KuMEX, short for KuCoin Mercantile Exchange, represents an innovative cryptocurrency trading platform. It helps traders to utilize various leveraged contracts. They’re bought and sold in Bitcoin.
Unlike conventional cryptocurrency exchanges, KuMEX currently manages Bitcoin only. All the gains and losses are denominated in Bitcoin.
It is worth noting that KuMEX permits the trading of cryptocurrency contracts. There is a basic difference between spot trading and contract trading. While the former represents the exchange of two unique cryptocurrencies at spot price, with the latter, users trade financial contracts with other people.
A contract in KuMEX represents an agreement to purchase or sell a specially cryptocurrency in a predetermined price at a specified time in the future.
Additionally, KuMEX allows Bitcoin margin trading with different leverage for the various contract types. However, it’s crucial to understand that margin trading carries high risks of capital losses, and it needs to be exercised with extreme caution and by experienced traders.
Different Kinds of Contracts At KuMEX
There are two kinds of contracts in KuMEX. These include:
- Bitcoin Perpetual Mini Contract (XBTUSDM)
This is a perpetual futures contract with no expiry date. It means that users can open and close their positions at will. 1 contract is worth $1 of Bitcoin. The financing interval is every 8 hours. Dealers can use a leverage of up to 100x.
- Bitcoin Mini Contract 3-Month Settlement
This is a cash-settled Bitcoin futures contract that expires every 3 months. The contract is worth $1, allowing more people for exposure to Bitcoin’s cost. Dealers may use a leverage of up to 20x.
How To Open An Account And Deposit In KuMEX?
Opening an account on KuMEX is relatively simple. Either in the event you currently have a KuCoin accounts, or else, you’ll want to open a KuCoin account here, then browse to KuMEX on the main menu.
Upon hitting the sign-up button on KuCoin, the consumer will get the next screen:
All that’s needed is an email or a telephone, where the consumer will be given a verification code. Upon confirming it, he would need to set his password, and that is it.
The advantage of KuMEX is that it requires no KYC confirmation, which adds more to the anonymity — something a whole lot of cryptocurrency traders are awaiting.
When the account is set up, the next step is to deposit some funds. To do so, but the user needs to install his two-factor authenticator along with a complex trading password, both of which can be performed quickly and will contribute to the safety of your electronic assets
Then, in account settings, users will have the ability to deposit Bitcoin. They can do so either by sending BTC for their KuMEX speech or by shifting some from their primary account on KuCoin. Unlike asset transfer at other exchanges, moving between KuCoin and KuMEX will be completed immediately.
The Way to Open and Close A Position On KuMEX?
Launching a Position
Opening a position on KuMEX is comparatively straightforward. There are three distinct kinds of orders which users can pick from.
- Limit Order
Limit orders are used when dealers wish to enter the marketplace at a price different than the current spot price.
For instance, if Bitcoin is now trading at about $8,650, a dealer may want to enter the industry after, at $8,700. The limit order above is set up to buy 500 contracts ($1 each), when the price reaches $8,700. There’s also leverage of 5x, so the consumer would get 500 contracts, worth $500 while posting a margin of just $100.
- Market Purchase
This is the most basic and straightforward sort of order. They’re placed when a trader wants to buy at the current market price.
In the above example, we have set up a normal market order to buy 500 contracts ($1 each) at market price. Again, there’s a leverage set in 5x.
- Cease Loss/Take Gain
These orders are utilized to maximize trading performance. They’re set to mitigate losses or to maximize profits and reduce risk.
There are a number of things which must be considered here. First, users need to ascertain the cause — it could be the market price, the index price, or the previous price. Then, they would have also to ascertain the order type — it could be either limit or market order.
In this instance, we have set a stop-loss order that would see a normal market arrangement for 500 contracts with 5x leverage set and implemented when the market price reaches $8,800.
Instead, users may also prefer to use a stop-limit purchase. In cases like this, when the trigger condition is fulfilled, the limit order will be placed in the order book, and as soon as the limit price is reached, it’ll be executed.
KuMEX also provides Take Profit and Stop Loss mechanisms for position performance. From the Take Profit & Stop Loss pop-up box at the position list, users can start the corresponding button, enter the lead Gain or Stop Loss price or a percentage, and place up the order.
Closing a Position
Closing a position can also be relatively straightforward. Once opened, all the positions appear right under the graphs, alongside all of the information about them.
Here, users may monitor all the crucial indicators like the entry cost, current market price, liquidation cost, margin, realized and unrealized gain and loss, etc.
That is also where they could place stop-loss or take-profit orders such as the one in the example above. Furthermore, this is where they can shut their positions using the “close position” button.
To make things more comfy, KuCoin has released KuMEX Lite. This is a simplified version of this KuMEX platform. Its objective is to enhance the consumer experience and to minimize complexity in regards to contract trading. It supports English and Chinese Languages.
Logging to the KuMEX Lite platform is done with the user’s regular account info. This is how the entire trading design looks like:
To allow contracts trading, the user should click on the button on the right side of the display. From that point, placing orders is especially simplified.
Placing long orders occurs through the “long” option when shorting assets occurs through the “short” option. Everything the user must do is input the quantity he would like to trade with and pick a degree of leverage.
Obviously, as it is with the normal stage, the Lite version also has Liquidation prices, which should be carefully monitored in order to not lose one’s position.
KuMEX Trading Charges
The trading charges in KuMEX are correctly detailed in their designated contracts department. The table below summarizes what users need to bear in mind.
A Market Maker — A market maker is a person who places an order that isn’t traded instantly, but it remains and waits for someone to fill or match it in a given point.
A Market Taker — A market taker is a person who places an order that’s instantly matched with an existing order on the order book.
In terms of withdrawal and deposit fees, there are not any. But, therm includes a live chat that’s relatively responsive. There’s also a very complete help center which comprises information about the different kinds of contracts, the way to use them, frequently asked questions (FAQs), etc.
If the matter is more complex, KuMEX gives the choice to open a ticket, where the service team gets back to the consumer relatively quickly.
It is safe to say that KuMEX is a trusted platform. Concerning account security, users can create a two-factor authenticator, in addition to a exceptional trading password, which enhances safety.
At exactly the exact same time, KuCoin, the fundamental platform, is thought of as somewhat secure, and it has not been hacked yet. Their site is protected by an encryption protocol that protects the privacy of their data saved.
In relation to margin trading, KuMEX has employed the so-called Auto-Deleveraging System (ADL). It follows that if a position is taken over by the liquidation motor, the insurance fund will be used to pay the excess expense of the liquidation process — for instance, if the position was closed at a cost lower than the liquidation cost.
In conclusion, KuMEX provides a somewhat simplified user interface in addition to enough tools for dealers to pick from. The experience is seamless and intuitive.
It is also reassuring that the market is a member of an already established organization that has managed to establish its reputation as it was first introduced.
Unlike lots of the other Bitcoin futures exchanges that only offer endless contracts, KuMEX also has 3-month and 6-month cash-settled Bitcoin futures contracts, including more flexibility.
It regularly enjoys serious trading volume on its Bitcoin perpetual contract, giving traders the liquidity they need. Needless to say, it has a ways to go till it catches up with some of the recognized market leaders, but it would appear that the market is headed in the right direction.