Q13: Is it possible to open a Long and a Short position simultaneously?
As for now, KuCoin Futures does not support Hedge Mode yet, and it's not allowed to open Long and Short positions on the same trading pair at the same time. Therefore, if you hold a long position, and the reverse order is traded at this time, the position will be reduced.
For example, if you buy 2 lots with 2x leverage under a BTC contract and sell 2 lots on the same contract, then the quantity of positions will become 0. We have plans to add this feature in the near future, so please stay tuned for further updates.
Q14: Why am I showing profit when the price is actually higher than my entry price in my Short position? After I sold, it turned negative?
As we can see, the Unrealised PNL (also called floating PNL) is the profit and loss of your current positions calculated based on the price gap between the average entry price and the mark price. By default, the Unrealised PNL will change with the Mark Price.
In this way, if the latest market price is very close to the Mark price, then the profit rate when closing the position will be the profit rate that you see. But it’s known that the Futures market price constantly fluctuates wildly. It is recommended to pay attention to the Mark Price and latest mark price (namely, the Last Price) the next time you close a position.
For more detailed info about the position PNL, please refer to Know-How of Futures Trading: What Is Position PNL?
Q15: What is Mark Price, and how does it affect your position?
To avoid unnecessary liquidation because of the market volatility, KuCoin Futures sets the Mark Price to the Fair Price instead of the last trading price in the traditional market. The Fair Price Marking only affects the liquidation price and Unrealised PNL, without affecting the Realised PNL.
For the calculation of Mark Price, please refer to this tutorial.
Q16: My fill order has not been filled for hours on KuCoin Futures. Is this normal?
There are two types of orders, the Limit order, and the Market order.
A Limit order is an order that you place on the orderbook with a specific limit price that is determined by you. In this way, if you place a limit order, the order will not be filled until the market price reaches the limit price you set. It’s a good choice to use Limit orders to buy at a lower price or to sell at a higher price than the latest market price.
A Market order is an order to buy/sell at the latest market price. If you place a market order, the order will be filled instantly at the current market price, and it needs liquidity to be filled.
Q17: How does the leverage work in Futures trading?
In general, the leverage can help grow your funds to trade and magnify your profits. The fancy of leverage is that you can get started with less funds but get more returns.
Let’s say the BTC price is $55,000, and you’re going to trade with the BTC PERP/USDT contract. If you open 1 lot of BTC contracts without using the leverage, then it will cost you = (55,000*0.001) = 55 USDT as the initial margin. However, if you open 1 lot of BTC contracts by using 5x leverage, then it only costs you = (55,000*0.001)/5 = 11 USDT as the initial margin. (Note: 1 lot = 0.001 BTC in the BTC PERP/USDT contract)
It’s highly recommended that newbies set the leverage within 5x to reduce the position risk.
Q18: Why did I get this error message "The sell price cannot be less than the min. ask price" when shorting a certain trading pair on KuCoin Futures?
KuCoin Futures has a price protection mechanism. The buy order price cannot exceed the price = mark price + mark price x 5%, and the sell order cannot exceed the price = mark price - mark price x 5%.
This design is to protect the user's position, which can reduce the risk of users wearing positions under extensive market conditions.
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3 Steps to Start Futures Trading
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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.