Gate.io: What is leveraged trading (futures trading)? how to trade

Gate.io

Gate.io allows not only spot trading but also leverage trading. Gate.io allows you to trade in various trading styles, so it is highly recommended because it has a high degree of freedom. Leverage trading explains what kind of trading can be done.

What is futures trading?

Leveraged trading (futures trading) is a reservation transaction in which settlement is made by the deadline with only a promise of settlement. This form of trading is probably very famous in Forex, but similar trades are possible in virtual currencies as well. Futures contracts can be bought or sold at any time up to the expiration date, but are automatically settled when the expiration date is reached. Margin is required for futures trading. Leverage can be applied, but the amount of leverage increases the risk. Many people trade speculatively.

Types of leveraged trading

The following three types of leveraged trading are handled by Gate.io.

Margin trading

What is margin trading? Deposit virtual currency as margin and use leverage to trade more than the margin. There is a repayment term, up to 10 days. Interest is calculated on an hourly basis from the date of borrowing.

futures trading

Futures contracts are also known as perpetual contracts. It is a transaction that can be held until the date and time desired by the user without a deadline and can be settled at any time. In other words, it is the trading form with the highest degree of freedom, and leverage trading generally refers to this trading form in many cases.

delivery transaction

Delivery deals are called time-limited deals. Delivery trades differ from futures in that they have their origins. A delivery contract is a futures contract that settles at a predetermined expiration date and price.

Difference between spot trading and futures trading

With spot trading, you buy the coins you want to invest in immediately at the current price. In other words, it always comes from buying. Futures trading, on the other hand, trades coins by predicting future prices. In addition, futures trading can be leveraged, so it is possible to suddenly increase the amount from a small amount to a large amount, and there is a possibility that the entire amount will be lost. Futures trading can be started even from a sell order, so the advantage is that the range of strategies is wide.

How to start leveraged trading

To start leveraged trading, you must first open an account. The following article also introduces how to open an account, so please refer to it.

Margin trading

Please log in first. For margin trading, select “Margin trading” from the trades.

Source : Gate.io

It will be the actual transaction screen. You can switch currency pairs by clicking the yellow frame. The green frame is the chart, and the blue frame shows the order position when the order is actually placed, and you can close it by clicking it. The red frame will be the order tab. The left side of the red frame is the trading board, where you can see the status of buy and sell orders.

Source : Gate.io

Choose to buy or sell in the red frame. Next, select the order method in the blue frame. Finally, select the quantity and unit in the purple frame and place an order.

Source : Gate.io

derivatives trading

For Derivatives, select Futures from Derivatives. The specifications of the chart screen are the same as margin trading.

Source : Gate.io

Select Cross or Separation in the red frame. “Cross” is cross-margining, and cross-margining is a method of trading with all the funds deposited in the futures account as margin. “Separation” is a separation margin, a trading method that separates the trading margin and the funds in the futures account. Then, specify the order method in the blue frame, and finally select the quantity and unit in the purple frame to place the order.

Source : Gate.io

delivery transaction

For delivery transactions, select “Delivery Transactions” from Derivative Transactions. The specifications of the chart screen are the same as margin trading

Source : Gate.io

The order method is the same as derivative trading.

Source : Gate.io

Order format for leveraged trading

There are many different order formats. It will be easy to understand if you are doing currency exchange.

limit settlement

Limit settlement is an order method that specifies the transaction amount and issues an order. An order is executed when the market price of the currency pair reaches the limit price. The risk is that you will lose the opportunity to make a profit if the transaction is not completed at the amount you wanted to buy, but the biggest advantage is that you do not have to bother to monitor the chart.

Market order (market order)

This is an effective ordering method when you want to immediately conclude a transaction at the market price at the time of ordering. If the market price fluctuates wildly, it may not be possible to close at the desired price, so be careful. There are many slips, so be careful of market volatility.

conditional order

Also called a stop order. It is a conditional method to place an order when the market price of the currency pair reaches the price specified by the user in advance.

Gate.io allows you to open an account for free

Gate.io is a cryptocurrency exchange that is also used by institutional traders who make large transactions. Commissions and fees are 0.15~0.2% for Makers and Takers. There are many people who are making a profit. You can also transfer wallet funds between portfolio and classic accounts. There is also a point system that can be used within the exchange. It is also possible to create sub-accounts.

Many trading methods

Trading stocks include BTC, ETH, USDT, etc. In addition, APIs are also available, and there is also an automatic grid bot function that trades according to exchange rates. Furthermore, it uses its own platform and supports staking, ETFs, spot trading, and futures trading.

A wide variety of contract types

Gate.io also has a VIP program for core users. Deposit methods include virtual currency (Bitcoin), P2P, credit card, debit card, and even fiat currency (USD). You can easily use it online using a web browser or smartphone device.

Lots of events

There will be a startup event, and you can receive airdrops by holding GT tokens and purchasing newly listed coins. You can check the latest information summary on the official website. There are also bonuses, campaigns, and perks. There is also a community where you can exchange opinions. There is also a VIP rank for core users.

Many brands available

Gate.io has the largest selection of stocks worldwide in the industry. Since it is possible to trade products, the service is enriched. Live market access, spot and futures, grid and liquidity mining is provided. The latest official news from brokers is posted on media such as blogs and SNS, which is useful.

Multilingual support available

Gate.io will be a global cryptocurrency exchange. Therefore, we support multiple languages such as español, Русский, việt, 简体, 中文, português, etc. We have traders participating from all parts of the world. Many institutional investors also participate. Coins also support major currencies, including bitcoin, ethereum, cardano, xrp, solana, dogecoin, and gatetoken.

maximum leverage is high

The current maximum leverage is 125x, which is very high. What’s more, you can also trade through the app, which is a great deal. You can also download your transaction history. The official website also has a glossary and terms of use, so take a look. The bonus is very attractive because it can be used as a margin as a credit. There is also an invitation program, individuals can introduce friends, and newly listed coins can be traded flexibly.

Plenty of learning content

Gate.io also has a wealth of learning content about trading. After creating your profile, learn about financial products within your web account. There’s always a lot to learn about digital asset management, including economic indicators, martingales, hedging, arbitrage, Gridbot, Launchpad, and more.

The product also supports fiat currency

Deposits can be made via bank account, debit card, or credit card, as well as fiat currencies. Compatible with: There is also testnet, and you can start with a demo. Before making large trades, it is recommended that you first become familiar with various trades online.

USD/JPY/EUR/GBP/NGN/PHP/IDR/EGP/UZS/CAD/MYR/BRL/RUB/INR/TRY/KZT/AED/CNY/HKD/ZAR/PLN/ARS/UAH/PGK/XOF/ KES/PKR/GHS/UAH/THB/TWD/XAF/PLN/MXN/COP

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