Trading FAQ
Frequently asked questions about trading on Cafe Trading
Documentation
Trading Questions & Answers
Find answers to common questions about trading perpetual futures and spot markets on Cafe Trading. From basic order types to advanced trading strategies, we've got you covered.
Trading Basics
Learn about order types, leverage, and basic trading concepts.
Advanced Features
Understand advanced trading features and risk management tools.
Fees & Costs
Get clarity on trading fees, funding costs, and other charges.
Trading Basics
What's the difference between spot and perpetual futures trading?
Spot trading involves buying and selling actual cryptocurrencies at current market prices. Perpetual futures are derivative contracts that track the price of the underlying asset without expiration dates. Futures allow leverage and the ability to profit from both rising and falling prices.
How do I place my first trade?
After depositing funds, go to the trading interface, select your trading pair (USDT/THBT), choose between spot or futures, select your order type (market or limit), enter the amount, and click buy or sell. Start with small amounts to familiarize yourself with the platform.
What are market orders vs limit orders?
Market orders execute immediately at the current market price but may have slippage. Limit orders let you set a specific price and will only execute when the market reaches that price. Limit orders offer better price control but may not execute if the price doesn't reach your target.
How does leverage work?
Leverage allows you to control a larger position with less capital. For example, 10x leverage means you can control $10,000 worth of USDT/THBT with just $1,000. While this amplifies potential profits, it also increases potential losses. Higher leverage means higher risk.
What is liquidation and how can I avoid it?
Liquidation occurs when your position's losses exceed your available margin. To avoid it: use lower leverage, maintain sufficient margin, set stop-losses, monitor positions closely, and don't risk more than you can afford to lose. The platform shows your liquidation price in real-time.
Order Management
Can I cancel or modify my orders?
Yes, you can cancel pending orders anytime before they execute. For modifications, you'll need to cancel the existing order and place a new one. Partially filled orders can be canceled for the remaining quantity. Market orders cannot be canceled once submitted.
What are stop-loss and take-profit orders?
Stop-loss orders automatically close your position when losses reach a predetermined level, limiting your downside risk. Take-profit orders automatically close profitable positions at your target price. Both help manage risk and remove emotions from trading decisions.
Why didn't my limit order execute?
Limit orders only execute when the market price reaches your specified price. If the price doesn't touch your limit price, the order remains pending. Check market depth, adjust your price closer to current market levels, or use a market order for immediate execution.
How do I close a position?
For futures positions, click the "Close" button in your positions panel or place an opposite order of the same size. For spot positions, sell your holdings through a market or limit order. You can also partially close positions by specifying a smaller quantity.
Fees and Costs
How are trading fees calculated?
Trading fees are calculated as a percentage of your position size, not your margin. Maker fees (0.02%) apply to limit orders that add liquidity. Taker fees (0.05%) apply to market orders that remove liquidity. Higher trading volumes qualify for lower fee tiers.
What are funding fees and when are they charged?
Funding fees are periodic payments between long and short position holders in perpetual futures, charged every 8 hours. When funding is positive, longs pay shorts. When negative, shorts pay longs. The rate typically ranges from -0.01% to +0.01% and is displayed in real-time.
Are there any hidden fees?
No, Cafe Trading operates with complete fee transparency. All costs are displayed before you confirm transactions. The only fees are trading fees, funding fees for perpetual futures, and blockchain network fees for deposits/withdrawals. No hidden charges or surprise fees.
How can I reduce my trading fees?
Use limit orders instead of market orders to qualify for maker fees. Increase your 30-day trading volume to access lower fee tiers. The more you trade, the lower your fees become. VIP levels offer significant fee reductions for high-volume traders.
Risk Management
How much should I risk per trade?
A common rule is to risk no more than 1-2% of your total account balance per trade. This helps preserve capital during losing streaks. Calculate your position size based on your stop-loss distance and risk tolerance, not on how much you want to make.
What leverage should beginners use?
Beginners should start with low leverage (2-5x) or no leverage at all. High leverage amplifies both profits and losses, making it easy to lose your entire account quickly. Focus on learning trading skills before increasing leverage. Experience is more valuable than high returns initially.
How do I set proper stop-losses?
Set stop-losses based on technical levels (support/resistance), volatility (ATR), or risk tolerance (1-2% of account). Place them below support for long positions and above resistance for short positions. Don't move stop-losses against you to avoid losses.
What should I do during high volatility?
During high volatility: reduce position sizes, widen stop-losses to avoid noise, avoid FOMO trading, stick to your plan, and consider staying in cash if uncertain. Volatility creates opportunities but also increases risk. Patience is key during turbulent markets.
Technical Trading Questions
How do I read the order book?
The order book shows pending buy orders (bids) on the left and sell orders (asks) on the right. Green numbers represent buy orders, red numbers represent sell orders. The spread is the difference between the highest bid and lowest ask. Large orders can indicate support/resistance levels.
What trading indicators are available?
Cafe Trading integrates TradingView charts with 100+ technical indicators including moving averages, RSI, MACD, Bollinger Bands, and more. You can customize your charts, draw trend lines, and save your analysis. All standard technical analysis tools are available.
Can I use trading bots or APIs?
Yes, Cafe Trading offers REST and WebSocket APIs for algorithmic trading. You can connect third-party trading bots or develop your own strategies. API documentation is available in our developer section. Rate limits apply to ensure fair usage.
How accurate are the price feeds?
Cafe Trading uses multiple price feeds and market makers to ensure accurate pricing. Our prices are derived from major exchanges and updated in real-time. The mark price used for liquidations is calculated using a fair price index to prevent manipulation.
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