Contract trading involves buying or selling agreements for assets at a predetermined price and quantity on a future date, allowing investors to profit from price movements. Contracts are categorized into delivery contracts (with set expiration dates) and perpetual contracts (no expiration). Traders can buy long (go long) to profit from rising prices or sell short (go short) to profit from falling prices.
App-Based Contract Trading
Step 1: Fund Transfer
- Navigate to the [Trading] tab and click Transfer.
- Select the coin (e.g., USDT for USDT-margined contracts, or the native coin for coin-margined contracts).
- Move assets from [Funding Account] to [Trading Account], enter the amount, and confirm.
Step 2: Select Contract Pair
Click the coin pair at the top-left, search for your desired asset, and choose:
Contract Type:
- Perpetual: No expiry; close manually.
- Delivery: Expires weekly, quarterly, etc.; auto-settles on expiry.
Margin Type:
- USDT-Margined: Uses USDT as collateral; profits/losses in USDT.
- Coin-Margined: Uses the traded coin as collateral; profits/losses in the same coin.
Step 3: Choose Margin Mode
- Cross Margin: All positions share collateral; profits/losses offset.
- Isolated Margin: Each position’s collateral and P&L are separate.
Step 4: Place Order
- Select [Buy/Long] (profit from price rises) or [Sell/Short] (profit from price drops).
- After opening a position, manage it under [Positions]: set take-profit/stop-loss or close manually.
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Web-Based Contract Trading
Step 1: Log In & Navigate
- Log in, click [Trade], and select [Leveraged Contracts].
- Transfer funds from [Funding Account] to [Trading Account].
Step 2: Select Contract & Pair
- Choose perpetual/delivery contracts and search for your desired coin pair.
Step 3: Place Order
- Opt for cross/isolated margin, enter order details, and execute [Buy/Long] or [Sell/Short].
- Monitor positions under [Positions] and check maintenance margin rates.
Key Notes:
- At ≤300% maintenance margin, reduce positions to avoid liquidation at ≤100%.
- Isolated Margin: Positions are independent.
- Cross Margin: Assets share collateral (converted to USD in cross-currency mode).
- With [Auto-Borrow], trade without holding USDT/coins (cross-currency mode).
FAQs
1. What’s the difference between perpetual and delivery contracts?
- Perpetual: No expiry; ideal for long-term strategies.
- Delivery: Fixed expiry; suits short-term hedging.
2. How does leverage work in contract trading?
Leverage amplifies gains/losses. E.g., 10x leverage means a 1% price move = 10% P&L.
3. What triggers liquidation?
Liquidation occurs when your maintenance margin ≤100%. Monitor rates to avoid forced closure.
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Final Tip: Always manage risk with stop-loss orders and avoid over-leveraging. Happy trading! 🚀