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How to Complete Your First Futures Trade on BitTap

BitTap
Updated

Summary

  • This guide aims to assist new users in completing their first futures trade, using BitTap USDT-margined futures as an example.
  • Before trading, please understand the futures trading process and risks involved.
  • BitTap recommends beginners use a small amount for their first futures trade to familiarize themselves with operations and product features.

Understanding the Difference Between Futures and Spot Trading

Futures trading is a derivative trading method that uses leverage to amplify potential profits, but it also increases potential losses. This makes it fundamentally different from spot trading, so users should fully understand how it works before participating.

Step 1: Transfer Funds to the Futures Account

After the initial deposit, funds will be stored in the spot account.
To trade futures, you need to transfer funds from the spot account to the futures account.
BitTap offers multiple accounts for risk management, including funds, spot, and futures accounts.

Mobile App

  1. Open the BitTap app, tap “Assets” in the bottom right, and select “Transfer”.
  2. Select USDT-margined futures, and transfer funds from the Spot Account to the Futures Account.
  3. Enter the transfer amount, select the cryptocurrency (e.g., USDT), and tap “Confirm Transfer”.

Web Platform

  1. Log in to BitTap Web, click “Account” in the upper right, and select “Transfer”.
  2. Choose the Futures Type and Currency, then transfer funds to the Futures Account.

Step 2: Start Futures Trading

Mobile App

  1. Select a Trading Pair:
    • On the futures trading page, BTC/USDT is displayed by default.
    • Tap the upper left corner to select other pairs (e.g., ETH/USDT).
  2. Choose Margin Mode:
    • Cross Margin: Uses all funds in the account as margin for all positions.
    • Isolated Margin: Sets margin individually for each position, reducing risk.
  3. Set Leverage:
    • Select leverage (for both cross and isolated modes).
    • BitTap offers leverage from 1x to 200x.
    • Beginners are advised to start with lower leverage (e.g., 10x or less) to avoid excessive losses due to market fluctuations.
  4. Select Order Type:
    • Limit Order: Sets a specific price; the order is executed only when the market reaches that price.
    • Market Order: Executes immediately at the current market price.
    • Trigger Order: Executes automatically when the price reaches the trigger condition.
  5. Set Take-Profit and Stop-Loss:
    • To manage risk, set take-profit and stop-loss prices.
  6. Execute Trade:
    • Choose Buy (Long) or Sell (Short), then tap Confirm.

Web Platform

  • The process on the web is similar to the mobile app.
  • The web version is suitable for users who need to view technical analysis tools, such as candlestick charts.

Step 3: Key Elements of Futures Trading

1. Funding Rate

  • BitTap’s perpetual contracts settle funding rates every 8 hours.
  • Traders pay or receive funding fees to keep contract prices aligned with the spot market.

2. Margin

  • Futures trading uses a margin system, allowing users to trade by paying only a fraction of the contract’s value.
  • Initial margin is determined based on the selected leverage.

3. Trading Fees

  • BitTap charges fees based on order type.
  • Maker and taker fees differ, with maker orders typically having lower fees.