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How to Use Derivatives on Blockkoin

Derivatives Trading on Blockkoin

What Are Derivatives?

Derivatives are an advanced trading feature on Blockkoin that allow you to profit from the price movements of cryptocurrencies without owning the asset.

Instead of buying Bitcoin or Ethereum directly, you are making a prediction:

  • Will the price go up or go down?

If your prediction is correct, you earn a profit.
This means you can potentially make gains even when the market is falling, which is not possible with regular spot trading.

How Derivatives Work

Derivatives use leverage, which allows you to open a position larger than your wallet balance.

Think of leverage as a multiplier — it lets you trade with greater exposure using a smaller amount of capital.

Example:

  • You have 100 USDT.

  • You select 10× leverage.

  • You now control a 1,000 USDT position.

If the market moves in your favor, your profit is multiplied tenfold.
If it moves against you, your loss is also multiplied.

On Blockkoin, the maximum leverage available is 15×.
Higher leverage can increase profits, but it also increases risk. Trade responsibly.

Before You Start Trading Derivatives

To trade derivatives on Blockkoin, you will need:

  1. USDT in your wallet
    All derivatives trades are settled in USDT.
    Convert your local currency (ZAR) to USDT in your BKR wallet before starting.

  2. Access to the Advanced Trading Platform
    From your BKR dashboard, click “Advanced Trading” in the top-right corner.

  3. Connected wallets
    Use the same BKR login. Your funds move seamlessly between your BKR wallet and the Advanced Trading Platform.

How to Trade Derivatives on Blockkoin

Step 1: Open the Derivatives Section

  1. Log in to your BKR account.

  2. Click “Advanced Trading.”

  3. In the trading dashboard, select Derivatives.

You will see live market charts, your available USDT balance, and trading pairs such as BTC/USDT and ETH/USDT.

Step 2: Choose a Trading Pair

  1. Select the cryptocurrency pair you want to trade.

  2. Review the live chart and recent price action.

  3. Decide whether you believe the price will rise or fall.

Step 3: Set Your Leverage

Use the Leverage Slider to select between 1× and 15×.

  • Lower leverage (2× – 5×): safer, suitable for beginners.

  • Medium leverage (6× – 10×): balanced, for intermediate traders.

  • Higher leverage (11× – 15×): higher potential reward, higher risk.

Start with lower leverage until you are comfortable with market movement.

Step 4: Go Long or Short

You can profit in either market direction:

  • Go Long (Buy) if you expect the price to rise.

  • Go Short (Sell) if you expect the price to fall.

Example – think of a soccer match:
You do not own either team, but you predict the outcome.

  • Backing Team A to win is like going Long — you expect the price to rise.

  • Backing Team B to lose is like going Short — you expect the price to fall.

You are not buying the team or the crypto, only predicting the result.

Step 5: Add Risk Controls

Before confirming your trade, set:

  • Stop Loss – closes your trade automatically if the price moves too far against you.

  • Take Profit – secures your gains when your target price is reached.

These tools help protect your funds and keep emotions out of trading.

Step 6: Monitor Your Position

After opening a trade:

  • View it in the Positions tab.

  • Track your entry price, margin, profit/loss, and liquidation level.

  • Close your trade manually or let your Stop Loss/Take Profit orders execute automatically.

Understanding Liquidation

If the market moves too far against your position, it may reach a point called liquidation.
This means your margin (the USDT you committed) is used up and your position closes automatically to prevent further losses.

To reduce the risk of liquidation:

  • Use lower leverage.

  • Set Stop Loss orders.

  • Keep extra USDT margin available.

Key Terms

Term Meaning Example
Long (Buy) Predicting the price will rise. Buy BTC/USDT expecting BTC to increase.
Short (Sell) Predicting the price will fall. Sell BTC/USDT expecting BTC to decrease.
Leverage Multiplies exposure relative to your capital. 10× leverage turns 100 USDT into a 1,000 USDT position.
Margin The amount of USDT committed to a trade. 100 USDT margin at 10× = 1,000 USDT exposure.
Stop Loss / Take Profit Automatic tools for managing risk. Trade closes at predefined prices.
Liquidation Automatic closure when margin is depleted. Occurs if the market moves too far against you.

Trading Tips

  • Begin with low leverage (2× – 5×).

  • Always use Stop Loss and Take Profit orders.

  • Maintain sufficient margin to avoid liquidation.

  • Stay updated on market trends and news.

  • Never risk more than you can afford to lose.

Key Takeaways

  • Trade crypto price movements without owning the asset.

  • Profit in both rising and falling markets.

  • Use up to 15× leverage on Blockkoin.

  • All trades are settled in USDT.

  • Use strong risk-management tools at all times.

Final Thoughts

Derivatives on Blockkoin give experienced traders more control and flexibility.
They provide an opportunity to profit in any market condition, but they also require discipline and understanding of risk.

Start small, manage your exposure carefully, and make use of Blockkoin’s built-in protection tools.
With practice and strategy, derivatives can become a valuable part of your trading journey.

Simple. Secure. Global.
That’s Blockkoin.