Futures trading is a kind of financial derivatives. Compared with trading in the spot market, users can choose to buy long position or sell short position by judging the ups and downs in futures trading to obtain benefits from price rises or falls. . For example, Bitcoin futures trading are trading that users can conduct without actually owning Bitcoin. When choosing futures trading, users invest in the price trend, not the asset.
In futures trading, you can participate in market price fluctuations by [ buying ] or [ selling ] a futures trading, and then profit from it. If you choose [ Buy ], it means that you expect the price of your position will rise in the future; on the contrary, choosing [ Sell ] means to sell the position and predict that its price will fall in the future.
In the spot market, investors can only profit from rising currency prices. But with futures trading, you have the opportunity to profit from whether the price of an asset rises or falls. On the UEEx trading platform, you can also use margin when buying or selling to hedge risks or profit from volatile market conditions.
Trade Example
Buy BTC / USDT Futures
- Buy Price：70,000
- Close：77,000
- Final Profit：7000
Sell BTC / USDT Futures
- Sell Price：70,000
- Close：63,000
- Final Profit：7000
Unrealized Profit and Loss Calculation
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Unrealized profit & loss = Quantity of position * buy / sell * （ Target price - Open price ）
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ROI % = Unrealized profit & loss / current principal = [ ( Target price - Open price ) * buy / sell * quantity of position ] / （ Opening principal + Additional principal ）
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Unrealized profit & loss = Quantity of position * buy / sell * （ Latest price - Open price ）
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ROI % = Unrealized profit & loss / current principal = [ ( Latest price - Open price ) * buy / sell * quantity of position ] / （ Opening principal + Additional principal ）
The final interpretation right belongs to UEEx official.