The Ultimate WEEX Futures Trading Guide

Futures trading on WEEX offers traders an exciting opportunity to speculate on the cryptocurrency price movement. WEEX combines advanced technical tools, real-time data, and flexible leverage options to help traders execute trades. Additionally, WEEX offers excellent security features to ensure a safe trading environment.

This comprehensive WEEX futures trading guide will explain the process of trading leveraged tokens on the platform. 

Launched in 2018, WEEX is a centralized cryptocurrency exchange that allows users to buy, sell, and trade cryptocurrency. The platform is registered in Singapore and has operational hubs in Dubai and Taiwan. Additionally, it holds the Money Service Business (MSB) registration with FINTRAC in Canada and FinCEN in the United States.

WEEX provides users with access to over 650 cryptocurrencies, including popular coins such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). It offers several trading services, including spot trading for basic buying and selling of cryptocurrencies and futures trading with over 700 USDT-Margin trading pairs and leverage up to 400x. Additionally, traders can use different advanced order types to execute trades. 

The cryptocurrency exchange ensures a safe trading environment through robust security features, including two-factor authentication (2FA). WEEX also provides Proof of Reserves (PoR) to ensure all assets on the platform are completely backed. Overall, WEEX is a well-known exchange that facilitates hassle-free trading of digital currencies.

Before explaining the WEEX futures trading guide, users need to understand what a futures contract is. In simple terms, a futures contract is a financial agreement between two parties to buy or sell a digital asset at a predetermined price or at a future date. It involves speculating on a cryptocurrency's price direction, offering traders greater flexibility and the potential to profit from both upward and downward market movements.

Futures contracts are standardized contracts and traded on cryptocurrency exchanges using leverage, such as WEEX. Leverage allows traders to open larger trading positions than their initial capital would permit. These contracts enable traders to profit from price increases (going long) and decreases (going short). Investors also use futures contracts to hedge against price volatility. 

WEEX offers several key features for cryptocurrency traders interested in futures trading. The platform provides the following features:

WEEX caters to cryptocurrency traders and offers more than 700 trading pairs in the USDT-M futures market. These are the trading pairs that settled in the underlying digital currency, particularly Tether (USDT).

WEEX provides users with access to advanced futures trading tools, including customizable order types, trading indicators, and more. It offers intuitive trading charts and real-time market data, making it easy for traders to analyze markets.

Traders can use leverage up to 400x when trading futures contracts on WEEX. It allows them to open positions greater than their initial deposits. However, it is essential to understand that a higher leverage involves a greater risk of liquidity. You should know that 400x leverage is available for selected cryptocurrency trading pairs, and the maximum leverage varies among digital assets.

Users can benefit from competitive futures contract trading fees on WEEX. The platform offers low futures trading fees: 0.02% for makers and 0.08% for takers.

With advanced security protocols, such as two-factor authentication (2FA) and SSL encryption, WEEX ensures your account and funds remain safe.

To fully understand the process of futures trading on WEEX, users should become familiar with the available order types for executing trades. These order types give traders control over their entry and exit points, allowing them to know when to open and close a position. By understanding and applying order types correctly, users have a better chance of controlling unnecessary losses, improving profit potential, and effectively managing risk.

The platform offers the following order types:

• Market Order: It is used by traders to execute trades at the current market price in the order book. For example, suppose Ethereum (ETH) is trading at $3,500, and you place a market order to buy it. The order will execute immediately at the best available price. 
• Limit Order: A limit order allows traders to specify the exact price at which they will buy or sell a cryptocurrency. For example, you want to buy ETH at $2,600, and you place a limit order. The order will execute once the price drops to that level.
• Take-Profit Order: This order type allows traders to secure gains by setting a price at which they want to close the position automatically. For example, you buy Bitcoin (BTC) at $105,000 and place a take-profit order at $107,000. The order will execute automatically once the targeted price is achieved. 
• Stop-Loss Order: This order type helps minimize losses in volatile market conditions by automatically closing a position when the set price target is achieved. For example, a trader buys ETH at $3,000 and sets a stop-loss at $2,800. If the price drops to $2,800, the system will automatically execute the trade. 
• Trigger Order: Traders can use this order type to set a condition that activates a buy or sell order. For example, you want to buy Bitcoin (BTC) only if its price breaks above $100,000. You set a trigger buy order at that price. The order will execute immediately once the targeted price is hit. 
• Post Only Order: It is a type of limit order that adds liquidity to the market. It gets cancelled immediately if it matches an existing order. For example, you place a post-only buy order for Bitcoin (BTC) at $101,000. The post-only order is cancelled if it matches an existing order at that price.

Futures trading enables cryptocurrency traders to speculate on the price movements of digital assets without owning the underlying asset. Traders can agree to buy or sell a digital currency at a set future price.

To open a futures position on WEEX, follow these steps.

Log in to your WEEX account, and if you don’t already have an account, follow this step-by-step guide on creating an account on WEEX.

Navigate to the “Futures” tab on the homepage, and tap “USDT-M Futures” from the drop-down menu. It will take you to the futures trading interface where you can place a trade.

WEEX offers an advanced trading interface for trading perpetual contracts. The key features of the interface include:

• Trading Pair Selector: You can select a trading pair to trade from the trading pair selector located at the top left corner of the interface. Click to open a dropdown list and pick a futures trading pair. 
• Trading Chart: Powered by TradingView, the WEEX trading chart offers advanced technical tools and displays real-time price movements for the selected token. 
• Order Book: In the middle, the order book displays all open buy and sell orders for the selected pair. 
• Order Panel: Located at the far right side of the interface, the order panel enables traders to configure margin mode, leverage, order direction, order types, and price to place a trade.
• Positions Tab: After opening a position, traders can check its details under the positions tab located below the trading chart.

Tap the trading pair selector and choose a futures pair you want to trade, such as BTC/USDT.

You can adjust the trading chart based on your trading strategy. For example, if you are scalping futures contracts to benefit from quick price movements, you can pick a short time frame, such as 1-minute or 5-minute. Additionally, you can select between candlesticks and add an indicator to the chart.

In the order panel, select the margin mode between cross and isolated. In the cross margin mode, the available balance in your margin account is shared across all open positions. On the other hand, when you select the isolated margin mode, each position has its own dedicated margin that is not shared across other open positions.

Tap the leverage tab and select the leverage ratio. WEEX offers up to 400x leverage on futures contracts. It allows you to control a larger trading position with a smaller amount of your own capital. However, you should remember that selecting a higher leverage increases the risk of liquidation.

Select the order type, such as the Limit Order. Enter the order amount, and you can also add Take-Profit (TP) and Stop-Loss (SL) values to manage the risk appropriately. After this, tap either “Open Long” if you expect the asset’s price to increase or click “Open Short” if you speculate the asset’s price will fall. 

Navigate to the Positions tab at the bottom of the interface to check the details of your position. It displays crucial data, including position size, unrealized PnL (Profit and Loss), realized PnL, market price, liquidation price, and more.

To close a position, tap “Close” in the order panel. Next, select an order type, such as the Limit Order. Enter the amount at which you want to close your position. Review the details and click either “Close Short” or Close Long.” Alternatively, navigate to the Positions tab, select the futures contract you want to close, tap “Close,” and the system will automatically execute the trade at the current market price.

The following tips can help beginners successfully trade futures contracts:

• Leverage amplifies both profits and losses. Traders should understand how leverage works before trading with it. Selecting a lower leverage, such as 5x or 10x, can help in avoiding liquidation risk when trading futures contracts. 
• Setting stop-loss orders can help traders protect their capital and limit potential losses. It automatically closes a position when the price falls below a specific level, known as the stop price. 
• As a beginner, start with a small amount. Avoid risking capital more than you can easily afford to lose. 
• Traders should always stay up to date with real-time data, indicators, and charts to make well-informed decisions.

Futures trading on WEEX enables traders to capitalize on market movements and increase their profit potential. WEEX offers an intuitive trading interface, deep liquidity, and a wide range of technical tools and trading pairs, making it easy for traders to apply different strategies. By combining quick execution and strong security, WEEX ensures you can trade futures contracts with confidence.