Poloniex Futures is a cryptocurrency futures trading platform that offers trading services for perpetual futures contracts. The platform provides easy integration to interact with the futures exchange through both REST APIs and Websocket Feeds. Poloniex Futures enables users to trade with up to 100x leverage on Bitcoin, Ethereum, TRON, and other crypto assets.
Understanding Poloniex Futures is essential for anyone looking to invest in cryptocurrency futures. This guide will provide an overview of Poloniex Futures and its features, as well as provide detailed information on how to get started with futures trading. It will also cover the different types of futures contracts available, trading strategies and techniques, understanding leverage and margin, managing positions, copy trading, fees and profits, available balance and transfers, reward center and trial fund, and trading with BTC and ETH.
Key Takeaways
- Poloniex Futures is a cryptocurrency futures trading platform that offers trading services for perpetual futures contracts with up to 100x leverage.
- Understanding Poloniex Futures is essential for anyone looking to invest in cryptocurrency futures.
- This guide provides an overview of Poloniex Futures and its features, as well as detailed information on how to get started with futures trading, different types of futures contracts, trading strategies and techniques, understanding leverage and margin, managing positions, copy trading, fees and profits, available balance and transfers, reward center and trial fund, and trading with BTC and ETH.
Understanding Poloniex Futures
Poloniex Futures is a futures trading product offered by Poloniex, a cryptocurrency exchange that allows users to buy or sell digital assets such as Bitcoin, Ethereum, and other altcoins. Futures trading is an agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future.
Poloniex Futures allows traders to trade with leverage, which means that they can take a position with a smaller amount of capital than would be required for a spot trade. This can amplify potential gains, but it also increases the risk of losses. It is important to be well-prepared and understand the risks involved before beginning to trade futures.
Poloniex Futures offers both isolated margin and cross margin trading. Isolated margin trading allows traders to limit their risk by only using a portion of their available margin for a particular trade. Cross margin trading, on the other hand, allows traders to use their entire margin balance to support a position.
Poloniex Futures also offers an Auto-Deleveraging System (ADL) to help prevent liquidation events from occurring. If a trader’s position is liquidated, the ADL will automatically deleverage the position of the trader with the highest leverage until the liquidation event is resolved.
Traders can use USDT as collateral for futures trading on Poloniex. The exchange offers USDT-margined futures trading tutorials for beginners, as well as a Futures Trial Fund Tutorial for web. It is important to understand the rules of the risk limit tier for USDT collateralized perpetual futures to avoid liquidation events.
In summary, Poloniex Futures is a futures trading product offered by Poloniex, a cryptocurrency exchange. It offers both isolated margin and cross margin trading, as well as an Auto-Deleveraging System (ADL) to help prevent liquidation events. Traders can use USDT as collateral for futures trading and should be well-prepared and understand the risks involved before beginning to trade futures.
Getting Started with Futures Trading
To begin trading futures on Poloniex, users need to first enable futures trading on their account. This can be done by logging in to their Poloniex account and clicking on the “Futures” tab. If the user has not yet verified their account, they will need to do so before enabling futures trading. Verification requires providing personal information and documentation to comply with KYC and AML regulations.
Once futures trading is enabled, users can deposit USDT into their futures wallet to begin trading. Poloniex offers two types of futures contracts: perpetual futures and USDT-margined futures. Perpetual futures contracts trade 24/7 and do not have an expiration date, while USDT-margined futures contracts have a set expiration date and are settled in USDT.
Before opening a futures position, users must first set their initial leverage. This can be manually set when opening a position and ranges from 0.01x to 100x. Leverage amplifies both risks and returns, so it is important to use it responsibly and with caution.
To open a futures position, users can navigate to the “Trade” tab and select the desired futures contract. They can then enter the amount they wish to trade and set their desired leverage. Stop loss and take profit orders can also be set to manage risk.
It is important to note that futures trading can be complex and requires knowledge and experience. Poloniex offers a variety of resources for users to learn about futures trading, including tutorials and trading strategies. Users can also contact customer support for assistance with any questions or issues they may encounter.
Types of Futures Contracts
Futures contracts are agreements to buy or sell a particular asset at a predetermined price and date in the future. They are popular among traders who want to hedge their risk or speculate on price movements. Poloniex offers two types of futures contracts: perpetual futures contracts and expiration futures contracts.
Perpetual Futures Contracts
Perpetual futures contracts are similar to traditional futures contracts, but they do not have an expiration date. Instead, they are designed to track the underlying asset’s price indefinitely. Traders can hold these contracts for as long as they want, and there is no need to roll them over to a new contract every few months.
Poloniex offers several USDT-margined perpetual futures contracts, including APT, ARB, CFX, ID, MASK, SUI, and 1000PEPE. These contracts are settled in USDT and have a leverage range from 0.01x to 100x.
Expiration Futures Contracts
Expiration futures contracts are futures contracts that have a specific expiration date. They are designed to settle at a specific price on a specific date. These contracts are popular among traders who want to speculate on short-term price movements or hedge their risk over a specific period.
Poloniex offers several USDT-margined expiration futures contracts, including BTC, ETH, DOT, and SOL. These contracts have a leverage range from 0.01x to 100x.
Comparison Table
| Futures Contract Type | Definition | Settlement | Leverage Range |
|---|---|---|---|
| Perpetual Futures Contracts | Contracts designed to track the underlying asset’s price indefinitely | Settled in USDT | 0.01x to 100x |
| Expiration Futures Contracts | Contracts that have a specific expiration date | Settled at a specific price on a specific date | 0.01x to 100x |
Overall, Poloniex offers a variety of futures contracts to suit different trading strategies and risk appetites. Traders should carefully consider their goals and risk tolerance before entering into any futures contracts.
Trading Strategies and Techniques
When it comes to trading on Poloniex Futures, there are a variety of strategies and techniques that traders can use to maximize their profits. These strategies range from basic to advanced, and each comes with its own set of advantages and disadvantages. Here are some of the most popular trading strategies and techniques used by traders on Poloniex Futures:
1. Trend Trading
Trend trading is a popular strategy among traders who want to take advantage of market trends. This strategy involves identifying the direction of the market trend and then entering a position in the direction of that trend. Traders can use technical indicators such as moving averages, Bollinger Bands, and MACD to identify trends and determine when to enter and exit positions.
2. Scalping
Scalping is a popular technique among traders who want to make small profits quickly. This technique involves entering and exiting positions rapidly, often within a few minutes or even seconds. Traders who use this technique often rely on technical indicators such as support and resistance levels, as well as market news and events, to make quick decisions.
3. Grid Trading
Grid trading is a strategy that involves placing orders at preset intervals within a configured price range. This strategy is designed to take advantage of market volatility by buying and selling futures contracts at different price levels. Traders can set the upper and lower prices of the range and the number of grids to determine their positions.
4. Hedging
Hedging is a technique used by traders to protect their positions from adverse price movements. This technique involves taking a position in a futures contract that is opposite to the position in the underlying asset. For example, if a trader holds a long position in Bitcoin, they can hedge their position by taking a short position in a Bitcoin futures contract.
5. Position Trading
Position trading is a strategy that involves holding positions for an extended period of time, often weeks or months. This strategy is used by traders who want to take advantage of long-term market trends and avoid short-term market fluctuations. Traders who use this strategy often rely on fundamental analysis to identify undervalued or overvalued assets.
Overall, traders on Poloniex Futures have a variety of strategies and techniques at their disposal. By understanding these strategies and choosing the ones that best fit their trading style and risk tolerance, traders can maximize their profits and minimize their losses.
| Strategy | Advantages | Disadvantages |
|---|---|---|
| Trend Trading | Takes advantage of market trends | Requires knowledge of technical analysis |
| Scalping | Can make small profits quickly | Requires quick decision-making and a high level of focus |
| Grid Trading | Takes advantage of market volatility | Can be complex and difficult to set up |
| Hedging | Protects positions from adverse price movements | Can limit potential profits |
| Position Trading | Takes advantage of long-term market trends | Requires patience and a long-term view of the market |
Table 1: Advantages and Disadvantages of Popular Trading Strategies
Understanding Leverage and Margin
Leverage and margin are two essential concepts in futures trading. Leverage refers to the ability to control a large amount of capital with a smaller amount of funds. Margin, on the other hand, is the amount of funds that a trader must have in their account to open and maintain a position. In Poloniex Futures, leverage is determined by the initial margin and maintenance margin levels.
Isolated Margin Mode
Poloniex Futures offers an Isolated Margin mode that allows traders to limit their losses to the amount of margin they have used for a particular position. In Isolated Margin mode, the trader’s margin is separated from the rest of their funds, which means that losses incurred in one position will not affect the trader’s other positions.
When using Isolated Margin mode, it’s essential to pay close attention to the initial margin required for a particular position. If the position’s price moves against the trader, and the margin falls below the maintenance margin level, the position will be liquidated, and the trader will lose their margin.
Here’s an example of how Isolated Margin mode works. Suppose a trader has $10,000 in their account and wants to buy a futures contract worth $100,000. If the initial margin required for the contract is 10%, the trader would need to deposit $10,000 as margin to open the position. If the trader chooses to use Isolated Margin mode, their $10,000 margin will be separated from the rest of their funds, and they will only lose their margin if the position is liquidated.
| Margin Mode | Advantages | Disadvantages |
|---|---|---|
| Isolated Margin | Limits losses to margin used | Higher initial margin required |
| Cross Margin | Lower initial margin required | Higher risk of losing all funds |
In summary, leverage and margin are crucial concepts in futures trading that allow traders to control larger positions with smaller amounts of funds. Poloniex Futures offers Isolated Margin mode, which allows traders to limit their losses to the amount of margin used for a particular position. It’s important to pay close attention to the initial margin required for a position and to manage risk carefully to avoid losing funds.
Managing Positions
Managing positions is an essential part of trading futures on Poloniex. A position is the amount of a particular asset that a trader holds in their account. When a trader opens a position, they are essentially betting on whether the price of the asset will go up or down. Managing positions involves keeping track of open positions, entry price, liquidation price, and other position details.
The entry price is the price at which a trader enters a position. It is important to keep track of the entry price because it determines the profit or loss of the position. The liquidation price is the price at which a position is automatically closed if the market moves against the trader. It is crucial to monitor the liquidation price to avoid losing more than the initial investment.
Traders can view their open positions, entry price, liquidation price, and other position details in the “Positions” tab on the Poloniex Futures trading platform. The platform provides real-time updates on the profit and loss of each position, as well as the margin required to maintain the position.
Traders can manage their positions by adjusting the stop-loss and take-profit orders. Stop-loss orders are used to limit the loss on a position, while take-profit orders are used to lock in profits. Traders can also add to or reduce the size of their positions based on market conditions.
It is important to note that managing positions requires discipline and risk management. Traders should always have a plan in place for managing their positions and should not let emotions drive their trading decisions.
Overall, managing positions is a critical aspect of trading futures on Poloniex. By keeping track of open positions, entry price, liquidation price, and other position details, traders can make informed decisions and manage their risk effectively.
| Entity | Definition |
|---|---|
| Position | The amount of a particular asset that a trader holds in their account. |
| Entry Price | The price at which a trader enters a position. |
| Liquidation Price | The price at which a position is automatically closed if the market moves against the trader. |
| Position Details | Information about the open position, including profit and loss, margin required, and more. |
Copy Trading on Poloniex
Poloniex offers a copy trading service for futures trading that allows traders to copy the trading strategies of expert investors. This makes futures trading easier for newcomers while providing a platform where veteran traders can get a share of the profit their followers earn.
Becoming a Lead Trader
Lead traders on Poloniex are the traders whose strategies are copied by others. To become a lead trader, one needs to have a good trading record and a high level of expertise in futures trading. Lead traders can enjoy a huge cut of profits earned by their followers, making it a lucrative opportunity for experienced traders.
Becoming a Follower
Followers, also known as copy traders, are the traders who copy the trading strategies of lead traders. To become a follower on Poloniex, one needs to select a lead trader whose trading strategy they want to copy and then follow them. When a follower copies a lead trader, they will also copy their asset portfolio.
Poloniex’s copy trading service is open to all users, and those who join may enjoy an extensive pool of users. However, it is important to note that there are risks associated with copy trading, and followers should carefully consider the lead trader’s track record and strategy before copying them.
| Pros | Cons |
|---|---|
| Easy for newcomers | Risky for inexperienced traders |
| Lucrative for experienced traders | Dependent on the success of lead traders |
| Extensive pool of users | No guarantees of profit |
In conclusion, copy trading on Poloniex can be a useful tool for both experienced and inexperienced traders. However, it is important to fully understand the risks and benefits associated with it before participating.
Understanding Fees and Profits
When trading on Poloniex Futures, it is important to understand the fees and profits associated with each trade. The fees for Futures trading are standard for all traders, regardless of their 30-day trading volume. The maker/taker fee schedule on Poloniex Futures is 0.01% maker / 0.075% taker for all customers, regardless of the amount being traded. Spot fee tier doesn’t affect Futures.
Traders should also be aware of the deposit and withdrawal transaction fees. Poloniex does not charge fees for depositing crypto into your account. However, there may be fees associated with withdrawing crypto from your account, depending on the type of cryptocurrency being withdrawn.
When opening a position, traders are required to pay an initial margin, which is the minimum amount needed to open a position. This amount is calculated based on the order value, the initial margin percentage, and the taker fee for opening and closing the position. The actual fee charged will be based on the executed price.
To understand the potential profits of a trade, traders should consider the leverage they are using. Leverage allows traders to increase their exposure to the market without having to put up the full amount of capital. However, it also increases the potential profits and losses of the trade.
Traders can calculate their potential profits by taking the difference between the opening and closing prices of the trade, multiplied by the size of the position and the leverage used. It is important to note that profits are not guaranteed and traders should always consider the risks associated with trading Futures.
| Entity | Description |
|---|---|
| Fees | Standard for all traders regardless of 30-day trading volume. Maker/taker fee schedule is 0.01% maker / 0.075% taker for all customers. No deposit fees, withdrawal fees may apply. |
| Profits | Calculated by taking the difference between the opening and closing prices of the trade, multiplied by the size of the position and the leverage used. |
| Profit | Not guaranteed, traders should always consider the risks associated with trading Futures. |
Available Balance and Transfers
When trading on Poloniex Futures, it is important to keep track of your available balance and manage your transfers effectively. The available balance is the amount of funds that you have in your futures account that is not currently being used as margin for open positions.
To check your available balance, navigate to the “Wallet” section on the bottom navigation bar and select “Futures.” Your available balance will be displayed on the screen. It is important to note that your available balance may change as you open or close positions, so it is important to regularly check this balance.
If you need to transfer funds between your spot account and your futures account, you can do so by navigating to the “Transfer Balances” page. From here, you can transfer USDT from your spot account to your futures account. It is important to note that transfers may take some time to process, so plan accordingly.
One important thing to keep in mind when managing your available balance is that you need to have enough funds available to cover the margin requirements for any open positions. If you do not have enough funds available, your positions may be liquidated, resulting in a loss.
It is also important to manage your transfers effectively to avoid any delays or issues with your trades. Make sure to double-check the amount and destination of any transfers before confirming them.
Overall, managing your available balance and transfers effectively is crucial for successful trading on Poloniex Futures. By regularly checking your available balance and managing your transfers carefully, you can minimize your risk and maximize your potential profits.
| Term | Definition |
|---|---|
| Available balance | The amount of funds that you have in your futures account that is not currently being used as margin for open positions. |
| Transfer | The process of moving funds between your spot account and your futures account. |
Reward Center and Trial Fund
Poloniex offers a Reward Center where users can earn rewards for completing certain tasks. One of the rewards available is the Futures Trial Fund Coupon. This coupon allows users to experience Poloniex’s futures products in a real trading environment without risking their own funds. The trial fund coupon can be redeemed in the Reward Center, and the trial fund will be distributed to the user’s futures account.
Earning with Trial Fund Coupons
To earn with trial fund coupons, users can redeem the coupon in the Reward Center and use the trial fund to trade futures. The trial fund can not be transferred or withdrawn, but any earnings made from trading with the trial fund can be withdrawn. The trial fund coupon code is only sent to selected users at the moment.
Users who register through an invitation code can enjoy a 10% rebate for Spot, Margin, and Futures transactions. The rebate is valid within 60 days from the registration of the Poloniex account, and the rebate will be issued to the spot account.
| Entity | Information |
|---|---|
| Reward Center | Users can earn rewards for completing certain tasks, including the Futures Trial Fund Coupon. |
| Trial Fund | The trial fund can be used to trade Futures, but it cannot be transferred or withdrawn. |
| Trial Fund Coupon | The coupon allows users to experience Poloniex’s futures products in a real trading environment without risking their own funds. |
| Earnings | Any earnings made from trading with the trial fund can be withdrawn. |
Poloniex Futures charges a maker/taker fee schedule of 0.01% maker / 0.075% taker for all customers, regardless of the amount being traded. The spot fee tier does not affect Futures.
Trading with BTC and ETH
Poloniex Futures offers users the ability to trade Bitcoin (BTC) and Ethereum (ETH) with up to 100x leverage. This means that traders can potentially earn significant profits with a relatively small initial investment. However, it is important to note that trading with leverage also increases the risk of potential losses.
To start trading BTC and ETH on Poloniex Futures, users must first deposit funds into their futures account. This can be done by transferring funds from their spot account or by depositing cryptocurrency directly into their futures account. Once funds are available, users can then place orders for BTC and ETH futures contracts.
When trading BTC and ETH futures contracts, users have the option to go long (buy) or short (sell) the contracts. Going long means that the trader is betting on the price of the asset to increase, while going short means that the trader is betting on the price to decrease.
It is important to note that Poloniex Futures charges fees for trading BTC and ETH futures contracts. The fees vary depending on whether the user is a maker or taker. Maker fees are charged when a user adds liquidity to the market by placing a limit order, while taker fees are charged when a user removes liquidity from the market by placing a market order.
Here is a table outlining the fees for trading BTC and ETH futures contracts on Poloniex Futures:
| Maker Fee | Taker Fee |
|---|---|
| 0.02% | 0.05% |
Overall, trading BTC and ETH futures contracts on Poloniex Futures can be a lucrative opportunity for experienced traders. However, it is important to understand the risks involved and to always practice responsible trading habits.
Frequently Asked Questions
How can I earn with Poloniex Futures?
Poloniex Futures offers users the opportunity to earn through futures trading. Users can earn by taking advantage of the price fluctuations of various cryptocurrencies. By predicting the movement of the market, users can buy and sell futures contracts to make a profit. Additionally, Poloniex Futures offers a referral program where users can earn rewards/commissions by inviting friends to trade in Poloniex Futures.
What are the steps to use futures in Poloniex?
To use futures in Poloniex, users must first create an account and complete the necessary verification process. Afterward, users can navigate to the Futures section of the platform and select the cryptocurrency they want to trade. Users can then choose their preferred futures contract and enter the amount they want to trade. Finally, users can submit their order and wait for it to be executed.
What are the fees for Poloniex Futures?
Poloniex Futures charges a maker/taker fee of 0.01%/0.075%, respectively, for all customers regardless of the amount being traded. The spot fee tier does not affect futures. Additionally, there are no fees for depositing or withdrawing funds from Poloniex Futures.
What are some effective futures trading strategies?
There are various futures trading strategies that users can employ to maximize their profits. One effective strategy is trend-following, where users follow the trend of the market and enter long or short positions accordingly. Another strategy is mean reversion, where users buy or sell futures contracts based on the assumption that the market will eventually return to its mean value. Users can also use technical analysis to identify trading opportunities based on chart patterns and indicators.
When is the best time to trade futures?
The best time to trade futures depends on various factors such as market volatility, trading volume, and news events. Generally, users should trade during times of high volatility and trading volume to maximize their profits. Additionally, users should stay up-to-date with the latest news and events in the cryptocurrency industry to identify potential trading opportunities.
How does leverage work in Poloniex Futures?
Poloniex Futures offers users the ability to trade with leverage, which allows users to increase their buying power and potentially increase their profits. Leverage works by borrowing funds from the exchange to increase the user’s trading position. Poloniex Futures offers leverage up to 100x, which means users can trade with up to 100 times their initial investment. However, users should be aware that trading with leverage also increases the risk of losses.