Tutorial sharing on perpetual contracts to help newbies get started

Perpetual contracts are derivatives that allow novices to trade the price of cryptocurrency assets through leverage. Steps to get started include: Understand the basics, choose a platform, open an account, decide on a trading direction, choose leverage, and place an order. Things to pay attention to include high risk, volatility, and understanding of terms.

Perpetual Contracts: A Beginner’s Guide

Perpetual contracts are a cryptocurrency derivative that allow traders to leverage method of trading the price of the underlying asset. For newbies, perpetual contracts can be an effective way to get started in cryptocurrency trading.

Introduction to Perpetual Contracts

• Understand the basics: Understand the concept of perpetual contracts, leverage and liquidation mechanisms.
• Choose a platform: Choose a platform that is reputable and suitable for beginners.
• Account opening: Provide personal information and pass the verification process.

Perpetual contract trading

• Determine the trading direction: Predict the fluctuation of the underlying asset price and decide to go long ( Buy) or go short (Sell).
• Choose Leverage: Choose an appropriate leverage ratio to increase the potential profit or risk of a trade.
• Place an order: Specify the trading contract quantity, price and stop loss point.

Risk Management

• Understand Stop Loss: Always use stop loss orders to limit potential losses.
• Manage Leverage: Use leverage with caution, as excessive leverage can lead to huge losses.
• Monitor the market: Pay close attention to market dynamics and adjust trading strategies in a timely manner.

Advantages suitable for novices

• Low entry threshold: Compared with spot trading, the entry capital of perpetual contracts Less demanding.
• Leverage: Leverage can magnify returns, but it also increases risk.
• Flexible Trading: Perpetual contracts allow traders to trade in any direction, regardless of market trends.

Notes

• High risk: Perpetual contract trading is extremely risky and may result in significant losses.
• Volatility: The cryptocurrency market is highly volatile, which can lead to rapid losses.
• Understand the terms: Read the contract terms of the trading platform carefully to ensure you fully understand the trading conditions.

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