Solana Futures & Perpetual Guide: Trade SOL Futures On Delta Exchange

Understand what SOL futures are and how to use the leverage in futures to amplify your trading gains

Interested in trading Solana futures with Delta Exchange?

SOL Contracts Listed on Delta Exchange

Solana futures enable you to take long (you profit when market goes up) and short positions (you profit when market goes down) on SOL. Futures have in-built leverage which acts as a multiplier to your returns. Currently, the following Solana contracts are listed on Delta Exchange.

Solana Perpetual100x

Buy

Sell

SOL Futures Contract Details

Contract Name	SOLUSD
Description	Solana Perpetual
Max. Leverage	100x
Margin Currency	USD
Taker Fees	0.05%
Maker Fees	0.02%
Contract Type	perpetual futures

What is Solana Futures Trading?

Solana Futures is an agreement between two parties to buy or sell Solana at a predetermined future date and price. The futures contract derives its value from the underlying cryptocurrency, Solana in this case. Thus the price of a Solana futures contract moves broadly in sync with the price of Solana.

Trading futures is thus an alternative to actually buying or selling the underlying crypto (aka spot trading). In spot trading, you can make profit by buying Solana low and selling it at a high price. This trade however works only in a bull market, i.e. when Solana price is going up. However, in a bear market, there is no trade possible in spot trading. Furthermore, leverage trading is not possible in spot trading.

Trading Solana through futures offers several advantages over spot trading of Solana, namely ability to both long or short and get access to leverage.

Trade profitably in all market conditions

You can profit from rising SOL price by going long Solana futures. And, when SOL price is falling, you can make profits by going short. This feature of futures trading enable you to navigate all types of market conditions profitably. Compare this with directly buying Solana. When price is falling, you can either sell your Solana or suffer losses. In spot trading, there is no way of profiting from falling prices.

Hedge Price Risk

If you are a HODLer, you can still use futures to mitigate price risk. Say, you hold SOL. You can mitigate the risks you face when Solana is falling by going short SOL futures. In this case, a short futures position acts as a downside protection by effectively locking the $ value of your portfolio without the need for selling your Solana. Judicious use of futures as hedge can make you a better and stronger HODLer.

Amplify trading gains with leverage

Leverage enables you to open positions that are bigger than your trading capital. If you can open a position that is 10 times bigger than your trading capital, then you have 10x leverage available to you. The maximum allowed leverage for futures listed on Delta Exchange is as high as 100x. There are two ways of thinking about leverage:

Leverage as capital efficiency driver: For opening a position of a given size, higher the leverage lower the trading capital required. The leverage in spot trading is always 1x, while it is 3-4x in margin trading. This means futures is 20 to 100 times more capital efficient than spot or margin trading.
Leverage as a returns amplifier: Because in a leverage trade position size is greater than the capital deployed, impact of prices moves gets magnified. The return on capital deployed is leverage times the price return. This means that you can amplify your trading gains the effective use of leverage.