HashKey Global Futures Platform

  • GlobalOps

    Isolated Margin Mode Now Available on HashKey Global Perpetual Futures
    Dear HashKey Global Clients,
     
    To help you achieve risk isolation when trading multiple perpetual futures simultaneously, HashKey Global has officially launched the Isolated Margin Mode. Users can now select either Cross Margin or Isolated Margin mode on the trading page.
     
    Thanks for your support & enjoy your trading!
     
    Start Trading Now
     
    About HashKey Global
    HashKey Global is a digital asset trading platform operated by HashKey Bermuda Limited under a Type F license granted by the Bermuda Monetary Authority, providing mainstream trading and service products such as LaunchPad, contracts, leverage, etc. This information does not constitute an offer, solicitation, or recommendation for any investment product. Investing and trading virtual assets involve risks. HashKey Global does not service users from Hong Kong, United States, Mainland China and certain other jurisdictions in compliance with laws and regulations. Certain services, features, and campaigns may not be available in your jurisdiction.
    For more details, please visit global.hashkey.com
    Follow us on Twitter，Discord and Instagram.
     
    Disclaimer: In compliance with local regulations, HashKey Global does not offer services to individuals in the United States, mainland China, Hong Kong, and certain restricted countries or regions. This material is for informational purposes only and is not intended to be distributed or relied upon by individuals in Hong Kong. This material does not constitute an offer to buy or sell any financial products, nor should it be considered as investment advice. Investing in digital assets involves risks. Investors should not make investment decisions based solely on this press release, but should carefully evaluate their suitability to participate in any investment products based on their own investment experience, investment objectives, financial situation, and other relevant conditions.
     
    Risk warning and disclosure: Buying, selling, and holding cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in a significant loss. HashKey Global is not responsible for any loss that you may incur from price fluctuations when you buy, sell, or hold cryptocurrencies. Please refer to our Risk Disclosure Statement for more information.
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  • GlobalOps

    Hashkey Global Increases Maximum Leverage for Perpetual Futures to 20x
    Dear HashKey Global Clients,
    HashKey Global increases maximum leverage for Perpetual Futures to 20x. This adjustment does not impact existing positions, and users may select their preferred leverage level based on individual trading requirements.
    For further information about tiers and leverages, please refer to "HashKey Global Perpetual Futures Trading Rules".
     
    About HashKey Global
    HashKey Global is a digital asset trading platform operated by HashKey Bermuda Limited under a Type F license granted by the Bermuda Monetary Authority, providing mainstream trading and service products such as LaunchPad, contracts, leverage, etc. This information does not constitute an offer, solicitation, or recommendation for any investment product. Investing and trading virtual assets involve risks. HashKey Global does not service users from Hong Kong, United States, Mainland China and certain other jurisdictions in compliance with laws and regulations. Certain services, features, and campaigns may not be available in your jurisdiction.
    For more details, please visit global.hashkey.com
    Follow us on Twitter，Discord and Instagram.
     
    Disclaimer: In compliance with local regulations, HashKey Global does not offer services to individuals in the United States, mainland China, Hong Kong, and certain restricted countries or regions. This material is for informational purposes only and is not intended to be distributed or relied upon by individuals in Hong Kong. This material does not constitute an offer to buy or sell any financial products, nor should it be considered as investment advice. Investing in digital assets involves risks. Investors should not make investment decisions based solely on this press release, but should carefully evaluate their suitability to participate in any investment products based on their own investment experience, investment objectives, financial situation, and other relevant conditions.
     
    Risk warning and disclosure: Buying, selling, and holding cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in a significant loss. HashKey Global is not responsible for any loss that you may incur from price fluctuations when you buy, sell, or hold cryptocurrencies. Please refer to our Risk Disclosure Statement for more information.
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  • HashKey Global Team

    HashKey 101: Your Step-by-Step Guide to Hedging

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    Before proceeding, it is crucial to understand that hedging involves inherent risks. Cryptocurrencies are highly volatile, and futures trading can amplify these risks. Conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
     

    1. Understand Hedging and Futures Contracts

    • Hedging: Protecting Your Investment
    Hedging is a risk management strategy used to protect an existing investment from potential losses. In the context of cryptocurrencies, it involves using financial instruments, such as futures contracts, to offset potential declines in the value of your digital assets.
    Think of hedging as buying insurance for your crypto portfolio. While you hope the value of your crypto increases, hedging can protect you if the market takes a downturn.
     
    • Futures Contracts: The Hedging Tool
    A futures contract is a legal agreement to buy or sell a specific asset at a predetermined price on a future date. In the crypto world, these contracts allow you to lock in a price for a cryptocurrency at a specific point in time.
    By using futures contracts, you can offset potential losses in your crypto holdings. For instance, if you believe the price of Bitcoin might drop, you could sell a Bitcoin futures contract. If the price does indeed decline, the profit from the futures contract can offset the loss on your Bitcoin.
    Remember: Hedging doesn't guarantee profits; its primary purpose is to manage risk.
     

    1. Register HashKey Global, pass KYC and Open a Futures Account

    Join our Discord for step-by-step guides on
    • Registration & KYC
    • Deposit & Spot trading
    • Futures trading
     

    1. Selecting the Underlying Asset

    The underlying asset is the cryptocurrency you are hedging against. Consider the following:
    • Your Crypto Holdings: If you primarily hold Bitcoin, hedging Bitcoin futures might be appropriate. If you hold a significant amount of Ethereum and fear a price drop, you might choose to hedge with Ethereum futures.
    • Market Correlation: Analyze the correlation between different cryptocurrencies. If two cryptocurrencies move together, hedging one with the other might be effective.
    • Market Sentiment: Consider the overall market sentiment. If the entire crypto market is bearish, hedging a basket of cryptocurrencies might be a safer option.
    • Volatility: Highly volatile cryptocurrencies might require more frequent adjustments to your hedge.
    • Liquidity: Ensure the futures contract for the chosen cryptocurrency has sufficient liquidity to avoid slippage.
     

    1. Choosing the Conditions

    The conditions of your futures contract refer to the contract's specifications, such as expiration date, contract size, and order type.
    • Expiration Date: Consider your expected holding period for the underlying asset. Choose an expiration date that aligns with your hedging timeframe. For instance, if you plan to hold Bitcoin for six months, choose a futures contract expiring in approximately six months to effectively hedge the position.
    • Contract Size: Determine the contract size that matches your desired hedge amount. If you hold 1 Bitcoin, select a contract size that hedges this equivalent value.
    • Order Type:
      • Market Order: Executes immediately at the current market price.
      • Limit Order: Allows you to specify the price at which you want to buy or sell the contract.
      • Stop-Loss Order: Automatically sells your contract if the price reaches a specified level, limiting potential losses.
      • Take-Profit Order: Automatically closes your position when the price reaches a specified level, securing profits.
     
    Example:
    If you want to hedge your Bitcoin holdings for the next month, you might choose a Bitcoin futures contract expiring in one month with a contract size of 1 Bitcoin. To limit potential losses, you can set a stop-loss order at a specific price.
    Remember: The optimal conditions for your hedge will depend on your risk tolerance, market conditions, and investment goals. It is essential to conduct thorough research and consider consulting with a financial advisor.
     

    1. Monitor Your Position

    • Track market movements: Keep an eye on the price of the underlying cryptocurrency and the futures contract.
    • Manage risk: Use stop-loss and take-profit orders to protect your position.
    • Consider adjustments: Be prepared to adjust your hedge based on market conditions.
     

    1. Close Your Position

    • Buy back the contract: When you're ready to unwind your hedge, buy back the futures contract to close your position.
    • Calculate profit or loss: Determine the net profit or loss from your hedging strategy.
     

    Additional Tips

    • Start small: Begin with a small position to gain experience.
    • Diversify: Consider hedging multiple cryptocurrencies.
    • Use leverage cautiously: Understand the risks associated with leverage.
    • Stay informed: Keep up-to-date with market news and analysis.
    Remember: Hedging is a complex strategy. It's essential to practice risk management and consider your financial goals before making any decisions. HashKey Global may offer educational resources and tools to assist you in your hedging journey.
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  • HashKey Global Team

    HashKey Futures Trading 101: Key Terms and Formulas in Futures Trading
    Futures trading can be a complex world, full of specific terminology and formulas. This article aims to simplify these concepts to help you navigate the futures market with confidence.
     
    Long: Taking a long position means buying an asset with the expectation that its value will increase. This strategy reflects a bullish attitude towards the market.
    Short: Shorting involves selling a security you do not own, with the hope of buying it back at a lower price. This strategy is used when an investor anticipates a decline in the asset's price in the short term.
    Collateral/Margin: Collateral is an asset of value pledged to secure a loan. In futures trading, this is referred to as margin. It ensures that the trader can cover potential losses.

    Prices:

    • Entry price: The average price at which you buy or sell to open a position.
    • Close price: The average price at which you buy or sell to close a position.
    • Last price/market price: The most recent transaction price of the asset.
    • Mark price: The mark price represents an estimated value of futures contracts, taking into account various factors. It is a comprehensive price based on index price, used for PNL calculation and liquidation.
    • Index price: The index price is an integrated price derived from multiple exchanges, providing a benchmark to compare against different exchange prices.
    Liquidation: Liquidation occurs when all or part of your position is forcefully closed, depending on the margin mode.

    Margins:

    • Cross margin: In cross margin trading, your entire margin account serves as collateral for all open positions. This strategy distributes risk across all assets, helping to guard against liquidation.
    • Isolated margin: Isolated margin allows you to allocate a specific amount of capital to a single trading position, isolating the funds from your overall account balance.
    • Maintenance margin: The maintenance margin is the minimum amount of equity that must be maintained in the margin account to avoid liquidation.
    • Margin balance: The margin balance refers to the funds occupied in the position.
    • Maintenance Margin Ratio (MMR): The MMR is calculated as Maintenance Margin / Margin Balance. When the MMR reaches 100%, liquidation will occur.

    Profit and Loss (PNL)

    • Profit and Loss (PNL): PNL is calculated as (entry price - close price) * quantity.
    • Return on Investment (ROI) & Return on Equity (ROE): ROI and ROE measure the profitability of an investment relative to its cost or the equity involved.
    Funding Fee: The funding fee is calculated as Position Value * Funding Rate. It bridges the gap between the spot price and the futures contract price, managing profits and increasing liquidation risks.
    Auto-Deleveraging (ADL): ADL refers to a forced liquidation mechanism to control platform risk when a counterparty has a position shortfall or in extreme market conditions. When ADL is triggered, the ADL engine selects users with the highest leverage return to reduce their positions.
    Take Profit Order (TP): A take-profit order specifies the exact price to close an open position for a profit.
    Stop Loss Order (SL): A stop-loss order instructs to close a position once a specific target is reached or exceeded to prevent further losses.

    Time in Force (TIF)

    Time in Force (TIF): TIF is an instruction indicating how long an order remains active before it is executed or expires. Common TIF options include GTC, IOC, FOK, and Post Only.
    • Good Till Cancelled (GTC): GTC orders remain in the order book until filled or canceled by the user (limit order).
    • Fill or Kill (FOK): FOK orders are executed only if they can be fully filled. For example, a FOK order to buy 1 BTC at $35,000 will only execute if there is at least 1 BTC available at that price.
    • Immediate or Cancel (IOC): IOC orders execute against available orders in the order book immediately. Any unfilled portion of the order is canceled (market order).
    • Post Only: Post-Only Orders are placed in the order book and only execute as maker orders. If they cross the book, they are canceled, ensuring you only pay maker fees.
     
    Understanding these terms and formulas is essential for effective futures trading. By grasping these concepts, you can better navigate the market and make informed trading decisions! Dive into HashKey Global compliant futures journey today!
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