Equip your mind with knowledge to better profit in the futures market! Learn the basics of futures trading now!

A

API: An abbreviation for Application Programming Interface, a software intermediary that allows two programs (like KuCoin and trading bots) to talk to each other.

Auto Deleverage: Auto deleverage is a mechanism to cover losses caused by negative balance. It comes into play when the insurance fund can't fully cover such losses, ensuring the platform continues to operate.

Auto Deposit Margin: You can choose to enable "Auto Deposit Margin" in the order leverage and position list. Once "Auto Deposit Margin" mode is activated, if your position nears forced liquidation, the system will automatically withdraw the required margin amount from your available balance and add it to restore your position value to its original level at the time of opening, thus avoiding forced liquidation.

Average Entry Price: The average price of a position after multiple trades.

Average Entry Value: Average Entry Value = Position value calculated based on the average entry price, unaffected by the mark price.

For USDT-margined futures, Position Value = Position Amount x Futures Multiplier x Average Entry Price.

For coin-margined futures, Position Value = Position Amount x Futures Multiplier / Average Entry Price.

For reference to the calculation, see Information on USDT-Margined Futures Positions.

B

BTCUSD: BTC coin-margined futures.

BTCUSDT: BTC USDT-margined futures.

Buy Long: Open a bullish position, profiting when futures prices rise.

C

Coin-Margined Futures: Use coins, such as BTC/ETH/XRP, as the base currency. Users confirm the futures amount traded in USD (quote currency) and calculate margin and profit/loss in their base currency (such as BTC, ETH).

F

Forced Liquidation: When a position's margin fails to meet the maintenance margin requirement, the position is forcibly liquidated, losing the maintenance margin.

Funding Fee =  Position Value × Funding Rate. The position value is determined by the mark price at the time of funding rate settlement.

Funding Rate: Perpetual contracts do not require delivery at expiration, so the Funding Fee Mechanism is used to peg contract prices to spot prices. Perpetual contracts are settled every 8 hours, at 04:00, 12:00, and 20:00 (UTC), respectively. The exact times at which funding fee payments are collected may vary by up to 20 seconds. Only users holding a position at the time of settlement need to pay or receive funding fees. If the position is closed before settlement, there is no need to pay or collect funding fees.

G

GTC: An Good-Till-Canceled order execution strategy. The order remains valid until it is fully executed or manually canceled.

H

Hidden Order: When investors make large transactions, they split the order into several small limit orders to hide the real amount.

I

Index Price:The index price is derived from the aggregate prices provided by several spot platforms, multiplied by their respective weights. For more details, see USDT-Margined Futures Index Price.

Initial Margin Rate = 1/Leverage.

Initial Margin: The margin required for futures opening. Initial Margin = |Position Value| x Initial Margin Rate.

Insurance Fund: A fund pool used to compensate for losses caused by negative balance, reducing the likelihood of auto deleverage on KuCoin.

IOC: An Immediate-Or-Cancel order execution strategy. The order must be immediately executed at a limit price or better. If the order cannot be executed immediately, the unfulfilled portion will be canceled.

L

Leverage Multiplier: There are two types of leverage multiplier - initial leverage multiplier and actual leverage multiplier. The initial leverage multiplier is the leverage set manually by the user at the time of opening a position. The actual leverage multiplier is the leverage that varies after opening the position based on the changes in unrealized profits and losses (PNL).

Limit on Close:A limit-on-close order with a trigger for closing.

Limit Order: A limit order is placed at a specific limit price in the order book. You decide the limit price. Trades only occur when the market price reaches the limit price (or higher). Conditional limit orders are not guaranteed to execute, depending entirely on market conditions at the time.

Liquidation Price: The mark price when the margin rate equals the maintenance margin rate. For more details, see How to Calculate Futures Liquidation Price.

M

Mark Price: Futures trading typically use the latest fill price to mark positions (for instance, pricing based on market value). If the market experiences malicious manipulation or lacks liquidity, causing fluctuations in the latest transaction price, this can trigger liquidation. For more details, see Mark Price for USDT-Margined Futures.

Margin: In futures trading, you need to use margin to open or maintain positions. The minimum amount required for opening a position is called Initial Margin, while the margin needed to maintain positions is Maintenance Margin.

Maintenance Margin Rate: It is related to the risk limit level of the position. If your position's margin rate drops below the maintenance margin rate, it will trigger either a forced reduction of your position or liquidation. For more details, see Risk Limit Levels.

Maintenance Margin: The minimum amount of margin required for a user to continue holding a position. Maintenance Margin = Position Notional Value × Maintenance Margin Rate.

Market on Close: A market-on-close order with a trigger for closing.

Market Order: The system places orders at the most likely price to be executed. If the order is not filled or only partially filled, the system will continue to place orders at the latest price that is easier to execute.

P

Position Amount: The number of futures held, with long positions in positive numbers and short positions in negative numbers.

Position Notional Value: The market value of the futures, fluctuating with the mark price.

For USDT-margined futures, Notional Value = Position Amount x Futures Multiplier x Latest Mark Price.

For coin-margined futures, Notional Value = Position Amount x Futures Multiplier / Latest Mark Price.

Post Only: The order will not be executed immediately in the market. Instead, it will enter the order book, ensuring the order is posted to the order book and sits on the order book to be charged maker fees if it is filled. If a matching counterparty order appears in the order book, the order will be automatically canceled by the system.

R

Realized PNL: The profit and loss generated when a user partially closes or reduces a position, including trading profit/loss, trading fees, and funding fees.

Reduce Only: This ensures that after the order is executed, it will only decrease the futures position and does not require freezing margin. If executing the order would increase the position, the system will automatically reduce the order amount or cancel the order.

Risk Limit Levels: A risk management mechanism used by KuCoin Futures for all trading accounts. As position value increases, maximum leverage decreases, and maintenance margin rate and initial margin rate step up. This helps mitigate the market impact of large position liquidations, reducing additional risks for other users.

ROE: Return on Equity = Unrealized PNL / Initial Margin.

S

Sell Short: Open a bearish position, profiting when futures prices fall.

Stop Order: A stop-loss or take-profit order. The order will be triggered when the market price reaches a specified trigger price, entering the market as a limit order or market order.

T

Take Profit/Stop Loss for Long Positions: Orders that limit the profit and loss of the current position when buying/going long.

Take Profit/Stop Loss for Short Positions: Orders that limit the profit and loss of the current position when selling/going short.

Trading Fee = Order Value × Trading Fee Rate. For specific trading fee rates, see: KuCoin Futures Trading Fee Details.

Trial Fund: Users can use trial fund for futures trading and it support withdrawals.

U

UID:A unique ID number for a user account.

Unrealized PNL: The position PNL estimated based on the current mark price, excluding transaction fees and funding fees.

 

Start Your Futures Trading Now!

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KuCoin Futures Guide:

Website Version Tutorial

App Version Tutorial

Thank you for your support!

KuCoin Futures Team

 

Note: Users from restricted countries and regions cannot open futures trading.

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