Futures trading has become a cornerstone of modern digital asset markets, offering traders the ability to speculate on price movements with leverage, hedge existing positions, and access 24/7 liquidity. Understanding the core mechanics—such as trading times, order types, leverage management, and position limits—is essential for both novice and experienced traders. This comprehensive guide breaks down the key futures trading rules to help you navigate the market confidently and efficiently.
Trading Hours and Settlement Schedule
Futures markets operate on a 7×24-hour basis, ensuring continuous trading throughout the week. However, a brief interruption occurs daily at 16:00 (GMT+8) for settlement and delivery processes. The duration of this pause varies by contract type due to differences in system processing times.
For example, BTC contracts may take longer to settle than ETH contracts. If BTC is still undergoing settlement while ETH has completed it, ETH trading will resume first. During the final 10 minutes before delivery, users can only close existing positions—no new positions may be opened. This restriction helps stabilize the market during critical settlement phases.
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Understanding Trading Types
Futures trading revolves around two primary actions: opening and closing positions. Each action can be executed in two directions: long or short.
- Open Long Position: Buy contracts when expecting the market to rise. Increases your long position.
- Close Long Position: Sell to exit a long position when bullish momentum fades. Reduces long exposure.
- Open Short Position: Sell contracts anticipating a price drop. Increases short position.
- Close Short Position: Buy back contracts to exit a short trade. Reduces short exposure.
These actions form the foundation of directional trading strategies and are applicable across all contract types, including weekly, bi-weekly, quarterly, and bi-quarterly futures.
Order Types for Precision Execution
Choosing the right order type enhances execution speed, cost efficiency, and risk control. Here are the main order types available:
Limit Order
Set a specific price and quantity. The trade executes only at your specified price (or better). Ideal for controlled entry and exit. You can select from three execution modes:
- Post Only: Ensures your order doesn’t match immediately, acting as a maker order.
- FOK (Fill or Kill): Must be filled entirely or canceled.
- IOC (Immediate or Cancel): Partial fills allowed; unfilled portion is canceled.
If no mode is selected, the order defaults to “always valid.”
Trigger Order
Pre-set a trigger price, order price, and quantity. When the market reaches the trigger price, a limit order is automatically placed. Useful for stop-loss or take-profit setups.
BBO (Best Bid/Offer) Order
Enter only the quantity—no price input required. The system uses the current best opposing price:
- Buying? Uses the top ask price.
- Selling? Uses the top bid price.
This streamlines execution during fast-moving markets.
Optimal Top N BBO Price Order
Enhances BBO functionality by letting users choose from the top 5, 10, or 20 best prices for faster fills. Eliminates manual price analysis and is available for both limit and trigger orders—perfect for capturing sudden market moves.
Flash Close
Close positions instantly using the top 30 optimal BBO prices. Any unfilled portion converts automatically into a limit order. Offers predictable pricing and minimizes slippage during volatile conditions.
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Leverage: Amplify Gains, Manage Risks
Leverage allows traders to control larger positions with less capital. Perpetual swaps support leverage ranging from 1x to 200x, depending on the contract.
For instance, with 10x leverage on BTC Weekly Futures, a trader needs only 1 BTC as margin to open a position worth up to 10 BTC. While this magnifies potential profits, it also increases liquidation risk.
Key Leverage Rules:
- Leverage must be set before opening a position.
- Once set, it applies uniformly across all expirations (weekly, quarterly, etc.) for that asset.
You can adjust leverage only if:
- No open limit or trigger orders exist.
- Futures are in active trading status.
- Available margin remains positive after adjustment.
- Margin ratio stays above zero.
- Changes may fail due to insufficient margin, system issues, or network delays.
Position Management and Averaging
Positions in the same contract type and direction are automatically merged into a single position. For example:
- Open 1 BTC long → then another 2 BTC long = 3 BTC long position displayed.
When closing, the Moving Average method calculates cost basis:
- All entry prices are averaged.
- Profit/loss is based on this average, not individual trades.
Example: Buy 1 BTC at $1,000 and 2 BTC at $1,500.
Average price = (1×1000 + 2×1500) / (1+2) = $1,333.33
Each account supports up to 8 position types: long/short for weekly, bi-weekly, quarterly, and bi-quarterly contracts.
Position and Order Limits
To prevent market manipulation and ensure fair trading, futures platforms enforce strict limits on positions and order sizes. Below are examples for BTC and ETH:
| Asset | Contract Type | Max Long/Short (lots) | Max Open Order (lots) | Max Close Order (lots) |
|---|---|---|---|---|
| BTC | Weekly | 300,000 | 45,000 | 90,000 |
| Bi-weekly | 300,000 | 45,000 | 90,000 | |
| Quarterly | 300,000 | 45,000 | 90,000 | |
| Bi-quarterly | 300,000 | 45,000 | 90,000 | |
| ETH | Weekly | 2,000,000 | 150,000 | 300,000 |
| Bi-weekly | 2,000,000 | 150,000 | 300,000 | |
| Quarterly | 2,000,000 | 150,000 | 300,000 | |
| Bi-quarterly | 2,000,000 | 150,000 | 300,000 |
Note: These values are subject to real-time adjustments based on market conditions.
Accounts exceeding thresholds may face risk controls such as forced order cancellations or liquidations.
Frequently Asked Questions (FAQ)
Q: Can I open a new position during daily settlement?
No. New positions cannot be opened in the last 10 minutes before settlement at 16:00 (GMT+8). Only closing existing positions is allowed.
Q: How is my profit calculated when I have multiple entries?
Profits are calculated using the moving average cost method, which averages all entry prices in a position—regardless of individual trade timing.
Q: What happens if I try to exceed position limits?
The system will block any order that exceeds set limits. Accounts with unusually large exposures may be subject to manual review or forced risk mitigation.
Q: Can I change leverage with open orders?
No. You must cancel all pending limit and trigger orders before adjusting leverage.
Q: Is Flash Close safer than a regular market order?
Yes. Flash Close uses up to 30 price levels for faster fills with predictable pricing and converts leftovers to limit orders—reducing slippage risk during volatility.
Q: Does leverage affect all contracts simultaneously?
Yes. Setting leverage for one contract type (e.g., weekly) applies the same level across all expirations for that asset unless changed under eligible conditions.
Core Keywords
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