Frequently Asked Questions About KuCoin Futures (Part 4)

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. 

 

Limit Order
Pre-Specified Price  Market Price  Executed Immediately  Order Type 
  Sell  Yes  Taker 
<  Sell  No  Maker 
  Buy  Yes  Taker 
>  Buy  No  Maker 

 

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. 

 

Q20Some 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  
Ticker Symbol   XBTUSDM   XBTMM21  
Expiry Date   Perpetual   2021/6/25 08:00:00 (UTC)  
Max Order Quantity   1,000,000 lot(s)   10,000,000 lot(s)  
Max Leverage   100x   20x  
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 

 

Q24Are 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. 

 

KuCoin Futures is offering bonus for newbies!  

 

Enable Futures trading now to claim the bonus! Futures trading is a 100x magnifier of your profits! Try now to leverage more profits with less funds! 

 

🎁 Bonus 1: KuCoin Futures will airdrop bonus to all users! Enable futures trading now to claim up to 20 USDT of bonus for newbies only! Bonus can be used in Futures trading and profits generated from it can be transferred or withdrawn! For more details, please check KuCoin Futures Trial Fund. 

 

🎁 Bonus 2: Futures deduction coupon has been distributed to your account! Go claim it now! The deduction coupon can be used to deduct Futures trading fees of random amount. For more details, please check KuCoin Futures Deduction Coupon. 

 

*How to Claim?  

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Tap into “Futures”---> “Deduction Coupon” in KuCoin app (or click here). 

 

3 Steps to Start Futures Trading 

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Tutorials: 

Web 

APP 

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. 

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