Trading Futures

A guide on trading futures on the Scallop exchange

Futures contracts, such as USDT-margined futures, enable traders to obtain exposure to cryptocurrencies without owning the underlying asset. It is similar to stock indices or commodity derivatives contracts. The value of a cryptocurrency futures contract is determined by the underlying digital asset it represents, such as Bitcoin or Ethereum.

A futures contract is a promise to buy an asset at a given date, and an option contract gives the purchaser the option to buy an asset at a certain price at a specified date. These two instruments allow you to increase your purchasing power, and have very different payouts depending on the price change. These instruments can be very useful for hedging, but many traders also use them to speculate.

Since futures trades can sometimes benefit from significantly greater leverage than the underlying assets, speculators may also face increased risk and margin calls that compound losses.

Scallop Futures makes it simple to trade crypto derivatives contracts. If you are already a user of the Scallop Exchange, you may begin by following these steps. If you are not, Sign Up and start trading.

Step 1: Go to "Balances" and select "Contract Account". Fund your futures wallet with any of the cryptocurrencies offered by Scallop Futures. You can easily transfer crypto from your Spot wallet to your Futures Wallet.

Step 2: Select the appropriate leverage as per your risk appetite.

Scallop reiterates that high leverage is an extremely high-risk trade which may result in losses and should be used only by experts who can manage their risks.

You can choose the level of leverage at the top of this dialogue box - it is currently set to 20x

Choose your level of leverage

No you are able to place buy and sell orders into the market, they will automatically apply the level of leverage that you have chosen to trade with.