The shift to Crypto
A Guide into crypto for Forex, Futures, and Stock Traders
Get Started TodayWhy Crypto?
Crypto is more than just another asset class. It's a 24/7 market that never sleeps, offering traders unmatched access and opportunity. With volatility comes risk, but also reward; the kind of dynamic movement professional traders look for every day.
Unlike stocks that close at 4 PM or forex that slows on weekends, crypto offers nonstop price action and unmatched liquidity. For traders from traditional markets, it's the natural next step to sharpen your skills and grow your edge.
24/7 Markets
Never closes, always moving
High Volatility
Dynamic moves every session
Deep Liquidity
Tight spreads, fast execution
No Close Time
Trade on your schedule
What Are Crypto Perpetual Futures?
Crypto futures are contracts that allow traders to speculate on the price of a cryptocurrency without owning it directly. Instead of buying or selling the coin itself, you enter into an agreement to exchange it at a future price.
Why Futures Matter
Leverage
Control larger positions with less capital.
Liquidity
High volumes and tight spreads make execution fast.
Two-Way Profits
Trade long or short, profit in up or down markets.
Hedging
Protect your portfolio or exposure with structured risk.
Crypto Vs. Traditional Markets
| Feature | Crypto | Forex | Futures (Traditional) | Stocks |
|---|---|---|---|---|
| Market | Decentralized | Centralized | Centralized | Centralized |
| Trading Hours | 24/7 | 24/5 | Varies by exchange | Varies by exchange |
| Volatility | High | Moderate | Moderate | Generally lower |
| Leverage | High | High | Moderate | Varies by broker |
| Liquidity | Varies by exchange | High | High | Varies by stock |
| Settlement | Cryptocurrency | Physical delivery | Cash or physical delivery | Cash |
Crypto Terminology
| Term | Crypto | Forex | Futures (Traditional) |
|---|---|---|---|
| Margin | Collateral to maintain open positions | Initial deposit to open a position | Good faith deposit to open a position |
| Funding Rate | Used to adjust the price of perpetual contracts | N/A | N/A |
| Liquidation | Occurs when margin level falls below a certain threshold | Occurs when account balance falls below margin requirement | Occurs when margin level falls below a certain threshold |
| Settlement | Cryptocurrency or stablecoin transfers | Physical delivery of currency | Cash or physical delivery |
Mastering Crypto Futures Orders
To effectively navigate the crypto futures market, it's crucial to understand the various order types at your disposal.
Market Orders
Market orders are executed immediately at the best available price in the market. They guarantee execution but not price.
Limit Orders
Limit orders allow you to specify the exact price at which you want to buy or sell. The order will only execute at your specified price or better.
Stop Orders
Stop orders are triggered when the market reaches a specified price level. Once triggered, they become market orders and execute at the best available price.
Stop-Limit Orders
Stop-limit orders combine features of both stop and limit orders. When the stop price is reached, a limit order is activated at the specified limit price.
Trailing Stop Orders
Trailing stop orders adjust automatically as the market price moves in your favor. They maintain a fixed distance or percentage from the market price.
Understanding Contract Specifications
Contract specifications define the standardized terms and conditions of futures contracts. Understanding these specifications is essential for effective trading.
Contract Size
Contract size refers to the amount of the underlying asset represented by a single futures contract. In crypto futures, this can vary significantly between exchanges and contract types.
Example: A Bitcoin futures contract might have a size of 1 BTC, 0.1 BTC, or even $1 USD of Bitcoin (in the case of quanto contracts).
Expiration Dates
Traditional futures contracts have specific expiration dates when the contract must be settled. However, crypto futures often include perpetual contracts that don't expire.
Tick Size and Value
Tick size is the minimum price movement of a futures contract. Tick value is the monetary value of a one-tick move.
Example: If a Bitcoin futures contract has a tick size of $0.50 and a contract size of 1 BTC, then a one-tick move represents a $0.50 change in value per contract.
Key Concepts For Crypto Futures Traders
Understanding these fundamental concepts is crucial for successful crypto futures trading.
Leverage and Margin
Leverage allows traders to control larger positions with a relatively small amount of capital. Margin is the collateral required to open and maintain leveraged positions.
Risk Warning: Higher leverage increases both potential profits and losses
Funding Rates
Funding rates are periodic payments exchanged between long and short traders in perpetual futures contracts. They help keep the perpetual contract price aligned with the spot price.
Liquidation
Liquidation occurs when a trader's margin balance falls below the maintenance margin requirement. The exchange automatically closes the position to prevent further losses.
Important: Always use stop-loss orders and proper position sizing to avoid liquidation
Does CoinProp Offer Forex or Futures Trading?
At CoinProp, we're focused on crypto trading. We don't offer traditional forex or equity futures. Instead, we believe crypto perpetual futures are the ultimate vehicle for traders with FX or futures backgrounds.
Forex vs. FX Futures
Both involve trading one currency against another. But unlike spot forex where brokers often control pricing, FX Futures are exchange-traded, meaning price discovery is set by the market, not the broker.
Crypto Perpetual Futures
These work similarly to FX Futures but track crypto assets like Bitcoin, Ethereum, and many altcoins. They offer the same professional structure and transparency while giving traders access to the fastest-moving market in the world.
Why Choose CoinProp?
Direct Market Access
Trade directly on leading crypto exchanges with our advanced platform, ensuring the best execution and liquidity.
Free Trial
CoinProp gives you full access before you commit. Test your skills on the CPX terminal, master the CoinProp evaluation process, and find out if you're ready — all at zero cost!
24/7 Trading
The crypto market never sleeps, and neither does our platform. Trade around the clock with full support.
Advanced Trading Platform
Trade on our proprietary CPX platform with advanced charting tools, real-time market data, and sophisticated risk management features.
One-Step Evaluation
Our streamlined evaluation process gets you trading with funded capital faster than any other prop firm.
Generous Reward Split
Earn up to 95% of your trading profits with our industry-leading profit-sharing structure.
Ready to Start Trading Crypto Futures?
Apply your knowledge with a funded trading account from CoinProp.
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