How to Trade Crypto on BTCEX

How to Initiate Trades?

Please open a perpetual contract position before initiating trades:

1. After logging in, select [Perpetual] from the top bar of your BTCEX account.

2. To select your trading pair, click the left-side arrow button.

3. Complete the required fields, verify them, and click [Confirm].

4. Go to the copy trade page and click [Details] next to your username on the right.

5. The position under [Positions] that we recently opened is a perpetual contract position.

You can also find it on the page for everlasting trading. The details of each position, including the liquidation price, risk level, and PNL, are shown separately.

The position data on the copy trade page is the trader’s own position data; the follower’s copy data is not included.

6. By clicking the "+" icon, you can increase or decrease the margin for each location.

How to Trade Spot on BTCEX Website?

Spot trading provides an easy way to trade and invest. A spot trade is a straightforward exchange of goods or services between a buyer and a seller at the spot price, which is the going rate in the market. When the order is filled, the trade happens right away.

1. Go to the BTCEX website and select the icon from the top-right menu.

2. Click [Login] from the top-right menu.

3. To access the spot trading page for any cryptocurrency listed on the homepage, click it. Alternatively, you can click [Spot] in the navigation bar.

4. At this point, you will be on the trading page interface.

1) Market and Trading pairs

2) Trading Volume of Trading Pair

3) Candlestick chart and Market Depth

4) Buy Sell Order Book

5) Type of order: Limit Orders/Market Orders

6) Buy Crypto

7) Sell Crypto

8) Recent Trades

9) Menu Items for Trades

10) Order Details

5. Let’s consider purchasing some ETH using USDT.

Fill out the price and the quantity for your order in the buying section (6) to purchase ETH. For the transaction to be completed, select BUY (LONG) ETH.

You can follow the same steps to Sell (SHORT) ETH.

• The default order type is Limit Order. If traders want to place an order as soon as possible, they may switch to Market Orders. By choosing a market order, the order will be filled instantly at the current market price.
• If the market price of ETH/USDT is at 4300, but you want to buy at a specific price, for example, 4000, you can place a Limit Order. When the market price reaches your set price, your placed order will be executed.
• The percentages shown below in the Amount field refer to the percentage amount of your held USDT you wish to trade for ETH, and you can pull the slider across to change the desired amount.

How to Trade Perpetual on BTCEX Website?

On the BTCEX, "USDT Perpetual" refers to contracts for USDT-Margined Futures.

Settlement in assets tied to the USDT: Contracts are settled in the USDT.

Expiration: Indefinite

Clear pricing guidelines: Each futures contract, sometimes called a "Contract Unit," specifies the quantity of the base asset delivered for a single contract. For instance, futures contracts for BTC/USDT and ETH/USDT only represent one unit of the corresponding base asset, just like spot markets.
 

• TP/SL Limit Order: The easiest way to understand a TP/SL limit order is to break it down into TP/SL price, and limit price. The TP/SL price is simply the price that triggers the limit order, and the limit price is the price of the limit order that is triggered. This means that once your TP/SL price has been reached, your limit order will be immediately placed on the order book.
• TP/SL Market Order: Similar to the TP/SL limit order, a TP/SL market order uses a TP/SL price as a trigger. However, when the TP/SL price is reached, it triggers a market order instead.

How to Set Take Profit and Stop Loss for My Orders?

What are take profit and stop loss?

Take profit (TP) and stop loss (SL) are predefined price limits. When the limit is reached, the position will be automatically closed to lock in profits/prevent further losses.

You can set TP/SL for all kinds of orders (limit, market, stop, and trailing stop). It is applied to the entire position (whether you increase or reduce your position). After the position is closed, the take-profit/stop-loss order will be automatically canceled.

TP/SL can be set when you initiate trades. You can also follow the steps below to set TP/SL:

1. On the Perpetual Trading page, click the Edit icon next to [Position TP/SL].

2. Choose Mark Price or Last Price as the trigger price to set take-profit/stop-loss targets.

What are Mark Price and Last Price?

As implied in its name, the Last Price refers to the latest transaction price of your selected contract. On the other hand, Mark Price is more complicated, its calculation is intricately linked to the Funding Rate. A detailed introduction can be found in this article Mark Price Index Price. 

3. To choose the take-profit/stop-loss ratio, you can either input or select a percentage or enter the price directly.

4. Click [Confirm] to complete the setting.

Frequently Asked Questions (FAQ)

How to View Profits?

Your profits and ROE are listed on Copy Trade page. To get more information, click [Details]. Trading details on your wallet page can also be found under [Perpetual Asset].

How to Close Positions?

Log into your trader account, then on the copy trade page, click [Details] next to your username.

Click the blue tab to close. Please note that each position must be closed separately. You can only close the whole position at market price rather than partially close.

Or you can visit the Perpetual trading page and close your position.

Liquidation Protocol

Liquidation

BTCEX uses the Mark Price to avoid unnecessary liquidations and to combat market manipulation.

What is the difference between Mark Price and the Last Price?

To avoid spikes and unnecessary liquidations during periods of high volatility, BTCEX Futures uses the Last Price and Mark Price.

The last Price refers to the latest transaction price at the contract was traded at. In other words, the last trade in trading history defines the Last Price. It’s used for calculating your realized PnL (Profit and Loss).

On the other hand, Mark Price is calculated using a combination of funding data and a basket of price data from multiple spot exchanges. Your liquidation prices and unrealized PnL are calculated based on the Mark Price.

Risk and leverage are adjusted based on the user’s absolute exposure; the larger the position, the higher the required margin, and the lower the leverage. A liquidation is triggered when:

Collateral = Initial Collateral + Realized PnL + Unrealized PnL

It is important to note that the maintenance margin change will directly affect the liquidation price. To avoid being liquidated (i.e. margin ratio hits 100%), please add more margin or reduce your positions. It is recommended to control the margin ratio below 80%.

Liquidation Price

Liquidation occurs when the Mark Price hits the liquidation price of a position. Traders are advised to pay close attention to the movements of the Mark Price and the liquidation price to avoid being liquidated.

BTCEX allows highly leveraged trading by using a sophisticated risk engine and liquidation model. The liquidation model might be intricate.

What happens during liquidation?

During the liquidation process, all open orders are immediately canceled. All users will be subjected to the same liquidation protocols referred to as “Smart Liquidation.” BTCEX takes full liquidation of a user’s position. For any traders that are cleared via forced liquidation and not by an order issued by the user, a liquidation fee will be charged on the amount liquidated.

It is important to mention that, as a general rule, users who hold small positions that enter liquidation are highly likely to be entirely liquidated. Users with larger accounts will see a smaller percentage of their accounts liquidated compared to smaller users. This is because the Maintenance Margin is based on a user’s position amount and not their leverage selection. As a result, the effective Maintenance Margin for smaller users is lower than the liquidation fee rate. As such, they are already bankrupt when first entering liquidation, regardless of the final price when clearing.

Liquidation orders

Note that all orders for liquidations are Immediate or Canceled orders. The order will fill as much as possible and cancel the rest.

The user’s position will be closed at the bankruptcy price, the Insurance Fund will take over the position, and the user is declared bankrupt. A portion of the remaining collateral (if any) will go to the Insurance Fund. If an account becomes bankrupt (negative wallet balance), the Insurance Fund will payout to balance the account back to 0.

Automated Negative Balance Clearance

When a user’s account balance falls into negative equity, BTCEX will use the Insurance Fund to cover the deficit losses in the user’s account. The automated negative balance clearance will be performed every ten minutes.

Please note the negative account balances will be automatically cleared for users who meet all the requirements below:

For negative balances in USDT-margined accounts, there are no open positions (cross or isolated) in the account.

• The user did not transfer him/herself to deficit losses in his/her account after liquidation.
• In cases where you did not meet the criteria stated above, please contact our Customer Service agents for assistance.

Insurance Clear Fee

When a user’s position is liquidated, a certain percentage of the Insurance Clear fee will be collected and contributed to Insurance Fund reserves, marked as ’’Insurance Clear’’ in the Transaction History.

Since the liquidation price will not change, it is recommended that users strictly control their position risks to avoid liquidation.
 
Please note:

• The Insurance Fund will take over the liquidation positions at the bankruptcy prices, and the bankruptcy prices may be out of the contract’s market price range but the bankruptcy price will not show on the K-line.
• We will send margin call and liquidation call notifications by mail, text message, and internal message. The notifications serve as a risk warning and cannot guarantee timely delivery. You agree that during your use of the Service, under certain circumstances (including due to personal network congestion and poor network environment), users may be unable or delayed to receive SMS or e-mail reminders. BTCEX reserves the right with no obligation to deliver notifications.