How to: Trade Deribit BTC Futures [Tutorial]



what up guys Lika here today I'm stoked today cuz today I'm going to take you through a really really great derivatives and options exchange called derivate dri bi T derivatives Bitcoin derivate I'm excited because I had a chance to meet these guys a couple months ago in Amsterdam they are Dutch and that you know I knew about der but for a couple years and they were cool you know but they didn't have a ton of liquidity but that is changing and it's changing really quickly have a look here turbot has been climbing steadily the ranks of exchanges by volume there ahead of bit flyer now so yeah and the reason why they are gaining so much ground is because they've launched this really great new product this is what you've probably heard about they've got a perpetual swap contract with up to 50 times leveraged direct competitor two-bit mechs they say so themselves and it's it's really gaining liquidity it's it's it's a great product we're gonna talk about it in depth they also have the these other futures contracts this one I believe expires every week this one is gonna expire August 31st this one expires September 28th this one just expires December 28th if you're going to use debit I hope that you'll use the affiliate link in the description it does help us make these videos going forward but it also will help will allow you to save 10% off your trading fees for six months so very similar to bit max so use the link in the description set up your account and as soon as you have your account set up I would highly recommend you go to the Security tab make sure to a phase enable just like anywhere else you don't want to lose your clients or something stupid yeah debit really really clean interface I love it there's it's pure HTML with really tight icons and everything I don't want to see a bunt a really confusing order screen so you've got that if you also look on their on their left top tab here they've got this blog section if you pop that open get this really clean sort of news announcements by debit and look we're gonna talk about the perpetual swaps contract cuz it's just it's just killer I'm really really happy with it blazing fast execution truth it's been unbelievably fast and quick we're gonna look at it continuous pricing so this is probably the coolest thing about this perpetual swap and really innovative under bits part so what they've done is as you know on bit max every eight hours there's a funning fee that happens for you to hold your position and it often creates like these weird sort of funding pumps people will jump in right before the funding period to get that discount or get that fee and vice-versa so but dare but does is that they have a continuous term a fee that's being transferred to the other side at all times it's a really tiny amount so obviously but it just it's really really innovative and I think it's great they've also got a really fair liquidation model which you can check out if you go to their fees page they explain how the liquidation works you can check it out they've got an insurance fund just like just like others the fees on debit they're gonna be on the petrol contracts here they're gonna be the same as bit Mex you've got that maker rebate of a quarter point and the taker fees three quarters of a point the futures are have really great fees here – you can see zero two zero five okay so to get started using debit you're obviously going to need to make a deposit they only accept Bitcoin of course you can click here to get a new deposit address you the minimum is zero zero one BTC and it's going to register in your account after one confirmation so just a few minutes right there's one more important thing I'm gonna I'm gonna suggest you do before we get started and that is to set up a sub account so if you go in the side here you click sub accounts okay so the reason why you want to set up a sub account is to use isolated margin which what you're familiar with on bit max cross which would use all of your accounts equity versus isolated so the reason why you do that is because you want to like basically limit your loss its money management so I I would I would make a sub account and just put in a small amount or what let's say what you're willing to lose into that account so we'll just add a new sub-account it's been created so here it is here I'm gonna change the name of it – I've got one called long let's make one call it's short and there it is so if in order for me to use the account I need to transfer something to it so click the transfer tab grab this we're gonna transfer it all this do the short account so that's one I just created and let's just transfer 0 – gotta quickly verify this on my phone all right so the transfer to the short account has been done it's complete okay so now that we've done that we have to switch back to the sub accounts tab you can see the balance 0 – that we just transferred let's switch to the short account alright so up in here at sub account it shows that we are now logged in to this short account that's great so now what we've done is we've we've isolated it we can only lose this amount leaving this little bit of dust here in my main account and so that's just money management and you and you're really gonna want to do that guys like if you're if you're gonna be trading here you you do have the ability to lose everything so make sure you manage your risks appropriately alright guys so yeah before we go any further initiate the dark theme look at this gorgeous UI with the dark theme I should had this set earlier but ok let's go with this video we're just gonna look at the future so click the features tab you can see the perpetual swap here the other contracts and their expiry date typical order book bid bid side green a side red you can adjust the order block like so so nor the block of with it five within 10 create feature number one absolutely must have a feature like this with every exchange if I click here it's gonna fill in the price for me I mean it's so simple but just ABS the essential over to the right we've got the recent trades pain down here will show your position when you're in a position I'll show it it also show in these tabs the open orders your stops your order history in your trade history so I mean if you guys are familiar with bit makes it all yours it's going to be completely at home here I'll just draw your attention to something important down at the bottom here you're going to see the price from six different exchanges BitFenix bitstamp gtx gemini it bit and crack and what that is is that's going to make up the index price that's used to calculate the funding fee you will either have to pay or you will receive just by keeping a position open all right let me just show you quickly how the funding works it's not that complicated basically either long space shirts or shorts pay Long's if the mark price is above the index price so the price of the perpetual is above the index then Long's are going to pay shorts because there's a premium on the price if it's reversed and the index price is above the mark price that means shorts are going to pay Long's because there's a discount on the price so you can see the funding right here and it's constantly changing and it's going to constantly come out of your P&L but you can see it's it's it's very unlike bit max it's it's a different model and and I think it's really ingenious and and interesting on their bits part I'm sure that other exchanges are taking note of their approach to the funding all right now that we've gotten that all out of the way let's take a look at the order page which is really really well laid out I really like it you'll notice there's a little calculator here where you can calculate exactly what your profit and loss P&L will be on taking your long or short positions really handy in the within the order book here you'll notice that you can either denominated in contracts and unlike bit max which is one dollar per contract on der bit it's ten dollars per contract so keep that in mind you can also denominator everything in Bitcoin which isn't bad that's kind of nice to do because that's what's in your account so before I get to edit myself just to point out again this is the last traded price here so that's going to be the perpetual price the market price is here and the index price is here so right in the middle of the book like that oh yeah I like to make this adjustment if you click the futures charts tab you'll get this trading view chart so it's a little easier to pick your spots this way okay so let's take a look down at the order pane here I really like how they about this laid out so you got your three order types here limit stop limit and market market order is going to execute an order immediately against the books at the last ask price so with a market order you're gonna get your order filled right away like maybe in a FOMO situation you'll need to place a market order but you're gonna always pay the taker fees or you can always pay that taker fee point zero seven five percent whereas with a limit order you have the opportunity to get that market maker fee point zero two five percent paid to you for providing liquidity to the market so in a long situation you want to get that maker fee you're going to always need to place an order below the last price if you were going short you're going to need to always place an order above the last price so that's how you get that enter to get that maker fee if you take look down here you have this time enforce rules you've got the default good till cancel this essentially allows you to have partial fill so you're going for ten contracts you might only get five contracts and the rest of the orders will stay on the book until filled that brings two filler kill and execute the order immediately or not at all so if it doesn't get filled then it completely then it will not execute and IOC meat-eater cancel that will place your order and any person of the order that is can't be filled will be cancelled so that's like if you get filled for five the other five will be cancelled off the books so that's how those work if you have a look down here you got the posts only button so that will always ensure that you get that maker fee and if it if it's gonna match against the book it'll just cancel it so you're gonna always assure you that you're gonna get to make a fee I'm just gonna leave it off here because sometimes I want to place an order above the price to immediately get it or whatever hidden does what you think it should do it hides the order on the book you're gonna always pay the taker fee in this case and there's also a small fee I'm not exactly sure how it works I couldn't find any reference to it but I believe there's a tiny fee as well all right so fast forward a few hours here and we have gotten a bit of a tip on Bitcoin so I'm gonna try and make a bid and catch it okay denominated my accountant to BTC I'll I'll do an example of a leverage position so we've only got point zero to B to C in this account but let's make a 3x position would be point zero six which is three times that it's gonna de nominate the equivalent amount of contracts which is 40 it's gonna put it in there and let's set a price I think there's a decent chance we'll get a pullback to 67 17 so if I click on that price there's our price this is the margin requirement for this position you can see here g-good tail cancel set everything looks good jeez I don't know if well we'll get that look at that spot but let's go ahead and try it shows the bid our bid price margin requirement and the total of BTC will we'll be pressing click buy order has been submitted you can see at the top if you scroll down now you'll see under the open orders tab our order at sixty seven seventeen none of its filled right so while we're waiting for the price to come down I'll just point out a couple things with the order book here you can break it down into comments of 5 10 100 let's just keep it on 1 you can see our order here at 67 17 but what I like is that you can see the amount the size of the amount of Bitcoin at these price levels okay and you can see the cumulative total of those asks in this case or bids in this case you can see how they accumulate and you can see sort of where the walls of Bitcoin are where the borders bulk up it can help you in placing your orders but yeah the only thing that I would suggest to Dera is like you know you've already got these values with the sizes I just love seeing the walls visually represented like with some some HTML on this side you know I love that but it's just a minor detail I mean this is the classic order book view so you should be very used to it you can see there is a bit of a wall here at 67 18 just to speed this up I'm gonna move my bid up to 67 1850 so I'll hopefully I'm a bit front running this wall a bit so let's edit 67 18 point 5 0 let's do that it's been edited six seven eighteen point five and you can see that it's moved up here I think there's a good chance that this order is gonna get filled there we go we've just been filled if I go to my order history I see the order six seven 1850 and I've been paid the fee you can see the negative value here means I've been paid the fee at point zero to five percent which is fantastic this is what we want okay great so we've opened our position now if you scroll down to the positions tab you're going to see all the pertinent information your position this saw is 40 contracts 40 times 10 $400 right this is your full position size the average price 67 18 and a half the most important piece of tat is your liquidation price but the price gets to 5,000 86.0 for if the mark price gets to there you will be liquidated the entire position will be gone it'll be turn to 0 and remember in order to trade with leverage it's a little outside of the scope of this video but code under documentation futures and they explain exactly how the initial initial margin and the maintenance margin work please read and understand that and the rest of the tab you see you can see your your profit and loss on this position and your session P&L over here and the initial margin and the maintenance margin and that's your position tab the other thing I'll quickly point out is the funding rate that all-important funding rate so it's negative zero for three percent that means that we're actually gonna get paid for being long with this position constantly so that's how that works you can also see the open interest here of the entire contract the open interest of this entire contract is 7.1 million so that's seven hundred ten thousand contracts okay great so we know how to place our limit orders to intelligently get that maker rebate every time okay let's look at something else that's really important and that's placing a stop limit or a stop order and that's essentially a risk management tool to say that if the price gets to a certain point get me out so on the stop limit order you're gonna want the trigger to be the mark price rather than the index price the stop price is the point at which this order is going to trigger so let's say if it gets below this point sixty seven ten to trigger the order and this is the amount of Bitcoin that was our full position size and the actual price that it's going to place on the order book is going to be the price field so at sixty seven ten place an order on the order book at sixty seven oh eight and what that's going to do once again is it's going to allow in order to rustic into the order book and we're going to get that maker fee so it's intelligently placing your stop just above put the stop price in this case of a long put the stop price just above the actual price that's going to that appear on the book so this is the trigger price this is the actual price and let's go ahead good to kill obviously in this in the case of placing a stop order instead of by you're gonna click cell right so let's go ahead and do that now there would be the order with you said 6710 the stop price your price is gonna plate be placed in the order book sixty seven oh eight let's do that it's been placed let's go down here to stops and you can see that your spot price is sixty seven ten it's going to trigger your bought your actual sale price of sixty seven oh eight and of course you can edit that just like any other order so that's how to manage your risk place a stop order right guys especially if you're just getting started out with crypto trading I would personally recommend that you always specify a stop limit on every single trade and it's just to ensure that you don't get liquidated on like a really large abnormal down move or a down wick or just one candle and it happens often so I would get into the habit of always placing a stop but where that stop is is up to you so most traders are comfortable with around 2% maybe as high as 3% of every trade so whatever you're comfortable quote-unquote losing to stay whole then that's the value that you should use okay so we know how to buy how do we sell it's really just the reverse of what we did so let's take a look at our chart here let's say if the price gets to sixty eight hundred that we want out of the position so on our limit tab here we'll go back to BTC let's say if the price goes to sixty eight hundred to take us out of the position it's really just that easy as long as you're placing your limit order above the current price it won't trigger until it reaches that price so let's go ahead and place a sell above us or to chive limit 6800 position size and the order has been placed if we go down to open orders we will see our cell there at 6800 none of it's been completed we can of course edit it with the edit button so now our position is ready to take us out of the visit we don't have to do anything to sell it'll automatically sell once it reaches that price right okay so I showed you the perpetual swap which is a futures product that runs in perpetuity without an expiry date it's always going but I didn't show you these other contracts that Dermot has so these ones do not carry the funding fee like the perps does so these ones might be better to hold if you're looking a hold of position for like a length of time like a week or two or a month or even longer so this one I believe it says a monthly contract so this one expired has an expired date every 30 days this one's actually going to expire in three days shows you the open interest is just under 600 BTC and it also shows you that there's a bit of a discount they're trading around 10% under the index it's an annualized calculation so it's not exactly 10% but it's it'll give you an idea of whether something's a bargain or not now this one here is a hundred and or ninety day contract and this one here is I believe a six-month contract or 180 day contract so those are the other features products that you have on Dara bit right guys before I wrap up I'll just go over a few of the pros and cons of Dara bit first of all I really really like the platform I've been using them for weeks now top of the list for pros they're a viable turn it over to bit max I mean bit max has the biggest most liquid perpetual swap on earth and David is really giving them a run for their money and I love that I think that's great to have some competition they've got a sweet minimalist interface which I love they've got killer fees on par with bit max which is great and probably the best thing I mean if you've ever used bit max during times of extreme volatility in Bitcoin you know about the no connection error I've been using Durbin for weeks through some of those periods where bit Mex was down or having problems accepting orders and I didn't have those problems with with therapy and there but also has been claiming publicly that they can handle the load of even a lot a lot of users like bit max has so that sounds really great they've got this progressive funding structure which we went over in the video I think that's really really forward-looking with therapy and really cool they've got the intelligent liquidation engine which I which I think you should check out in their in their documentation it's a it's a different approach to liquidation they don't completely liquidate your account but they liquidate you in tranches like I think if you have ten Bitcoin in your in your in your trade they will liquidate you one Bitcoin at a time but you have to you have to check that on the documentation so Turbots growing very very fast their liquidity problems they'll probably be a thing of the past right away I mean they're the I've watch their perpetual swap product grow really really quickly also they have mobile apps for iOS and Android if you take a look under their documentation under mobile apps you can see that they've got mobile apps for iOS and Android that's really great okay guys moving on to the con side and really honestly I really like the platform DARAB its platform is wonderful but if I did have any cons they would mostly be suggestions for the gods turbit so I would say maybe some more visual enhancements on the UI front would be really nice to have for instance we really love to see on the chart to show our limit orders our stop orders and our P&L line we'd love to see that on the chart so I hope that that's coming at some point we've been swell with that with the other exchanges I also really like to see on the order book sort of a visual regional representation of the bid and ask bowls or the amount of coins at each level so that you can kind of get a visual idea of where the support and resistance is that would really be nice not necessarily but nice I also heard that the guys at Jared are going to remove the need for sub accounts for your cross and isolated margin positions so that's coming and that's great we can also think about more order types a trailing stop is is really really nice to have so I heard that that's coming too so that's something that's done in the pipe maybe maybe add some more coins but you know to be honest I have a feeling that they're a bit Bitcoin debit is only gonna focus on Bitcoin and I think that there's nothing wrong with that I mean Bitcoin bitcoin is king so I mean maybe that that's just the direction that they're gonna go but who knows so yeah those are just a list of my pros and cons obviously I'm overjoyed with terabit so I didn't have a lot of negative negative things to say but those are some suggestions going forward and yes guys I am aware that david has a really unique and well-known BTC options product within their ecosystem and I do want to do a whole video just on that but I need to kind of get my head around it a little bit more it's deep so I'm gonna save that for a little bit later I'll do a full video just on the debits BTC options system alright guys that about does it for Durbin a great new competitor to bit max if this video helped you in any way to get started with the system it would really help us and you if you use the link in the description to open your account remember you'll save 10% on all your fees for six months and it'll really give you a kickstart to your account and help you save those fees because they really do add up so this video helped you use a link in description we really appreciate it like comment and subscribe for more and good luck with your trading guys

8 thoughts on “How to: Trade Deribit BTC Futures [Tutorial]”

  1. Brother, great video, i read the whole documentation section on the Deribit site, and i must say you did a great job explaining all the relevant details. And i agree, the option part is deep, i will be reading that section next. Thx for the video

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