Contract trading steps

Steps to get started with contract trading, including platform selection, account opening and deposit. The basics of contract trading, covering key concepts, risks and rewards. Contract trading operation guide, breaking down order placement, position management, and stop-profit and stop-loss.

Detailed step-by-step guide for contract trading

1. Select a contract trading platform

• Compare the features, cost, security and support offered by different platforms.
• Consider regulatory compliance, trading experience and availability of trading tools.

2. Open a trading account

• Provide proof of identity and residence.
• Set up security measures such as two-factor authentication.

3. Deposit

• Deposit via fiat or cryptocurrency.
• Consider deposit fees and processing times.

4. Basic knowledge of contract trading

• Perpetual contract: Contracts with no expiration date can last indefinitely hold.
• Quarterly Contract: A contract that expires on a specific date, with the contract value anchored to the spot price of the underlying asset.
• Margin: Collateral used to open a position. The greater the risk of holding the position, the more margin is required.
• Leverage: Borrowed funds that magnify potential gains and losses.
• Liquidation: When the margin is insufficient to cover the loss, the position is forcibly closed.

5. Contract trading operations

Place an order:

• Select the contract you want to trade (such as BTCUSDT).
• Enter the position size (e.g. 1 BTC).
• Set a margin (e.g. 10%).
• Specify leverage (e.g. 5x).
• Click the "Buy" or "Sell" button.

Manage positions:

• Monitor the profit and loss of positions.
• Adjust position size and margin to manage risk.
• Use limit, stop-loss and take-profit orders for risk management.

Close the position:

• Place an order in the opposite direction to close the position.
• Recover the remaining deposit.
• Settlement of any unrealized gains or losses.

Take profit and stop loss:

• Take profit: Preset profit level and automatically close positions to lock in profits.
• Stop loss: Preset loss level and automatically close positions to limit losses.
• Consider the profit-loss ratio and risk tolerance, and set appropriate take-profit and stop-loss levels.

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