Example Market Entries in the OKCoin Futures Platform
My suggestion is that you transfer no more than 0.5BTC or $100 and be willing to lose this amount in the interest of learning. Choose 10x Max Leverage and begin experimenting with the calculator and trade interface.
OKCoin futures uses “contracts”. A contract is $100 worth of BTC. As price increases, contracts cost less BTC. As price decreases contracts become more expensive to buy.
In the examples below we will experiment with placing orders of 1 contract.
Unfortunately, we only learn by making mistakes in the market and it comes with the territory that a mistake in the market costs us money. So we learn by reading, applying what we read and then losing money – that’s the only way!
Hence my suggestion of using small amounts. Better to sacrifice small amounts than your entire account, right?
Choose the 2-week contract (center panel) for this example.
1) choose “Limit Order” from the drop-down Order Type
2) In the Amount entry field, type “1” (contract, of course)
Force an “at market” entry:
3) If the current 2-week contract price is, say, $290 type an amount of a few dollars higher in the “Price” field, e.g. “292”
4) watch the orderbook on the right of the page and when there is a nearby Ask order (red) greater than 1 contract, click “Open Long”
5) the platform will flash a message “Order placed!” and you will notice 1 contract being consumed from the Ask order immediately above price as your order gets executed or “filled”. The market price will move to the level of that order.
Place an actual “limit” order:
3) If the current 2-week contract price is, say, $290 type an amount of a few cents lower in the Price field, e.g. “289.80”
4) the platform will flash a message “Order placed!” and you will notice your order appear among the green Bid orders – at your stated price level of $289.90. It will also show under the tab “Open Orders” at the bottom of the page.
5) If price is sold down and another trader “sells” your order, your order will be “filled” and appear under “Open Positions” at the bottom of the page.
That’s a start. Experiment with long and short orders – you can hold as many as you want, both long and short, in different futures contracts. But try to learn by placing one order and trading it to its conclusion. Close losing orders when you feel a sense of “hope” and take profit on winners when you start feeling euphoric.
For an explanation of the other Order Types, see the following link (not sure why OKCoin does not make this available from the Futures platform):