How to Multiply Profits When the Price Goes Up?
Assume you hold 1 BTC. With 10X leverage, you can buy 10 BTC in the BTCUSD futures market.
If the price of BTC rises from 15,000 USDT to 16,000 USDT, you can sell 10 BTC for a profit. The profit calculation is as follows:
10 * (16,000 - 15,000）= 10,000 USD
If you only use your own 1 BTC for Spot Trading, you can only make a profit of 1,000 USD. However, using 10X leverage for futures trading yields 10 times the profit.
| Position Size | Entry Price | Exit Price | PNL |
|---|---|---|---|
| 10 BTC | 15,000 USD | 16,000 USD | The amount of BTC equivalent to 10,000 USD |
Note: Calculations exclude premiums, margin fees, trading fees, and funding rates for simplicity.
Guide for Go Long in Coin-Margined Contracts
Assume using 5x leverage to go long with cross margin in the BTCUSD market.
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 [Coin-Margined Contract] and choose the BTCUSD trading pair. Click the "transfer" button, set the transfer direction (from [Spot Account] to [Futures Account]), confirm the coin, 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 long position
(1) Take the limit order as an example, set the [Price] and [Amount], then click [Buy/Long] to submit the order. You can view the position details in the “Current Position” section once the order is filled.
Note: You can also click on [TP/SL] to set Take-Profit and Stop-Loss prices when opening a position. After successfully opening a position, the Take-Profit and Stop-Loss orders will be set automatically.
(2) If the order is unexecuted, you can check the order details in the [Pending Order]. You can click the Edit button to modify the order, or click [Cancel] to cancel the current pending order.
3. Sell BTC to close the long position when the price rises 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 [Sell/Short] 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, and 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.