Futures trading enables traders to capitalize on market movements and potentially generate profits by taking positions in both directions through long and short positions on futures contracts. On Phemex Futures, traders can utilize various leverage levels to manage risk or potentially enhance profits in volatile markets.
Long and Short?
In spot trading, traders can only profit when the value of an asset increases. However, futures trading allows traders to potentially profit from both upward and downward movements in asset prices by taking long or short positions on futures contracts.
When a trader takes a long position, they purchase a futures contract with the expectation that its value will increase in the future.
Conversely, if a trader anticipates that the price of the futures contract will decrease in the future, they can sell a futures contract to take a short position.
How to Trade?
1. Log in to your Phemex account and go to the USDT-M or COIN-M Futures trading page. If you don’t have funds in a contract trade account, please refer to How do I fund my Contract Trading Accounts?
2. Transfer USDT to your USDT contract account, or other coins (e.g., BTC) to your btc contract account, as a margin.
3. Choose a symbol to trade and select a preferred leverage.
4. Choose an order type and customize the order details. Click [Buy/Long] or [Sell/Short] to place your order.
What is PnL (Profit and Loss) and How to Calculate It?
PnL stands for profit and loss, and it can be either realized or unrealized. It can be used to describe the change in the value of a trader’s position. When you have open positions, your PnL is unrealized, meaning it’s still changing in response to market moves. When you close your positions, the unrealized PnL becomes realized PnL. Read here for more details about PNL.
