Q19: Why does my Limit order get filled immediately, whether I submit a Limit Buy or Limit Sell order?
A: If you trade with a Limit order, then you will use a pre-specified price to buy or sell the contract. The final execution price will not be higher than the pre-specified price if it is a buy, and not be lower if it is a sell. When you place a limit order, if the order is not matched immediately against an existing order on the order book, the order will stay in the orderbook and become a maker order.
However, if the pre-specified price of a limit order is greater than or equal to the market sell price, or lower or equal to the market buy price, the order will be executed immediately and become a taker order. In this case, the order will be charged the taker fees.
|Pre-Specified Price||Market Price||Executed Immediately||Order Type|
For example, let’s say the BTC price is $35,000 now, if we put in a Limit buy order at $36,000 (in case the BTC will break through $36,000), then this order will get filled instantly the moment when we put. As the pre-specified price of $36,000 is greater than the market sell price, it will be executed as a taker order as mentioned above.
If you want to set a stop price which will be triggered only when the market reaches a pre-specified price, then you’re recommended to trade with Stop-Limit/Stop-Market order.
Q20: Some of my Futures balance is frozen in the “Order Margin” column. What are these orders? How can I cancel it?
A: This is because you have set a Stop order. Please be noted that, when you place a stop order, no funds will be frozen for margin usage. But once the order is triggered, the system will freeze the corresponding funds as margin based on the order quantity and the minimum amount of funds needed to open a position. And you can see it in the “Open Orders” column.
To freeze it, you can cancel the Open Orders.
Q21: What’s the difference between Perpetual and Delivery contracts?
A: There are two main differences between Perpetual and Delivery Contracts.
First, the biggest difference between perpetual contracts and delivery contracts is that the highest leverages are different. Currently, the BTC and ETH perpetual contracts that KuCoin Futures has launched provide up to 100x leverage, while delivery contracts support up to 20x leverage.
Second, Perpetual Contracts have funding, with no expiry date or settlement fee. However, Delivery Contracts don’t have funding and will charge the settlement fee on the expiry date. For better understanding, below is a comparison chart for reference.
|Perpetual Contracts||Delivery Contracts|
|Contracts||BTC PERP/USDT||BTC Quarterly 0625|
|Expiry Date||Perpetual||2021/6/25 08:00:00 (UTC)|
|Max Order Quantity||1,000,000 lot(s)||10,000,000 lot(s)|
|Contract Size||1 lot(s) = 0.001 BTC||1 lot(s) = 1 USD|
|Funding Rate||Yes, differs in each contract||/|
|Settlement Fee||/||Yes, 0.025%|
Q22: What’s the difference between Spot and Futures trading?
A: Firstly, they are different in terms of the market. In a Spot market, you can trade cryptocurrency spots and exchange between different cryptocurrencies. For example, you can trade your Bitcoin for Ethereum at a price. For the Futures market, on the other hand, you trade financial contracts with others.
In the meantime, a contract in KuCoin Futures is an agreement to buy or sell a particular crypto asset at a predetermined price and a specified time in the future. All the trading products on KuCoin Futures are contracts of cryptocurrency, which represent the value of a specific cryptocurrency.
More comparison details are shown below:
|Spot Trading||Futures Trading|
|Leverage||N/A||Up to 100x, less funds required|
|Flexibility to Long or Short||N/A||Yes, profit in either direction|
|Crypto Prices||Based on market supply and demand||Based on Spot price plus the Futures premium|
Q23: If I use Futures and get liquidated, will I lose all the money in the Futures account too?
A: For now, KuCoin Futures adopts the isolated margin mode. In this mode, funds used for a certain position are a fixed amount, and any Available Balance you may have will not be used to add margin to your position. That is, the maximum funds you may lose is limited to this fixed amount. This is useful for a speculative position and traders may limit the risk in an easy way.
As the margin is not shared among all the margin accounts, it’s recommended to enable the “Auto-Deposit Margin” feature in the Pro version to better control the position risk and avoid the liquidation.
Q24: Are the KuCoin Futures Perpetual funding rate the same regardless of leverage?
A: Funding is only related to Position Value and Funding rate, not directly related to leverage.
Calculation formula: Funding = Position value * Funding rate
But here, the Position value and leverage are related. When the principal is the same, the greater the leverage, the greater the value of the position you can open. Refer to this article to learn more.
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3 Steps to Start Futures Trading
Thank you for your support!
KuCoin Futures Team
Risk Warning: Please pay attention to the risk control of Futures trading. It is recommended that newbies control the leverage within 5x and set the Take Profit and Stop Loss on your position.