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Bitcoin (BTC) futures trading guide

Our crash course on Bitcoin futures will help you quickly get started with Bitcoin futures trading and understand both the risks and risk management measures involved in futures trading.
Trade Bitcoin (BTC) futures to capitalize on Bitcoin market movements without the need to buy and hold BTC in your portfolio.
Bitget is a world-leading cryptocurrency futures trading platform, with a 24-hour trading volume of 30,697,231,414 USD, open interest of 17,571,765,556 USD, and support for 350+ trading pairs. We provide ample liquidity and fast order matching to ensure an exceptional user experience. Bitget Futures is your top choice for futures trading.
Create a Bitget account to start trading BTC futures instantly. You can go long or short on BTC to capitalize on BTC's market movements, whether prices are rising or falling. Keep in mind that futures trading involves high risks, so be sure to implement effective risk management measures.
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What are Bitcoin futures?

Bitcoin futures contracts are financial instruments that allow traders to buy or sell BTC at an agreed price in the future, offering a way to invest in Bitcoin without holding BTC directly. There are two types of futures: perpetual futures, which have no expiry date, and delivery futures, which settle on a specified date.
Benefits of Bitcoin futures include: 1) Leverage trading – Investors can open larger positions with a smaller amount of capital, amplifying potential returns. 2) Risk management – When BTC prices drop, investors can short futures to hedge against losses in BTC spot prices, protecting their investments. 3) High flexibility – Bitget Futures supports a variety of trading strategies to adapt to different market conditions. 4) 24/7 trading – The market operates around the clock, allowing investors to trade anytime.

How do Bitcoin futures work?

Bitcoin futures offer traders greater flexibility in the market. Bitcoin futures serve as an effective tool to withstand market volatility and adverse price movements. As a derivative, it reflects traders' predictions about future price movements of Bitcoin.
When you expect the price of Bitcoin to rise, you can go long to maximize profit. Conversely, if you anticipate the price of Bitcoin to fall, you can go short to hedge against potential losses in spot assets due to the decline.
Over the longer term, Bitcoin may experience bear markets or sentiment shifts that can negatively impact your portfolio's returns. In such cases, Bitcoin futures can help protect your investments, mitigate risks from price drops, and support better portfolio management.
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What types of futures trading does Bitget support?

Bitget offers four futures trading types:
1. USDT-M Futures:
USDT-M Futures are settled in the stablecoin USDT. Examples include BTCUSDT and ETHUSDT (note that the quote currency on the right is the stablecoin USDT).
2. USDC-M Futures:
USDC-M Futures are settled in the stablecoin USDC. Examples include BTCUSDC and ETHUSDC (note that the quote currency on the right is the stablecoin USDC).
3. Coin-M perpetual futures:
Coin-M perpetual futures are settled in cryptocurrency. Examples include BTCUSD and ETHUSD. Perpetual futures can be held indefinitely without an expiration date.
4. Coin-M delivery futures:
Coin-M delivery futures are settled in cryptocurrency, but with an expiration date. This means that users are required to deliver a specified amount of the asset on a predetermined future date. On the delivery date, the futures contract holder must fulfill the obligations outlined in the contract.
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You can trade BTC futures and more on Bitget

Bitcoin_0
BTCUSDT Perpetual
Trading volume (USDT): 8.46B
98,420.1-0.03%
Trade now
Bitcoin_1
BTCUSD Perpetual
Trading volume (USD): 679.67M
98,520.8-0.08%
Trade now
Bitcoin_2
BTCUSDC Perpetual
Trading volume (USD): 51.39M
98,520.9-0.09%
Trade now
Bitcoin_3
BTCUSD Delivery
Trading volume (USD): 1.12M
99,984.6-0.05%
Trade now
Ethereum_4
ETHUSDT Perpetual
Trading volume (USDT): 8.69B
3,425.01-1.10%
Trade now
Ethereum_5
ETHUSD Perpetual
Trading volume (USD): 401.50M
3,429.28-1.17%
Trade now
View more >

Why should I trade BTC futures? What are the benefits of futures trading?

A BTC futures is an agreement between a buyer and a seller to trade a specified BTC quantity at a set BTC price on a predetermined future date and time. This allows traders to profit from BTC without actually holding it.
Individuals and organizations holding BTC can use futures to hedge market volatility, offering better protection for their investments.

What are the advantages of Bitget Futures?

Bitget is a world-leading cryptocurrency trading platform. Bitget Futures offers four key advantages:
Top-level security: Bitget Futures provides exceptional security for complete peace of mind, integrating Proof of Reserves, a protection fund, and third-party fund custody to protect users' investments and assets. This makes Bitget a highly trustworthy choice.
Ultimate trading experience: Bitget offers a seamless futures trading experience, with abundant liquidity for both perpetual and delivery futures, making each transaction effortless and worry-free.
Efficient matching engine: Bitget's high-efficiency order matching engine ensures fast and smooth trading, standing out as a top choice in the industry for its leading technical capabilities.
24/7 customer support: Bitget's support team is available around the clock, providing responsive, professional assistance to promptly resolve any issues and ensure an outstanding user experience.
In summary, Bitget leads the way in futures trading innovation by continuously enhancing and optimizing platform features. With a wide range of trading products, Bitget is dedicated to creating a secure and efficient trading environment that fully meets the needs of all types of investors.

How do I make BTC futures trades?

1. Transfer funds to your futures account.

2. Select your preferred BTC futures trading pair, choose your margin mode, set the leverage, and select an order type.

3. Set your take-profit and stop-loss targets, then select "Buy long" or "Sell short."

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How to trade futures on the go?

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1. Create a free Bitget account

2. Buy or deposit cryptocurrency

3. Select a futures trading pair and type, set the trading parameters, and start trading

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What are the risks in futures trading?

The high leverage and potential returns in futures margin trading come with significant risks, particularly for new investors. The unknown risks may be daunting, making it difficult for beginners to accurately grasp market conditions. These risks arise from the inherent uncertainties of futures trading, which can lead to the loss of the investor's principal. It is essential for beginners to fully understand these risks and only engage in trade when they are confident in their ability to bear potential losses.
Major risks in futures trading:
Price volatility: The high volatility of futures prices can make it challenging for investors to accurately grasp market trends and may lead to undesired investment outcomes.
Potential liquidation: If the market moves against your position, you may face significant losses. To avoid liquidation, investors must either increase their margin or reduce their positions, or they will incur losses.
Trading performance: Once an order is filled, it cannot be reversed. Investors should understand the risks involved before starting futures trading. Additionally, the exchange does not guarantee profits for investors, nor does it share the profits and risks with investors.
Policies and regulations: Cryptocurrency futures trading may be subject to regional regulatory changes. Investors should understand the policy environment of the regions they are trading in and make prudent decisions.
Force majeure: If natural disasters (e.g., earthquakes, floods, or fires) or technical issues (such as computer or communication system failures) prevent orders from being fully executed, investors are responsible for any resulting losses.
Additional risks of high leverage:
High leverage in futures trading can significantly amplify both profits and losses. Trading platforms closely monitor high-leverage positions and may intervene if these positions pose risks to market stability. For instance, Bitget actively monitors positions with excessively high leverage to maintain a stable market environment. If an investor's position is deemed to threaten market stability, Bitget will take appropriate actions, including but not limited to communicating with the investor, providing risk disclosures, partially or fully liquidating the position, and canceling orders, with a written explanation provided to the investor. These measures help protect other investors and are essential for maintaining a stable and secure trading environment.
These are some of the key risks associated with futures trading. For beginners, it's essential to carefully evaluate these risks and allocate funds wisely. Only with a full understanding of the risks can investors engage in futures trading safely and protect their investments.
Note: Trading futures, derivatives, and other instruments with leverage involves certain risks and may not be suitable for everyone.

Risk management in futures trading

Risk management is essential for futures traders to protect their capital and reduce potential losses. Here are some effective risk management strategies:
Effective risk management strategies that futures traders can implement:
Control leverage: Choose leverage carefully based on your risk tolerance. While higher leverage can amplify returns, it also increases potential losses. Beginners are strongly advised to start with lower leverage.
Maintain sufficient margin: Ensure your account has adequate margin to avoid liquidation caused by market volatility. Monitor your account balance closely and add margin as needed to sustain your positions.
Set TP/SL targets: Establish stop-loss and take-profit targets for each trade to automatically close positions, locking in profits and limiting losses. This approach helps avoid emotional decision-making that could impact trade outcomes.
Diversify your portfolio: Avoid placing all your funds in a single futures contract. Spread your investment across different trading pairs and markets to lower overall risk.
Regularly access market conditions: Stay informed about market trends and relevant news, and use both technical and fundamental analysis to adjust your trading strategies promptly in response to market changes.
Adopt appropriate trading strategies: Use proven trading strategies such as trend trading, arbitrage, or day trading to increase your success rate. Identify your trading style and plan accordingly.
Stay calm: Manage your emotions and avoid making impulsive decisions driven by fear or greed. Stick to your plan and avoid following market trends blindly.
Keep learning: Continuously improve your knowledge of futures trading, including market analysis, technical analysis, and fundamental analysis. Ongoing learning helps improve the quality of your trading decisions.
Bitget also provides essential risk management measures for investors:
Asset protection: Bitget implements multiple security measures, including Proof of Reserves, Protection Fund, and third-party fund custody, to ensure the security of user assets.
Risk warning system: The platform monitors margin positions and issues a risk warning if leverage for a position is too high, reminding users to adjust their positions promptly.
Liquidation mechanism: To maintain market stability and prevent further losses, Bitget will automatically liquidate positions if a user's margin falls below the maintenance margin level.
Education and support: Bitget offers a wealth of educational resources, including information on trading strategies, risk management, and market analysis, to help users improve their trading skills and risk awareness.
24/7 customer support: Bitget's customer service is available around the clock to answer questions and address concerns, assisting users in managing risks more effectively in futures trading.
Effective risk management is essential for success in futures trading. We encourage users to make full use of the risk management tools provided by Bitget to trade safely and efficiently. Remember to stay rational and cautious, employ diverse trading strategies, remain vigilant, and adjust your approach as needed to protect your funds in this complex and volatile market.
Learn more about risk management>

What are the differences between Bitcoin futures and Bitcoin futures ETFs?

While Bitcoin futures and Bitcoin futures ETFs are both related to Bitcoin, Bitcoin futures and Bitcoin futures ETFs are two distinct investment vehicles.
Bitcoin futures: Futures trading is a financial instrument that allows investors to buy or sell Bitcoin at an agreed price at a specified time in the future. There are two types of futures: perpetual and delivery futures. Investors can trade with leverage.
Bitcoin futures ETF: A futures ETF (exchange-traded fund) is an investment fund that tracks the performance of Bitcoin futures contracts. Investors buy shares of the ETF to invest indirectly in Bitcoin, instead of purchasing Bitcoin or its futures contracts directly.
Trading method
Bitcoin futures: Traders who trade futures on cryptocurrency exchanges like Bitget can choose to go long or short and use leverage to amplify potential gains (while also increasing potential losses).
Bitcoin futures ETF: Futures ETFs are listed and traded on stock exchanges, allowing investors to buy and sell ETF shares through a brokerage account. The ETF's price fluctuates with the market performance of the underlying futures.
Investment risk
Bitcoin futures: Due to the use of leverage, futures trading involves high risks, and investors may face significant losses in a short period. It is strongly recommended to closely monitor the market to prevent liquidation.
Bitcoin futures ETF: Although futures ETFs are also affected by market volatility, they do not involve leverage and therefore carry relatively lower risk. Investors do not need to manage the actual futures contract and only need to monitor the ETF's price movements.
Asset holding
Bitcoin futures: Investors do not actually hold Bitcoin directly but gain exposure by investing through futures contracts.
Bitcoin futures ETF: Investors purchase shares in the ETF, and the fund manager uses these funds to invest in Bitcoin futures contracts, thereby indirectly holding the value of Bitcoin.
Fee structure
Bitcoin futures: Futures trading may be subject to transaction fees, margin interest, and platform fees.
Bitcoin futures ETFs: ETFs typically charge management fees. Investors should consider the fund's fee structure, as it can affect overall returns.
Regulatory environment
Bitcoin futures: Futures trading is less regulated and relies primarily on the oversight of trading platforms.
Bitcoin futures ETFs: Crypto ETFs are generally subject to stricter regulations as they are listed on traditional financial markets and must comply with securities regulations.
Bitcoin futures contracts are suitable for traders with a high risk tolerance seeking higher returns, while Bitcoin futures ETFs are better suited for more risk-averse investors who prefer indirect exposure to Bitcoin. Understanding this difference helps investors make more informed investment decisions.

What are the differences between Bitcoin futures and Bitcoin ETFs?

Bitcoin futures and Bitcoin ETFs are two Bitcoin-related investment vehicles that differ significantly in structure, trading methods, and risk management. Below are the main differences between them, along with some of the Bitcoin ETFs currently available on the market.
Key differences between Bitcoin futures and Bitcoin ETFs
1. Definition
Bitcoin futures: Futures trading is a financial derivative that allows investors to buy or sell Bitcoin at an agreed price at a specified time in the future. There are two types of futures: perpetual and delivery futures. Investors can trade with leverage to amplify their gains (while also increasing the potential losses).
Bitcoin ETF: Bitcoin ETFs (exchange-traded funds) are investment funds that track the performance of Bitcoin. Investors are buying shares of the ETFs to invest indirectly in Bitcoin, instead of actually holding Bitcoin.
2. Trading method
Bitcoin futures: Traders who trade futures on cryptocurrency exchanges like Bitget can choose to go long or short and use leverage to amplify potential gains (while also increasing potential losses).
Bitcoin ETF: ETFs are listed and traded on stock exchanges, allowing investors to buy and sell ETF shares through a brokerage account. The ETF's price fluctuates with the market performance of the Bitcoin.
3. Investment risk
Bitcoin futures: Due to the use of leverage, futures trading involves high risks, and investors may face significant losses in a short period. It is strongly recommended to closely monitor the market to prevent liquidation.
Bitcoin ETF: The risk is relatively low, as investors aren't exposed to leverage. Although the value of Bitcoin fluctuates with the ETF price, investors don't need to manage futures contracts directly.
4. Asset holding
Bitcoin futures: Investors do not actually hold Bitcoin directly but gain exposure by investing through futures contracts.
Bitcoin ETF: Investors purchase shares in the ETF, and the fund manager uses these funds to invest in Bitcoin, thereby indirectly holding the value of Bitcoin.
5. Fee structure
Bitcoin futures: Futures trading may be subject to transaction fees, margin interest, and platform fees.
Bitcoin ETF: ETFs typically charge management fees. Investors should consider the fund's fee structure, as it can affect overall returns.
6. Regulatory environment
Bitcoin futures: Futures trading may be subject to transaction fees, margin interest, and platform fees.
Bitcoin ETF: ETFs are generally subject to stricter regulations as they are listed on traditional financial markets and must comply with securities regulations.
Bitcoin futures and Bitcoin ETFs each have their own pros and cons. Investors should choose the instrument that best aligns with their risk tolerance and investment objectives. As the market grows, more Bitcoin ETFs will become available, offering investors a wider range of options.
Well-known Bitcoin ETFs in the market:
ProShares Bitcoin Strategy ETF (BITO)This is the first Bitcoin futures ETF listed in the United States, primarily investing in Bitcoin futures contracts.
Valkyrie Bitcoin Strategy ETF (BTF)Another Bitcoin futures ETF that tracks the performance of Bitcoin futures contracts.
VanEck Bitcoin Strategy ETF (XBTF)This ETF also focuses on Bitcoin futures contracts, aiming to provide investors with an opportunity to invest in Bitcoin.
Grayscale Bitcoin Trust (GBTC)Although not a traditional ETF, GBTC is a popular investment tool that allows investors to gain Bitcoin exposure through the stock market.
Purpose Bitcoin ETF (BTCC)Canada's first Bitcoin ETF that holds Bitcoin assets, offering investors direct exposure to Bitcoin.
Evolve Bitcoin ETF (EBIT)Another Canadian-listed Bitcoin ETF, offering investors direct exposure to Bitcoin.
The launch of Bitcoin ETFs marks a gradual acceptance of cryptocurrencies in traditional financial markets, allowing more investors to access Bitcoin through familiar financial tools. The rising number of Bitcoin ETFs highlights the maturity of the cryptocurrency market and its integration with traditional finance. As the regulatory landscape becomes clearer and investor demand continues to grow, we can expect more Bitcoin ETFs to emerge—especially with significant progress in spot ETFs.
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Futures trading carries high risks, and investors may experience partial or total loss of funds. Investors should make informed decisions and thoroughly understand these risks. Futures prices are highly sensitive to market fluctuations, with rapid and significant price changes, requiring investors to develop strong risk management skills. All information, data, and content on this website are provided for reference only and should not be considered trading guidance or recommendations. Investors should conduct their own research and seek professional advice. Futures trading is subject to applicable laws and regulations, and investors should ensure they understand local laws before trading. Bitget is not liable for any direct or indirect losses resulting from futures trading. Investors are solely responsible for their trading decisions.