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KuCoin Futures Trading Tutorial

KuCoin Futures Trading Tutorial

Margin Trading VS Futures Trading

A complete Kucoin Futures Trading Tutorial by James of MoneyZG. How Margin Trading differs from Futures Trading.

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KuCoin Futures Trading Tutorial (Futures Strategy & Trading Explained)

Mar 19, 2022

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KuCoin futures trading tutorial and KuCoin trading strategy Trade on KuCoin:  MoneyZG Crypto Course: Best Crypto Tools & Deals: FOLLOW ME: Twitter: MZG CLUB Discord: Instagram: TikTok: TIMESTAMPS: 0:00 KuCoin futures trading tutorial 0:47 Margin vs futures 1:42 Futures account deposit 2:32 Futures lite 4:31 USDT-M vs Coin-M 6:21 Futures funding rate 9:33 Mark vs index 11:12 Trade and order entry 14:06 BTC vs lot 14:39 Using leverage 15:09 TP/SL 17:26 Other order types 18:52 Live orders 19:31 Reduce order 20:41 KuCoin futures trading strategy 23:08 Risk 2% USEFUL VIDEOS: Celsius Network: Bybit: This video is for entertainment purposes only. It is not financial advice and is not an endorsement of any provider, product or service. All trading involves risk. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites

KuCoin Futures Trading Tutorial


KuCoin Futures Trading Tutorial


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this video is a complete kucoin futures
trading guide so i’m going to show you
how to get set up on the platform as you
can see here they do also have a
smartphone app as well um so you can use
this it has exactly the same layout and
everything it’s just obviously a lot
smaller on your phone i’m going to show
you how to do it on the platform for now
show you how to get set up with futures
get some money into your account then
how to work out different rates for
funding risk mitigation how to go ahead
and trade and then a small tutorial at
the end for
a trading strategy as well just a very
simple one so first we have to get set
up on kucoin if you don’t have a kucoin
account yet i’ll leave that link in the
description you can sign up right now
and then follow along if you need a
step-by-step guide for beginners i’ll
leave that in the description as well
plus the time stamps so lots of
information down there if you need it
firstly we need to understand the
difference between margin trading and
future trading on kucoin because they’re
not the same
if you come up to trade and then click
on margin trading it will take you
through to basically a trading screen
which is the normal trading screen down
in the bottom you can actually see
uh there’s cross margin here and
isolated margin now
margin trading is not futures trading on
kukan it’s different and they’re
actually different accounts so futures
is a completely different product margin
trading is when essentially you put
let’s say a thousand bucks on account
and uh kucoin may give you two or three
thousand to actually trade with you can
open positions that are worth a little
bit more than the cash you actually have
that is margin you know trading on
margin it’s not futures right here
you’re basically just loaning money from
kucoin um with the ability to trade more
than you actually have in your account
futures are a completely different
product and i’ll explain why throughout
this video firstly though we need to get
some money into our futures trading
account because kucoin separates all of
the accounts um so once you have an
account set up you need to come over to
the overview right here i’ll just click
on this and you can see all the
different types of accounts that you can
actually load up so you have a main
you can see the margin account as well
if you want to put some money onto your
margin account or your futures account
right here so all you have to do
obviously is put some money on your
account there i go through that in the
beginner’s guide if you need to know how
to do that that video is linked in the
description i’ll come over to transfer
though and you can see you can just
transfer it from your main account into
your futures account us dollars i have
some on my main account so you can just
transfer in some press confirm that’s an
internal transfer so there’s no fees for
that and that’ll just go into your
future as a trading account the reason
they’re split up is for risk mitigation
basically kucoin have a light trading
platform for futures if you just want to
get something done quick and i’ll show
you how to use that now before i show
you the pro platform if you come to
derivatives you can see futures light
right here i’m just going to click on
this this trades futures but it’s not a
professional setup essentially you
basically can go long or short uh very
quickly if you need to get something
done and you just kind of want to kind
of place bets on where the next candle
will be or you want to kind of scalp you
can actually just get orders done very
quickly with this
so up on the top right hand corner you
have your assets i transferred 100 bucks
into this for the video and then down
here you just can very simply place an
order so let’s say i want to put 100 on
i can click 100. but then you can add
another 10 to this you can do that and
then obviously add 500 and i you know it
goes on forever um so what you can see
here is 5x leverage that i’ve got
obviously you can turn this up um you
know i wouldn’t recommend using too much
leverage if you’re a beginner definitely
don’t use too much leverage um you know
just maybe try on kind of one 1x
you know before you you get a bit more
comfortable with it but this ver this
very simply this light platform just
lets you bet long or short on the price
over the short term it’s not for
professionals really but if you just
want to take a quick bet so let’s say
you know i went with 40 right here and i
would go 5x leverage as you can see so
i’m going to do 5x click long and then
you just really quickly put an order in
here so you can see the leverage is 5x
the execution price basically just a
market order so you’re going to very
quickly go through and go long and the
principal is 40 right there so i’m just
going to click off but if you went
through with that essentially you’d go
down to my earnings right here
and then your profit and loss or your p
l would be in here for you so you can
see if you’re in profit and loss this is
really a kind of beginner’s platform
just to quickly go long or short if you
want to you know kind of trade short
term and scalp obviously if you’ve got a
wider portfolio and you’re looking to
hedge your portfolio or do some more
professional stuff then we need to get
into the professional platform coming to
the professional trading platform then
i’m gonna first go through some really
important things you need to know about
trading futures and that is how you fund
your positions so we’re gonna go over to
derivatives and then futures classic
that’s basically what they call the
trading system right here so i’ll go
through all of this in a second i want
to come up to um some important things
though so we can look at the contract
specification so when you trade futures
you’re actually not buying and holding
any cryptocurrency really you’re just
kind of um you’re trading synthetic
contracts for the difference in price
between when you go long and then when
you close your position or when you go
short and close your position but you
can fund those contracts in different
ways there’s actually two ways you can
either fund them with usdtm which is us
dollar tether margin or coin margin
usd t margin does essentially you know
us dollar margin and then coin margin is
when you can use bitcoin ethereum i
think polka dot on xrp for right now so
if you click on assets here just look at
the assets you can fund um go over to
coin margin right here and you can see
bitcoin eth dot and xrp these are four
assets that are supported at the moment
anyway that you can use to fund your
positions um so you know the amount of
funding that you have an account
obviously lets you trade and leverage
off of that you know how much you have
on account is going to be how much you
can leverage so it’s really important to
understand most people will trade us
dollar margin because the us dollar
doesn’t fluctuate in price like a risk
asset does so you know if you if you’re
using bitcoin to margin you’re long um
and bitcoin is falling in price then
it’s like double trouble because you’ve
got bitcoin going down the price that
you’re long in and also your collateral
is going down in value as well so
potentially way more risky most people
use us dollar margin
but that’s the two ways you can
basically margin up your futures bets
now i need to go through what the
funding rate is if you’re trading
futures you have to either pay or get
paid a funding rate this is very
different to the spot market you don’t
have a funding rate in the spot market
so this is the futures trading screen
right here you can see on the left i’ve
got the bitcoin perpetual that means the
future has no expiry so you know it just
goes on forever um and you can see
either usd t margin or coin margin right
we’ll stick on the us dollar tether
margin futures and you can see all the
different type of coins that they uh
support so you can trade all of these
coins in the futures market so what we
really need to understand is the funding
rate and you can see that here so this
is the predicted funding rate which is
so in the futures world um all of the
contracts that you trade are you know
done on margin with a borrowing and so
when you’re long
you usually have to pay to go long
against a short so for every long in the
futures market there is of course a
short right if you go along someone help
set someone else has to go short and if
they go short obviously someone’s
long to you know kind of mix up right so
the funding rate is something that gets
usually every eight hours or so on
kucoin it’s every eight hours
what you have to know really is that if
the funding rate is positive as it is as
it is here you can see this plus this
means that long positions all long
positions pay short positions at the
next funding you can see the next
funding settlement on the right-hand
side is actually in about 30 minutes
time it happens every eight hours on
kucoin so there’s three funding
settlements per day it’s a plus 0.01 so
what that means is that
in 30 minutes longs so if you had a long
position in the futures market you would
be paying
as a funding rate to shorts now if this
funding rate is negative it means that
shorts short sellers will be paying
at this funding at this funding
it’s usually positive longs usually pay
shorts but not all of the time it’s
something to consider because um you
know we’ll we’ll just do the calculation
right here
so obviously the funding rate is um
one 0.01 so that’s that’s it as a
decimal now this happens three times a
day so we um take this
three times and then we times that by
365 and that is an annual rate of
interest that you’ll be paying so around
about 11
if you’re going long in the futures
market and the funding is always
positive so you’re paying you’re
basically paying 11 in interest to short
sellers um to you know to place these
bets so just take that into account when
you’re doing your profit and loss
especially if you have positions open
for a very long time or if you’re
borrowing a ton of money then fundings
you know the funding rate does eat into
your profits if you’re going wrong and
paying this funding all the time so just
um you know put that into your
calculations that you’re basically
paying 11 as an apy more or less if
you’re going long
and if you’re borrowing money that can
definitely eat into your your collateral
that you have on account the next thing
that’s very different in the futures
market is the uh different prices you
get you get a mark price and an index
price this doesn’t happen in the spot
market um so as you can see up on the
right hand side here you have the price
the actual price that people are trading
out on kucoin so this is bitcoin at
forty thousand three forty you have a
mark price and an index price the index
price as you can see here is a composite
index of the spot market
what um what every futures trading
exchange will do was will take
um the price of bitcoin on various
different exchanges like you know the
top exchanges like binance and ftx and
they will come up with an index price of
what the average price of bitcoin is
between exchanges
the mark price though
is the price that is very important for
the contracts on kucoin so when you’re
trading futures you’re not trading the
spot market you’re trading a contract on
kucoin and that is slightly different to
the index price you can see they
definitely are not the same right
they’re very very slightly different now
the mark price is what kucoin used
um to execute all of the contracts on
the system this only really matters if
you have a long position that’s going to
get liquidated or a short position if a
position is going to get liquidated then
kucoin will use the mark price as the
official settlement price for what’s
going on so if there’s a dump in the
market and you get liquidated they will
take this mark price as the official
price that all contracts are executed at
and so this is really important you can
see here that it’s very very similar but
it is different so just to know that the
mark price is something you need to look
at that’s where all of the liquidations
and all the important kind of contract
settlements will occur at this point i’m
going to take you through putting an
order in
on the future screen again this is
different to the spot market so at this
point if you definitely need some you
know some more help with the basics of
technical analysis
reading charts using charts as well in a
more professional way if you don’t know
what the order book is and everything
like that um then what i’m going to do
is link the kucoin beginner’s guide in
the description you can go and watch
that also i have a crypto investment
course with i think about 50 videos on
day trading technical analysis how to
trade how to think about trading um
definitely if you want to you know kind
of move up a level and get a little bit
more professional or at least kind of
know what you’re doing then the crypto
course goes through all of that and then
there are private discord groups that
i’m in you can ask me questions as well
so i’ll leave the trading course in the
description as well if you want to
go through that and you know learn a bit
more for now i’m just going to very
simply go through placing an order and
then a very simple trading strategy
that i think is you know very simple for
beginners to kind of uh get into that is
a support and resistance strategy now
you can see here i’ve actually drawn a
couple of yellow lines right here this
is support at the bottom and resistance
at the top just kind of two levels that
i’ve seen
based on what the chart is telling me on
the left hand side you can click this
button right here this is a trend line
and then just click to draw this on now
obviously i’ve got these lines on here
already where would i draw these well
you can definitely see
it kind of stands out right there’s an
area where the price kind of hits
support and bounces off a few times so
that’s a support level and right here i
can definitely see a like a resistance
level where the the price is kind of um
getting around and being a bit sticky at
so that’s why i put these two lines on
and then i’m going to use those as a
very simple strategy what i’m going to
get on to now though is putting an order
in and all the different ways you can do
that with futures trading so on the
right hand side um this is where we put
in our orders on kucoin so i’m just
going to zoom in here so you can see so
the first thing is we can just press
this button right here and that gives us
the last traded price and you can see
this is the bitcoin price right here 403
uh yeah 40 309 if you keep clicking last
um then obviously it’s gonna you know go
to go to that amount um and the amount
of uh you know bitcoin that you want to
trade obviously obviously if this is a
theorem or something it will be
but you can see i’ve got a hundred
dollars on account down here um just as
you know for the video then what i can
do is basically just say i want to you
know i want to press 25 percent of that
now what you can see i pressed 25
percent of a hundreds obviously 25
dollars but it’s come up here with 120
dollars why is that well i’m actually
using leverage so you can see i’ve got
5x leverage on here if you’re a beginner
please don’t trade with leverage just go
down to 1x or something
just to try it out obviously the more
advanced you get you might want to use
you know leverage is very dangerous if
you use a lot of it so i wouldn’t
recommend using too much but you know
we’re all can do what we want but the
amount that you trade you can you can
put this in btc
or you can go to the trading unit right
here i’m just going to click this and
you can change it to lots so a lot as
you can see here is .001 btc so instead
of having to type in 0.001 you can just
type in 1
and then it obviously gets rid of the
decimals so
whatever way you want to do it i’m just
going to keep it on btc right now
so we can either do 25 or 50 you know 75
of what you’ve got an account or you can
just go in here and manually set that in
in terms of leverage like i said
beginners please don’t use too much
leverage you know you can get wiped out
basically right so
um you know if you have a 10 or 20 you
know let’s say a 10 move in bitcoin but
your 10 10x leverage obviously that’s
you know pretty crazy in terms of how
um you know your initial capital can get
wiped out so i would not recommend
anything more than kind of five
six x leverage 10x leverage like at
absolute max um but everyone is
obviously you know um on their own
choices with that one
now what we need to do
is uh put in take profits and stop
a tpsl as you can see right here now if
you can’t see this
on your trading screen
it doesn’t come up automatically so what
you have to do is come up to the top
left and click these settings right here
and then go to i think it’s features and
you can see some of these will be turned
off i have them all turned on um so you
should be able to see all of them are
kind of green so
some of the pro features you need to
turn on and i would recommend that so
that you can come down here and put a
take profit and stop loss in
what what are they
um well a take profit is obviously
a price where you want to sell and you
know get out at a profit now that’s
different if you’re going long or short
obviously going long it means you want
to buy at a price say forty thousand and
then sell above that so let’s say the
price is forty thousand three sixty i
wanna take profit at 42 000.
and you can see it works out my profit
rate at 21
so if i get in at 40 000 361 and get out
at 42 my profit rate’s 21 21 but you can
also you know click these buttons and it
will auto fill that take profit level
for you
um what you can also do is obviously
look and actually find a level i would
say if you went long here you’d kind of
take profits at
potentially 43 something like that so 43
000 right so that would be a 33 percent
now a stop loss is the complete opposite
if you’re going long
it’s a level underneath your trade
where you kind of sell out your position
and you take a loss
this is to stop any further losses so
when you’re trading on leverage as you
can see here
you know it it can very quickly kind of
wipe out your account right if you’re on
5x leverage
you drop 20 basically you know
everything’s out right like you your
initial um
your initial balance is gone
so obviously people put in a stop loss
when they trade on leverage to try and
mitigate some of the downside risk and
kind of cut their losses very early
before it gets really out of hand you
don’t have to use a stop loss but a lot
of people do you can see you can just
put five percent in here 15
or find a level on the chart and then
put it in manually
also you can have this drop down box
right here
hidden means that when you put your
order in it won’t be shown on the screen
so other people can’t see it doesn’t
really matter
you know i wouldn’t recommend using it
that it really doesn’t matter unless
you’re trading very very large amounts
post only and ioc ioc is immediate or
cancel it means that when you put an
order in and you have your your limit
price right here
it either trades immediately or just
gets completely cancelled
post only
is something that you can use when you
want to get maker or tr or taker trading
so on most trading platforms and kucoin
is the same if you are a maker of
liquidity you actually get charged a
little smaller amount for your trading
fees rather than if you’re a taker of
so the way that you would be a maker of
liquidity is if you let’s say you’re a
buyer you actually put your order on the
book a little bit below so that it
doesn’t trade straight away and then you
hope that someone else comes and hits
your order a little bit after the fact
you are there for a maker and he is
therefore he takes your order and
therefore is a taker makers place
slightly lower trading fees post only
basically prevents you from paying those
taker fees where if the order can be
done straight away it will actually just
cancel the order so
it just makes sure that you never take
anyone else’s orders and you don’t
become a taker again not massively
important in my opinion so basically
that is it for putting in orders you
just get all of your levels set
um and if you want to put take profit
and stop losses in you can do that but
you don’t need to then you just go by
long um or sell short whatever you want
to do and your order will come down here
to the left-hand side and it will show
you your running p l it will show you
you know your your profit and loss or
anything like that um take profit and
stop loss levels and everything you can
see all of your trade details right here
and if you want to cancel it that will
just be on the right hand side you can
just cancel with the order and it will
basically trade out for you now there’s
a few different ways you can also trade
out of your order
so the first one is
um when you trade basically you’ve got
an open futures position and you don’t
actually you don’t actually own any you
know crypto so let’s say you go long and
you you buy to go long a thousand
dollars worth
um what you can do is actually reduce
your order a little bit and not sell out
the whole thing what you can do is
essentially sell short
um and reduce the amount that your order
is right so if you sell short 500 what
you do is basically just net off um part
of your your order right so you had a
thousand long now you go short 500 so
you’re a net long 500 but what you can
do is actually press this reduce only
you can see reduce only order will only
reduce your position does not require
margin to be frozen if the order would
increase your position it’s amended down
or cancelled right so what you can do is
when going long if you say i really
don’t want to
you know add to my risk position you can
just press this and then that order will
only be able to be reduced and not added
or you can just sell short and kind of
you know remove some of that order so
your net position is whatever you want
it to be um so that is putting an order
in on kucoin with all of the different
options now i’m going to quickly show
you a way to think about risk mitigation
when you’re putting orders in and trying
to get some levels just very simply with
this training strategy right here um
obviously there’s a lot i can’t go
through in this video so if you want to
know more about
thinking about how to read the market
and everything i would recommend the
course or at least join the public
discord groups
there’s a trading group in there i’ll
leave that as a pin comment
but what we want to do is find out how
much risk we are taking um and if that’s
okay for this trade so the first thing
we can do is come up to the top right
and basically put in some you know put
in some details and see how much
potential return we’ve got
so what you can see with this trading
strategy it’s just a really simple
support and resistance strategy so down
here i’ve drawn this line this line
because you can see the price actually
hits this line a few times as you can
see and bounces off this would be known
as support and then this resistance line
here i’ve drawn because
support previous support turns into
resistance you can see a couple of times
where the price kind of
trades around here for a little while
kind of met resistance here as well met
resistance here so we’re now up at the
resistance line um so we can actually
figure out kind of how much we would
make if we would go long here expecting
to break through this resistance and
possibly return up to this level at
let’s say 43. so you can use the
um so i’ve got the
you know the profits calculator here so
let’s say i’m buying long and i’m using
five times leverage my entry price let’s
call it 40 000
and the close price let’s say 42 000
and i want to trade point one bitcoin
start calculation you can see my cost is
eight hundred dollars my profits two
hundred dollars my return is 25
so that would be you know a decent ratio
for me i would say for 5x leverage now
if i turned it down to like 2x leverage
you can see
uh the profit you know goes goes to 10
roe essentially because you’re not
leveraging as much you’re not borrowing
as much your position is smaller and so
that percentage
as a percentage profit on your initial
obviously goes down a little bit but you
can see the closed price or the
liquidation price you can go through and
play with these
liquidation price for example if you go
with 5x leverage your entry price is 40
and then actually the trade moves
against you so it starts going down
let’s say you trade 0.1 btc your
liquidation price would be 32 200. at
that point if the price got down there
basically kucoin would liquidate your
position and you’d be out so good to
know this before you actually get into
some trades now i want to show you a
very quick calculation of how much to
risk per trade a lot of pro traders will
suggest not ever risking more than two
percent of your portfolio per trade and
you can use this as a position size
calculator to tell you how much to trade
so what i want to do here and let’s say
i have a long bias here so i’ve i’ve
traded my um support and resistance
and you can see that we’ve come off this
resistance you know but i’ve got a long
bias and i think we’re actually going to
break through this resistance level and
go up to these um these levels up here
so i’d be looking at entering a pr
entering along right here around 40 300
and my
my stop loss to to mitigate the downside
i would put it in around about this
level here the reason i say that is
because if you go back you can see this
price level has been a resistance level
for you know a good few weeks right down
here this level here as well as
resistance and then over here is
resistance as well and then over here is
resistance as well so i would um i would
suggest that if we are entering a new
bullish phase this would be the area
where it would bounce
and so i want to give my stop-loss a
little bit of room but if it goes down
through this stop loss then essentially
i’m wrong and it’s going to potentially
you know go down to this secondary
support line so i would put a stop loss
in around
call it 39 200 with an entry at 43.99 so
we’re going to put this in here you can
get this um calculator on you know just
google it crypto position size
calculator i’ll try and leave the link
in the description but let’s say the
open price to make things easy
let’s just say 40 000 and the stock
uh let’s say 39 and a half thousand
something like that and then the account
you’ve got 10 000 on account and you
only want to risk 2 per position
so let me make this bigger for you uh so
open price 40 stock price 39 500 10 000
balance and you wonder is two percent of
that if you calculate this you can see
that you can go in uh a position size of
0.4 bitcoin
so this tells you how big your position
can be while whilst only risking two
percent now if your stop-loss price was
lower let’s call it
38 000 calculate you can see the
position size goes down because the
potential loss is obviously a lot lower
right um so
to keep it at a two percent risk of the
portfolio at losing you obviously have
to uh make your position smaller so
hopefully that makes sense now i know
let’s say uh i want to do this at
39 000 calculate uh i know that i can go
ahead and trade right here trade at this
level and basically come and enter you
0.2 or whatever it told me it was um and
then even if my trade goes in you know
against me and i get stopped out down
here um i will only lose two percent you
can you know potentially go again uh per
trade you know with that um strategy if
you need to know way more about
technical analysis how to read charts
and everything like that i’ve got some
other helpful videos for beginners i’ve
also got an entire crypto course trading
groups as well private groups you can
come and ask me questions as well so
check that out if you need more help if
you want to sign up for kucoin you don’t
have an account i’ll leave that link in
the description as well i’m james with
money’s eg cheers for watching and i’ll
see in the next one