7. Spot Trading vs Futures Trading in Crypto: Everything You Should Know About

Curious about the distinctions between spot trading and futures trading in the crypto market? Well, here’s the two-liner on it – Both spot trading and futures trading in crypto involves the buying and selling of cryptos, but they differ in terms of settlement and risk. In spot trading, any transaction is settled immediately between the two parties, with the asset being transferred from the seller’s wallet to the buyer’s wallet. However, in crypto futures trading, which is typically perpetual in nature, there is no asset settlement as such, but rather the opening and closing of a contract on the market, which is called open interest, and the settlement happen in cash when the contract is closed.

Gain a deeper understanding of these two popular trading methods and explore their unique characteristics. Click here to access our comprehensive article on “Spot Trading vs Futures Trading in Crypto” and enhance your trading knowledge.

8. Should You Trade Futures In The First Place? Make An Informed Decision

Trading futures gives you access to leverage, and at CoinDCX, you have access to up to 20x leverage on certain trading pairs. While leverage can exponentially multiply your profits, it can cut into your capital and cause a wipeout unless proper money management techniques are in place. Discover the advantages and potential drawbacks of trading crypto futures to make informed decisions.

Explore our comprehensive article on the “Pros and Cons of Trading Crypto Futures” and gain valuable insights into this exciting trading avenue.

9. How Does Liquidation Work In Futures Trading And How To Reduce Your Chances of Getting Liquidated?

Curious about how liquidation works in futures trading? In a nutshell, liquidation means the conversion of any investment asset back into cash. Liquidation in Futures is a safety mechanism that is in place to ensure that broader risk is avoided in a highly leveraged market.

Understand the mechanics behind liquidation and how it affects your positions by diving into our comprehensive article on “Liquidation in Crypto Futures Trading“and gain valuable insights to manage liquidation risk effectively.

10. What Are The Key Benefits Of Trading Crypto Futures?

Explore the key benefits that make it an enticing option for investors. From enhanced leverage and hedging opportunities to 24/7 trading and the potential for higher returns, crypto futures offer unique advantages. Click the link below to delve into a comprehensive article on the key benefits of trading crypto futures.

To Know More, Read: Pros and Cons Of Trading Crypto Futures

11. What Are The Fees Involved In Crypto Futures Trading?

CoinDCX offers one of the most competitive crypto Futures trading fees in the market currently, with the regular maker fee in Futures trading standing at 0.025% while the regular taker fee for crypto Futures trading at CoinDCX 0.075% of the trading volumes – if your trading volume is under 2 million USDT. For more information, check out our fee structure.

12. What Are The Common Mistakes Futures Traders Should Avoid?

Avoiding common mistakes is crucial for futures traders. Learn about the pitfalls to watch out for and the strategies to mitigate risks in this comprehensive article. Don’t let these mistakes hinder your trading success. Here are the 7 most common mistakes futures traders make:

Trading without a plan
Trading without stop-losses
Over-leveraging
Not understanding the risk-to-reward ratio
Overexposing a position
Letting emotions get in the way
Not researching enough

13. What Is Funding Rate In Crypto Futures Trading?

Understanding the funding rate is essential for successful crypto futures trading. It is a mechanism that balances the price of perpetual contracts with the underlying asset. Learn how the funding rate works from our detailed guide mentioned below! Enhance your trading knowledge and make informed decisions in the crypto futures market.

Read: Funding Rates in Crypto Futures

14. Top Metrics To Look Out For, While Trading In Crypto Futures

Metrics play a crucial role in evaluating and optimizing trading strategies in the crypto futures market. They provide valuable insights into market trends, liquidity, and price movements. Discover the top metrics you should focus on to make informed trading decisions by reading our guide below. Stay ahead of the game and maximize your trading potential.

Read: Top Metrics while Trading in Crypto Futures

15. Why You Should Consider Trading Bitcoin Futures

Bitcoin futures trading offers a multitude of benefits, including high liquidity, reduced chances of slippage, and exposure to the largest cryptocurrency by market capitalization. If you’re new to trading and want to dive into BTCUSDT perpetual futures with confidence, click the article below for a comprehensive beginner’s guide. Empower yourself with knowledge and embark on your trading journey with confidence.

Read: Bitcoin Futures Trading

Conclusion

Congratulations! You have now reached the end of our futures trading guide on CoinDCX. We hope this comprehensive resource has provided you with the knowledge and confidence to embark on your futures trading journey. Remember, futures trading can be both exciting and challenging, but with the right mindset, skills, and strategies, you can seize profitable opportunities in the cryptocurrency market. As you continue your trading endeavors, stay informed, practice risk management, and refine your trading techniques.

Stay connected with the CoinDCX community for updates, insights, and support. Now, it’s time to step into the world of futures trading and unleash your trading potential. Best of luck on your trading adventures!

Want to take your first futures trade? Check out SOLUSDT perpetual futures on CoinDCX!