How to play the Ouyiokex perpetual contract

Perpetual contracts are derivatives contracts that allow you to bet on cryptocurrency price movements without purchasing the underlying asset. They have no delivery date. The gameplay includes: opening a position, holding a position and closing a position. Leverage can magnify profits but also increase risks. Fees include transaction fees and funding rates. Perpetual contract trading is a high-risk investment and requires caution.

How to play the OKEx Perpetual Contract

1. What is a Perpetual Contract

A perpetual contract is a cryptocurrency derivatives contract that allows traders to bet on crypto with leverage The price movement of a currency without buying or selling the underlying asset. Unlike traditional futures contracts, perpetual contracts have no delivery date, so traders can hold positions indefinitely.

2. How to play the perpetual contract

To play the perpetual contract, you need to follow the following steps:

1. Open a position: Decide whether to buy (long) or sell (short) the perpetual contract. Select the number of contracts and leverage.
2. Place an order: Enter the order information on the trading interface, including contract quantity, price, leverage multiple, etc.
3. Position: After opening a position, the trader will hold a perpetual contract position. The profit and loss of the position will vary based on fluctuations in cryptocurrency prices.
4. Close a position: When a trader wants to close a position, he needs to perform the opposite operation to opening a position. For example, if you open a long order, you need to close the short order; if you open a short order, you need to close the long order.

3. Leverage multiple

A key feature of the perpetual contract is the leverage multiple. Leverage allows traders to trade with a higher amount of capital than their available balance. For example, 10x leverage means a trader can control $10 worth of contracts with $1.

However, leverage also increases potential risks. If cryptocurrency prices move against the trader, leveraged positions may yield larger losses.

4. Fees

OKEx perpetual contract trading will incur the following fees:

• Transaction fee: The handling fee charged when opening and closing a position.
• Funding rate: The fee charged during the position holding period depends on the buying and selling direction of the contract.

Note: Perpetual contract trading is a high-risk investment that may result in significant losses. Before participating in perpetual contract trading, it is important to understand the risks and manage your funds properly.

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