Beginner’s Guide to Futures Trading – Help Center

Content of this article:

How to Calculate Unrealized PnL and Return on Investment (ROI)?

What is Futures Trading?

Futures trading allows traders to participate in market movements and profit by going long or short on futures. On XTrust Futures, you can also use different leverage levels to reduce risks or amplify potential returns in a volatile market.

What is Long/Short Futures Trading?

In spot trading, traders can only profit when the value of an asset increases. However, futures trading allows traders to profit in both directions (when the asset value rises or falls) by going long or short on futures.
Going long refers to purchasing a future when the trader expects its value to rise in the future.
On the other hand, if a trader expects the future price to drop, they can sell a future to go short.

For example, if you expect the price of BTC to rise, you can buy a BTCUSDT futures contract to go long.

Contract Size	Entry Price	Exit Price	PnL
1 BTC	5,000 USD	5,500 USD	500 USD

If you expect the price of BTC to fall, you can sell a BTCUSDT futures contract to go short.

Contract Size	Entry Price	Exit Price	PnL
1 BTC	5,000 USD	4,500 USD	500 USD

How to Trade Futures on XTrust?

Log in to your XTrust account and go to the USDT-Margined or Coin-Margined Futures trading interface.
Transfer USDT or USDC to your futures account, or transfer other tokens (e.g., BTC) to your futures account as margin.
Choose the trading pair and select your preferred leverage.
Choose the order type and customize your order details. Click [Buy/Long] or [Sell/Short] to place your order.

How to Calculate Unrealized PnL and Return on Investment (ROI)?

Order Direction:
1 represents a long order
-1 represents a short order