KuCoin Futures Trading Guide - Web Version
In futures trading, you can profit from market price fluctuations by going long or short on a contract. On KuCoin Futures, you can also use leverage when going long or short to hedge risks or profit in volatile market conditions.
What does it mean to go long or short?
In the spot market, traders can only profit from rising asset prices. With futures, however, you have the opportunity to make a profit regardless of whether the asset price goes up or down.
- If you choose to go long, it means you expect the contract price to rise.
- Conversely, if you choose to go short, it means you sell the contract, anticipating its value will decrease.
Here are examples to help you understand how to profit from going long or short on futures contracts:
Long BTC/USDT Contract:
| Initial Margin | Leverage | Entry Price | Close Price | Position PNL |
| 100 USDT | 100 | 40,000 USDT | 50,000 USDT | 2,500 USDT |
Short BTC/USDT Contract:
| Initial Margin | Leverage | Entry Price | Close Price | Position PNL |
| 100 USDT | 100 | 50,000 USDT | 40,000 USDT | 2,000 USDT |
KuCoin Futures Trading Steps:
1. On KuCoin Futures, transfer USDT or USDC to your USDT-margined account as margin. For coin-margined contracts, you need to transfer BTC, ETH, among others, into the account.
2. Choose your leverage multiplier.
3. Select the appropriate order direction (buy or sell).
4. Enter the amount of the contract you want to trade.
How to Calculate Unrealized PNL and Return Rate
USDT-Margined Contracts
Unrealized PNL = Position Size * Contract Multiplier * (Latest Mark Price - Entry Price)
Return Rate (%) = Unrealized PNL / Initial Margin = Unrealized PNL / (Position Size * Contract Multiplier * Entry Price * Initial Margin Rate)
*Initial Margin Rate = 1 / Leverage Multiplier
Coin-Margined Contracts
Unrealized PNL = Position Size * Contract Multiplier * (1 / Entry Price - 1 / Latest Mark Price)
Return Rate (%) = Unrealized PNL / Initial Margin = Unrealized PNL / (Position Size * Contract Multiplier / Entry Price * Initial Margin Rate)
*Initial Margin Rate = 1 / Leverage Multiplier
Click the links below to learn more about futures products and how to use them:
Details of USDT-Margined Contracts
Details of Coin-Margined Contracts
Start your futures trading now!
Thank you for your support!
KuCoin Futures Team
Note: Users from restricted countries and regions cannot open futures trading.