What Is KuCoin Futures?

KuCoin Futures is a sophisticated cryptocurrency trading tool offered by the KuCoin cryptocurrency exchange.

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Futures contracts are a sort of derivative product that allows two users to contract for the purchase and sale of a digital asset at a preset price and date. They provide traders with a number of distinct benefits. Traders can take positions that are substantially higher than their current holdings, trade both up and down market movements, and de-risk their existing bitcoin positions.

Trading futures contracts, unlike trading on spot markets, allows users to trade both long and short positions. Short selling is more easier because there is no direct acquisition of an underlying asset.

Traders can also use leverage to raise the size of their positions. Trading on margin is a more formal term for this. It gives traders the chance to earn more money, but it also puts them at risk of losing more money.

Three futures platforms are hosted by KuCoin. Futures Lite, Futures Pro, and Futures Brawl are the three games. Four types of futures contracts are available across the three KuCoin Futures platforms: inverse, linear, perpetual, and delivery contracts.

What are cryptocurrency futures?

A derivative trading product is a futures contract. These are regulated trading contracts in which two parties agree to buy or sell an underlying asset at a certain price on a specific date. The underlying asset in the case of bitcoin futures would be bitcoin.

What are the KuCoin futures fees?

KuCoin has a tiered maker/taker fee structure, with costs ranging from 0.0125 percent to 0.1 percent depending on your tier level. In comparison to competitors, which may charge up to 0.50 percent every trade, its fees are relatively inexpensive. Users can also save money on trading fees by using their KuCoin Token (KCS) balance.

KuCoin charges withdrawal fees in addition to trading fees, which vary by asset and are subject to change based on market performance. Deposits are free on this exchange, although it’s worth noting that KuCoin now only accepts a restricted number of fiat deposits.

In trade, what are futures?

Futures are a sort of derivative contract in which the buyer and seller agree to buy or sell a specified commodity asset or security at a predetermined price at a future date. Futures contracts, or simply “futures,” are traded on futures exchanges such as the CME Group and require a futures-approved brokerage account.

A futures contract, like an options contract, involves both a buyer and a seller. When a futures contract expires, the buyer is bound to acquire and receive the underlying asset, and the seller of the futures contract is obligated to provide and deliver the underlying item, unlike options, which can become worthless upon expiration.

What is the purpose of futures contracts?

A futures contract is a legally enforceable agreement to acquire or sell a standardized asset at a defined price at a future date. Futures contracts are exchanged electronically on exchanges like the CME Group, which is the world’s largest futures exchange.

Is KuCoin subject to IRS reporting?

However, you can calculate your crypto taxes manually or with crypto tax software using your KuCoin transaction history.

Using the KuCoin tax report API, you may accomplish this in minutes. This API downloads your KuCoin transaction data and imports it into the crypto tax app of your choice. The API is read-only, so you don’t have to worry about another app getting access to your KuCoin account.

If you want, you can obtain your KuCoin transaction history files in CSV format by following the procedures above.

KuCoin or Binance: which is better?

We separated our detailed fact-based analysis results into 8 different categories to portray the statistics of the Binance vs Kucoin comparison as accurately as possible. Take a look at the general overview table below for a quick comparison of Binance and Kucoin’s primary metrics.

When comparing the overall scores of Binance and Kucoin cryptocurrency exchanges, Binance has a higher overall score of 9.8, while Kucoin has a score of 9.4. When it comes to ease of use, it’s evident that Binance has a better and smoother user experience than Kucoin in this Binance vs Kucoin comparison.

What are some examples of futures?

Corn growers, for example, can utilize futures to lock in a price for selling their harvest. They limit their risk and ensure that they will obtain the agreed-upon price. If the price of corn fell, the farmer would profit from the hedge, which would compensate for losses from selling corn at the market. Hedging efficiently locks in an appropriate market price with such a gain and loss offsetting each other.

Are futures preferable to stocks?

While futures trading has its own set of hazards, there are some advantages to trading futures over stock trading. Greater leverage, reduced trading expenses, and longer trading hours are among the benefits.

Is it safe to trade futures?

They are riskier than guaranteed fixed-income investments, much like equity investments. However, many people believe that trading futures is riskier than trading stocks because of the leverage inherent in futures trading.