Bitget: Introduction to futures trading functionality

Futures trading is a financial derivative that, unlike spot trading, enables investors to profit from both shorting and leveraging.Bitget futures offers over 200 margin trading pairs with leverage up to 125x.

When investors anticipate an asset's price movement, they can go long (buy) or short (sell) futures contracts to gain from price changes. Additionally, investors can select specific leverage levels to amplify potential returns on long or short positions. This article introduces the key features of Bitget's futures trading interface, which is designed to provide investors with extensive operational flexibility and advanced risk management tools.

1. Margin mode

1. Cross margin mode: In this mode, all available funds in the account serve as margin, enabling investors to bear the risk associated with futures trading. In other words, all available balances in the account can be used as margin to avoid the liquidation of a position. However, as all balances in the account are used as margin, significant market fluctuations could lead to substantial losses.

2. Isolated margin mode: Unlike cross margin mode, isolated margin mode allows investors to allocate margin separately for each position, helping to manage individual position risk. This means that if one position incurs substantial losses, other positions and overall funds in the account remain unaffected.

2. Trading operations

1. Opening a position: Investors can open a futures position by strategically selecting entry timing based on market analysis. Positions can be opened with various order types, such as limit and market orders.

2. Close a position: Investors can close their position when they reach their target profit or need to manage losses, locking in gains or limiting losses.

3. Adjusting leverage

Leverage in futures trading amplifies position sizes, potentially increasing returns. Available leverage ranges from 2x to 125x, depending on trading pairs. Investors can adjust leverage for long or short positions based on risk tolerance and market judgment. Appropriate leverage adjustments can optimize trading strategies, but high leverage can lead to significant losses.

• Leverage for long positions: Applied when expecting a market rise, enhancing potential returns as well as risk.

• Leverage for short positions: Used when expecting a market drop, offering similar risk and return dynamics.

4. Order types

1. Limit order: Sets a predefined price in the order book and executes only when the market reaches or surpasses that price. It allows buying at lower or selling at higher prices than the current market. Unlike a market order, which executes immediately at the current market price, a limit order is placed in the order book and is only triggered once the specified price is reached.

2. Advanced limit order: Provides additional parameters, such as trigger and execution prices, allowing for more sophisticated trading strategies.

3. Market order: Order placed at the current best available price. If the order is not filled or fully executed, it continues to fill at the next available price until completion.

4. Trigger order: Activated when the market hits the trigger price, executing based on the pre-determined quantity and price: Assets are not reserved until the order is triggered. The order may not execute as it is subject to the pre-defined price or leverage tier.

5. Trailing stop order: A stop-loss order that allows users to place a pre-set order, triggered when a price callback occurs. When the last price (mark price) reaches the highest/lowest price × (1 ± trail variance), the order will be placed at the best available market price.

6. Scaled order: A large order is divided into smaller orders, which are executed gradually at different price levels. This strategy helps reduce market impact and can diversify risk.

7. Iceberg order: A large order is split into smaller, discreet orders to conceal the trader's intentions, minimizing market impact and protecting the trader's privacy.

5. Time in force

Various order duration options provide flexibility to investors, including GTC (Good Till Canceled), FOK (Fill or Kill), and IOC (Immediate or Cancel).

• GTC: Remains valid until canceled. This is suitable for long-term holders or traders targeting specific prices.

• FOK: Requires complete execution; otherwise, the order is canceled immediately. Ideal for traders with strict timing and completeness requirements.

• IOC: Partially executed immediately, while unfilled portions of the order are canceled. This enables traders to quickly enter the market or adjust positions.

6. Margin management

1. Margin: The funds deposited by an investor to make a futures trade, ensuring the trade is executed and covering potential losses.

2. Single-currency margin: Uses only one currency as margin, such as USDT or BTC.

3. Multi-assets margin: A fund pool composed of multiple currencies, which can be used for margin. This improves fund utilization and reduces the impact of price fluctuations in a single currency.

4. Exchange rate in multi-assets mode: Used to determine the value of different currencies in multi-assets margin mode.

5. Haircut in multi-assets mode: Different assets may be discounted at a lower rate based on factors like the investor's risk level and trading history to meet margin requirements.

7. Risk assessment and tools

1. Position tiers: Positions are categorized into different tiers based on size and risk, each with specific margin and risk requirements.

2. Futures calculator: A tool that calculates PnL, including margin, risk/reward, take-profit PnL, take-profit ROI, stop-loss PnL, and stop-loss ROI. Bitget's Futures Calculator can also calculate target price, liquidation price, average price, and more. Please note that the values provided by the calculator are for reference only and exclude transaction fees or other costs.

3. Funding rate: In perpetual futures, a funding fee based on the funding rate is periodically charged or paid to maintain consistency between the futures price and the underlying asset's price. The funding rate is influenced by market supply and demand and the ratio of long to short positions.

8. Perks and benefits
Coupons Center: Offers a variety of trading vouchers, such as transaction fee discount vouchers and rebate vouchers, to provide investors with more perks and benefits.

By now, you should understand that entering futures trading without a comprehensive understanding of these terms can be risky and unwise The extensive functionality of the futures trading interface provides a highly efficient, flexible, and risk-controlled environment, catering to diverse investor needs and strategies. After reading this article, you should have a deeper understanding of trading, enabling you to make more informed and confident trading decisions.