How to Multiply Profits When the Price Goes Down?
Assume you hold 1 BTC. With 10x leverage, you can sell 10 BTC short in the BTCUSD futures market. When the BTC price goes down from 15,000 USD to 14,000 USD, the profit calculation is as follows:
10 * (15,000 - 14,000）= 10,000 USD
Through futures trading, even when the market declines, you can make multiplied profits.
| Position Amount | Entry Price | Exit Price | PNL |
| 10 BTC | 15,000 USD | 14,000 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 Sell Short in Coin-Margined Contracts
Assume using 5x leverage to sell short with cross margin in the BTCUSD market.
1. Pre-Trade Setup
(1) Log in to your CoinEx account:
Visit CoinEx's official website (https://www.coinex.com), log in to your account, and select [Futures Markets] under [Futures] in the top navigation bar.
(2) Choose the trading pair and transfer assets:
Click [Coin-Margined Contract] and choose the BTCUSD trading pair. Click the "transfer" button, set the direction from [Spot] to [Futures], confirm the coin type, enter the amount, then click [Confirm].
(3) Set margin mode and adjust leverage:
Click the [Cross] and [5X] button, set margin mode as [Cross], select [5X] leverage, then click [Confirm].
2. Open a BTC short position
(1) Take a limit order as an example, set the [Order Price] and [Amount], then click [Sell/Short] to submit the order.
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) You can check position details in [Current Position] after the order is executed.
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, click [Close] in [Current Position] and 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
In the bottom right corner 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.