FTX Futures Trading – The 10 STEP Beginners Guide

By Krisha A / December 22, 2021

Note: This is not a sponsored post/series. Crypto on-boarding is important to us, so we only review exchnages we use. 

Upon doing a basic Google search on “FTX”, the first and most popular question asked is:

Q) “Is FTX legit?”
A) The short answer is, “YES, it is!". 

We've been using the FTX exchange for well over 2 years now. Primarly to trade the Spot & Futures markets. From our experience we've found that FTX's features and bugs are constantly being improved and fixed. Additionally, we've also witnessed an increase in trading volume. Which, for most traders, should be an important attribute they look for on any exchange they plan to actively trade on.

While the FTX exchange could use some UX imporovements, it doesn't fail to provide value in all other aspects. FTX has continued to improve on and deliver new features and products around the latest innovations and trends in the cryptocurrency market. 

FTX Futures Trading 10 STEP YouTube Tutorial Guide:

STEP 1: How to create your FTX Account + KYC Process?

In this video, we create an FTX acoount, and go through the FTX KYC process. While signing up for an account on FTX for an account is starightforward, it should be noted that level 1 KYC is required to use the FTX exchange to any extent.

The FTX exchange has 2 Levels of KYC:
Level 1:  Your Name, Country of Residence, DOB and Phone Number for verification
Level 2: Government Issued Photo ID (front & back), Selfie and proof of address

Completing ONLY level 1 of KYC will prevent you withdrawing more than $2000/day from the exchnage, and will also prevent you from trading on leverage. Hence, in order to unlock all features of the exchange, you MUST complete FTXs' level 2 KYC verifictaion.

STEP 2: How to Deposit and Withdraw margin into your FTX account?

STEP 3: How much do you pay in: FTX Spot Trading Fess, FTX Perpetual Futures Fees & Quarterly Futures Fees

STEP 4: What is the Difference Between FTX Perpetual Futures and FTX Quarterly Futures

(Timestamps  1:03-1:53)

STEP 5: How to margin LONG (buy) altcoins on FTX?

STEP 6: How to set a Stoploss on an FTX LONG Trade?

Premise of a LONG Trade: Taking a LONG trade on an FTX futures contract would imply that a trader has bought X amount of a cryptocurrency in anticipation for prices to go higher. So, logically, in order to:

1) "Take Profit" - a trader would SELL their position at a price GREATER THAN what they bought it for

AND to..

2)"Stop their Losses" - a trader would  SELL their position at a price LOWER THAN what they bought it for

In either case, the action being executed by the trader is a SELL action. Irrespective if the trade is executed at a profit or a loss. Hence, on a LONG futures Position, 
Your Stoploss AND Take-profit order needs to be executed on the Sell Side in the order box

Asssumption: "Limit Stoploss" orders can be used to express other trade intentions. However the explanation below is written with the assumption that a trader intends on exiting a losing trade.

FTX Setting a Stop-limit order on a LONG (Buy) Trade (Breakdown):

1) "Trigger Price" - Is the price point a trader says, "Enough is enough. I need to cut my losses". Hence, your "Trigger" Price has to be lower than your entry price. This trigger price is also known as the the "Stop price".

2) "Limit Price" - Is the price point your Sell Order gets executed at. 

3) "Amount" - The Amount is 'how much' of the asset you choose to sell

To put this into context lets use an Analogy of Archery:
The "Trigger Price" would be akin to the moment an archer releases tension from an exteded arrow, and the "Limit price" would be akin to the moment the Arrow hits the target.

The trigger price reflects your intention to Sell, the "Limit Price" is 'What price you sell at'. So when the price of an assets starts trading at (or below) your "Trigger Price", your "Limit order" will only then be placed on the orderbook.

Similar to an archer who cannot hit his/her target before they they release (trigger) their bow, your limit order will not get executed before your "Trigger price" is met.

STEP 7: How to SHORT (selling) on FTX?

Q) Not sure what Short Selling is?
Here's a beginners guide to
"What is a short sell?", and "What is a short squeeze?"

STEP 8: How to set Stop Loss on FTX SHORT SELL trade?

Asssumption: "Limit Stoploss" orders can be used to express other trade intentions. However the explanation below is written with the assumption that a trader intends on exiting a losing trade.

Premise of a SHORT Trade: Short Selling an FTX futures contract would imply that a trader has sold X amount of a cryptocurrency in anticipation for prices to go lower. So logically, in order to:

1) "Take Profit" on a Short Trade - a trader would BUY BACK their position at a price LOWER THAN what they sold it for

AND to..

2)"Stop their Losses" on a Short Trade - a trader would BUY BACK their position at a price GREATER THAN what they sold it for

In either case, the action being executed by the trader is a BUY action. Irrespective if the trade is executed at a profit or a loss. Hence, on a Short Sell Position, your Stoploss AND Take-profit order needs to be executed on the Buy Side in the order box

Asssumption: "Limit Stoploss" orders can be used to express other trade intentions. However the explanation below is written with the assumption that a trader intends on exiting a losing trade.

FTX Setting a Stop-limit order on a SHORT Sell Trade (Breakdown):

1) "Trigger Price" - Is the price point a trader says, "Enough is enough. I need to cut my losses". Hence, your "Trigger" Price will be GREATER than your entry price. 

2) "Limit Price" - Is the price point your Buy Order gets executed at.

3) "Amount" - The Amount is 'how much' of the asset you choose to Buy back.

The "Trigger Price" reflects your intention to Buy Back; the "Limit Price" is 'What price you buy at'. So when the price of an assets starts trading at (or above) your "Trigger Price", your "Limit order" will only then be placed on the orderbook.

Similar to an archer who cannot hit his/her target before they they release (trigger) their bow, your limit order will not get executed before your "Trigger price" is met.

STEP 9: Three ways to prevent Liquidation

STEP 10: How to Isolate Margin on FTX? 

About the author

Krisha A


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