How to Trade Ethereum (ETH) Futures on BTCC

2023/01/22By: C, Fiona

 

Ethereum (ETH) futures contracts are among the most robust in the cryptocurrency industry, with daily volume on the main crypto exchange doubling that of Ethereum spot trades throughout the market. Ethereum futures allow investors to profit from fluctuations in the price of Ethereum in the short term, amplify their investment returns, and reduce risk.

 

In order to get started with ETH futures contracts, you should read this.

 

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What is ETH Futures Contracts

 

Futures contracts on Ether (ETH), the cryptocurrency that fuels the Ethereum network, allow investors to speculate on whether the value of ETH will rise or fall in the future. Futures contracts are agreements to purchase or sell an asset at a future date; however, ETH futures are settled in cash rather than ETH.

 

Futures contracts based on ETH are known as ETH futures contracts, however ETH itself is not the underlying asset. In this scenario, Ether (ETH) is the underlying asset from which a derivative “derives” its value. When you trade a derivative, you aren’t actually buying or selling the underlying asset, but rather a representation of it.

 

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How do ETH Futures Work

 

Commodity markets have a long history of using futures as a trading instrument because they provide a means for sectors to smooth out price fluctuations and for speculators to speculate on future price swings. Futures can also be used to insure against short-term price fluctuations that would otherwise reduce the value of an investor’s holdings.

 

In finance, a futures contract is a legally binding agreement between two parties to acquire or sell an asset at a specified future date and price. Some Ethereum (ETH) futures contracts, such those traded on Binance and the Chicago Mercantile Exchange (CME), settle for their cash value rather than the actual Ethereum (ETH) being transferred between the buyer and seller.

 

Many ETH futures deals, however, employ a form of this contract structure known as perpetual futures, which never expire and for which delivery is not necessary. The price of a perpetual futures contract is often linked to the asset’s actual market value over the duration of the trade.

 

You may be able to pick between regular futures, which are contracts for the real asset (ETH) or a cash settlement, and perpetual futures, a derivative that neither necessitates nor has an end date, depending on the exchange you use.

 

Why Trade Ethereum (ETH) Futures on BTCC

 

 

To trade ETH futures, you can choose BTCC crypto exchange.BTCC, a cryptocurrency exchange situated in London, UK, was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone.

BTCC Exchange

We specializes in crypto futures contract trading, offering perpetual futures contracts. The maximum leverage offered by BTCC for daily futures contracts is 150x. The vast variety of futures offered by BTCC accommodates the trading habits and objectives of both novice and seasoned traders.We offer the USDT-margined futures and Coin-margined futures . Users can trade futures using USDT or cryptos like BTC, ETH, and XRP. And Large orders of up to 300 BTC can be executed at the top price levels.

 

Here are the main advantages of using the BTCC crypto exchange to trade ETH futures:

 

  • Largest variety of futures: Daily and Perpetual futures
  • Flexible leverage from 10x to 150x
  • Lowest trading fees 0.03%
  • Industry-leadingmarket liquidity
  • Plenty of campaigns to win exciting rewards

 

How to Trade Ethereum (ETH) Futures on BTCC

 

  • STEP 1: Open the webpage of BTCC futures trading 
  • STEP 2: Choose the type of ETH futures contract to buy
  • STEP 3: Choose the order types of ETH
  • STEP 4: Choose the level of leverage
  • STEP 5: Choose the lot size
  • STEP 6. Set take profit and stop loss targets
  • STEP 7.Choose the price direction: Buy when bullishSell when bearish

 

 

STEP 1: Open the webpage of BTCC futures trading 

 

Register a free account at BTCC in seconds, and make your initial deposit. You can start to trade with the minimum deposit of 2 USDT. If your deposit amount is greater than 500 USDT, you can receive up to 2,000 USDT bonus.

 

STEP 2: Choose the type of ETH futures contract to buy

 

Select the daily, weekly or perpetual contract of ETH at the top of the page.

 

STEP 3: Choose the order types of ETH

 

Select the order types for ETH at the top right of the page. The order types at BTCC included market orders, limit orders and stop loss orders.

 

 

 

  • Market orders: Users place orders at the best current price to execute buy or sell order instantly.
  • Limit order: A limit order is a type of order set by the trader to buy or sell at a specified price level or better. The buy order will be executed at the limit price or a lower one, while the sell limit order will be executed at the limit price or a higher one. The limit order can be seen by the market, which has given the opportunity for market participants to fill the buy or sell order.
  • Stop order: A stop order, also known as the stop-loss order is a type of order set by the trader to buy or sell at a specified price level. The order will be executed automatically after a certain price level has been reached.

STEP 4: Choose the level of leverage 

 

You can adjust the level of leverage based on your need. For example, the leverage of ETH’s weekly contract included 10x, 20x, 50x, and up to 100x leverage.

 

STEP 5: Choose the lot size

 

Trader can select the lot size based on his need, and the lot size of ETH futures ranged from 1 to 3000 lots. Below are contract values from real-time data and insurance fund for reference.

 

STEP 6. Set take profit and stop loss targets

 

Market orders, limit orders and stop orders can used to set stop-profit and stop-loss price targets. The difference is that market orders can be executed immediately at the best current price, while limit orders and stop orders can only be executed at the price within a day or during the week.

 

 

STEP 7. Choose the price direction: Buy when bullishSell when bearish

 

After setting up the basic data information, users can choose to buy (open long) or sell (sell short) after entering their desired price. Note that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform. Click the buy or sell button, and the ETH order is completed.

 

 

 

After the contract order is completed successfully, you will be notified at the bottom of the position page; if there is no contract order to be executed, it will be displayed at the bottom of the pending order page.

 

 

 

For more orders information, you can click on the futures trading report at the top right of the page to view.

 

 

At this point, you have completed the ETH futures trading. If you have further inquiries, please contact the online customer service.

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How To Long ETH Futures?

 

In a long ETH futures position, you wager that the price will increase in the future. Nevertheless, because you are trading futures, you can also employ leverage to boost your trade’s profit. For instance, suppose you wish to invest $1,000 and believe the price of ETH would rise. You decide to utilize 3x leverage, which, if you are correct, will treble your profits.

 

In this example, your initial margin is $1,000, allowing you to acquire ETH futures worth $3,000. If ETH increases by 5%, your position is now worth $3,150 and your equity is $1,150. $1,000 (starting margin) + $150 (unrealized gain) = $1,150

 

However, if the price of ETH decreases, you lose part (or all) of your trade equity. Suppose the price decreases by 5%. The trade is incurring a loss of $150, and your equity has decreased from $1,000 to $850.

 

Fortunately, the trade’s maintenance margin is likely set at 50% of the initial margin, giving you a $500 cushion before a margin call. You have a cushion of $350 remaining before reaching your maintenance margin. $850 in remaining equity minus $500 in maintenance margin equals $350.

 

 

Trade ETH futures on BTCC Now: https://www.btcc.com/en-US/trade/perpetual/ETHUSDT

 

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BTCC FAQs

 

1.Is BTCC safe?

Since its inception in 2011, BTCC has made it a priority to create a secure space for all of its visitors. Measures consist of things like a robust verification process, two-factor authentication, etc. It is considered one of the most secure markets to buy and sell cryptocurrencies and other digital assets.

 

2.Is it possible for me to invest in BTCC?

Users are encouraged to check if the exchange delivers to their area. Investors in BTCC must be able to deal in US dollars.

 

3.Can I Trade BTCC in the U.S?

Yes, US-based investors can begin trading on BTCC and access the thriving crypto asset secondary market to buy, sell, and trade cryptocurrencies.

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