PrimeXBT Futures Trading 2024 Beginners Guide
Futures trading is a financial contract that allows traders to potentially profit from changes in the underlying asset’s price, whether it’s going up or down. PrimeXBT is a trading platform that offers contracts for differences (CFD) trading for a range of assets, including cryptocurrencies, Forex, commodities, and indices, as well as a variety of crypto futures, such as Bitcoin, Ethereum, and Litecoin. The platform emphasizes copy trading, allowing users to replicate trading strategies employed by more experienced traders.
On PrimeXBT, users can trade eight different crypto futures contracts, which are agreements that oblige you to buy or sell a specific cryptocurrency at a predetermined price at a future date. This allows users to speculate on crypto price movements without owning any underlying assets. When trading crypto futures, you can enter a “long” position, betting that the price will rise, or a “short” position, betting that the price will fall. This means you can potentially profit regardless of market direction.
PrimeXBT offers an adjustable leverage system, allowing for leverage of up to 200x on cryptocurrencies like Bitcoin, Dogecoin, and Solana. This lets traders tweak their positions to match their risk appetite and profit objectives. The leverage system also allows users to switch between cross and isolated margins for greater risk management. “Stop loss” and “take profit” orders can help users modify leverage and other parameters after opening their position.
To start trading futures on PrimeXBT, users need to create an account, fund it via their preferred deposit method, select their desired futures market from the dropdown menu in the PrimeXBT futures trading dashboard, customize their trade according to margin and other parameters, and track their order to ensure it’s performing as expected.
While futures trading comes with advantages such as hedging, liquidity, leverage, diversification, and arbitrage, it also poses risks such as volatility, regulatory risk, counterparty risk, and overtrading. Therefore, understanding the advantages and risks of futures is essential, as it allows traders to navigate the market more confidently.
PrimeXBT offers eight crypto futures, including Bitcoin, Ethereum, and Litecoin, and allows users to trade on an adjustable leverage system. However, it’s important to note that investing is speculative, and when investing, your capital is at risk. PrimeXBT is not available in the US.