What is perpetual contract trading? How to play perpetual contract trading for beginners

Perpetual contract trading is a method of trading cryptocurrency derivatives, also known as permanent contracts or indefinite contracts.

It is a new type of contract that evolved from the traditional futures contract. In the cryptocurrency trading market, there are two main contract types: forward contracts (currency-denominated contracts) and inverse contracts (cryptocurrency-standard contracts).

Compared with futures contracts, perpetual contracts do not have an expiration date or delivery date, and traders can always hold them according to their predicted direction.

Beginners who want to start trading perpetual contracts should first pay attention to the following aspects:

1. Choose a trading platform: Choose a reputable digital asset trading platform and ensure registration and identity verification. Keep your account safe.

Technical analysis and market trends are indispensable and important tools in trading. They help us study the market's price fluctuations, understand the importance of support and resistance, and provide us with a basis for making informed trading decisions.

3. Understand the role and risks of leverage, and set a reasonable leverage ratio to control risks. At the same time, the margin must be managed reasonably, usually not exceeding 10% of the total transaction volume. This avoids excessive risk exposure.

Maintaining self-discipline, formulating strict trading rules and risk management strategies, and avoiding capital losses caused by blind pursuit of high returns are the keys to maintaining discipline and effective risk management.

Choose a suitable trading strategy, such as trend following or mean reversion, based on market conditions and personal risk preferences, and make decisions with the help of market depth and analytical tools.

6. Trading currency and time range: Choose a currency with a larger market value and conduct transactions according to the time range you can afford (such as more than 4 hours) to avoid frequent opening and closing of positions.

7. Repeatedly confirm key support and resistance levels: Pay close attention to market dynamics, identify key support and resistance levels, and help determine buying and selling points.

8. Control positions: Reasonably control positions, do not invest all, but conduct transactions in batches and proportions to spread risks.

9. Control emotions and start with small-amount transactions: Maintain a peaceful mind, start with small-amount transactions, and gradually accumulate experience and improve trading skills.

10. Avoid quick success:

Perpetual contract trading is a cryptocurrency derivatives trading method, also known as a permanent contract or an indefinite contract.

Perpetual contracts are a new type of contract evolved from traditional futures contracts. Currently, in the cryptocurrency trading market, they are mainly divided into forward (currency-based contract) contracts and reverse (cryptocurrency) contracts. Standard contract) There are two types of contracts.
Compared with futures contracts, perpetual contracts do not have an expiration date or delivery date, and traders can always hold them according to their predicted direction.

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