Crypto Futures on PrimeXBT are trading instruments that allow you to speculate on the future price of cryptocurrencies without actually owning the underlying asset. Instead of buying or selling the actual cryptocurrency, you trade contracts that represent a specific amount of the cryptocurrency at a set price.
You can open long (buy) positions if you believe the price will rise or short (sell) positions if you think the price will fall. How to open a position on Crypto Futures you can read here.
Unlike traditional futures contracts, which have a set expiration date, crypto futures on PrimeXBT typically have no expiration time, allowing you to hold positions as long as you want (as long as you have enough funds to support your positions).
On the Crypto Futures platform, traders have access to two different trading modes: Netting and Hedging. Each mode works differently:
Netting Mode: In this mode, all positions on the same instrument are combined into a single net position, regardless of whether they are Buy or Sell orders. This simplifies your position management by consolidating multiple trades into one.
Hedging Mode: This allows you to hold both Buy and Sell positions on the same instrument simultaneously. It's useful for strategies where you want to protect against potential losses by balancing your positions.
Additionally, there are two margin types available:
Cross Margin: This type of margin is shared across all open positions, automatically adjusting leverage based on your total order size.
Isolated Margin: This margin type is specific to each position, allowing you to manually adjust the leverage for that particular trade.
More about how to adjust the leverage for isolated margin positions you can read here.
Orders are executed based on actual Order book prices rather than Bid/Ask quotes from a liquidity provider.
An important feature of Crypto Futures is the liquidation price, which indicates the price at which your position will automatically close to prevent further losses. More about liquidation you can read here.