How to Multiply Profits When the Price Goes Down?
Assume you hold 2,000 USDT. With 10x leverage, you can sell 1 BTC short in the BTCUSDT futures market. When the BTC price goes down from 100,000 USDT to 95,000 USDT, the profit calculation is as follows:
1 * (100,000 - 95,000）= 5,000 USDT
Through futures trading, even when the market declines, you can make multiplied profits.
| Position Size | Entry Price | Exit Price | PNL |
| 1 BTC | 100,000 USDT | 95,000 | 5,000 USDT |
Note: Calculations exclude premiums, margin fees, trading fees, and funding rates for simplicity.
Step-by-Step Guide: Open a Short Position with 10x Leverage under Cross Margin (BTCUSDT)
1. Pre-Trade Setup
(1) Log in to your CoinEx account:
Open the CoinEx official app, log in to your account successfully, and then tap on [Futures] at the bottom of the page.
(2) Choose the trading pair and transfer assets:
Click [USDⓈ-Margined Contract] and choose the BTCUSDT trading pair. Click the "transfer" button, set the direction from [Spot Account] to [Futures Account], confirm the coin and enter the amount, then click [Transfer].
(3) Set margin mode and adjust leverage:
Click the [Cross] button at the Futures page, set margin mode as [Cross], select [10X] leverage, then click [Confirm].
2. Open a BTC short position
Take the limit order as an example, set the [Price] and [Amount], then click [Sell/Short] to submit the order. You can check position details in [Current Position] after the order is executed.
Note: You can also click on [TP/SL] to set Take-Profit and Stop-Loss orders when opening a position. After successfully opening a position, the Take-Profit and Stop-Loss orders will be set automatically.
3. Buy BTC to close the short position when the price falls to the expected level
(1) Option 1: Close position in the order placement section
Take a limit order as an example, set the [Price] and [Amount], then click [Buy/Long] to submit the order. Your position will be closed when the order is filled.
Note: When closing a position using a limit order, ensure the order quantity does not exceed the current position size. If it does, executing the order will create a position in the opposite direction.
(2) Option 2: Close the position via [Current Position]
Take a limit order as an example, scroll down to the bottom of the page, click [Close Position] in [Current Position].
Switch to [Limit], set the [Price] and [Amount], then click [Confirm] to submit the order. Your position will be closed when the order is filled.
(3) Option 3: Use [Liquidate] or [TP/SL] to close the position
Scroll down to the bottom of the page, select [Liquidate] or [TP/SL] to close a position.
Note:
- The “Liquidate” feature does not support partial position closing.
- When [Liquidate] or [TP/SL] is applied, the system will use an Auction-style Liquidation Strategy to close the position. For more details, please refer to Introduction to Auction-Style Liquidation Strategy and Introduction to Futures Take-Profit and Stop-Loss (TP/SL)
Risk Reminder
Futures trading presents the opportunity for significant profits with a smaller initial investment. However, if the market direction is incorrectly assessed, losses can also be magnified. Therefore, traders should exercise caution and avoid high-leverage trades to prevent liquidation or negative balances.