Contract Trading Operation Tutorial

Contract trading can maximize profits, but it also increases the risk of losses, which is fundamentally different from spot trading. This article aims to help you understand the detailed steps of contract trading and help you start a new journey to increase your investment returns by a hundred times.

 

Step 1: Select a contract trading pair

After entering the contract trading page, the BTCUSDT perpetual contract is displayed by default (upper left position). You can click on this trading pair and select other cryptocurrency trading pairs, such as ETHUSDT, SOLUSDT, etc.

Step 2: Select full position or single position mode

Choosing a margin model is a critical step in contract trading.

Full Margin Mode : All available funds will be used for all trades.

Isolated position mode : The risk is limited to the available funds in the isolated position account, and the maximum loss is limited to the isolated position margin account. The full position mode is suitable for those with high risk preferences, and the isolated position mode is more secure.

Step 3: Set leverage

To the right of the full position/isolated position option, there is a 10x logo. Click it to select the leverage multiple. Taking BTCUSDT contract as an example, the leverage multiple ranges from 1 to 125 times. For the first contract transaction, it is recommended to control the leverage multiple to around 10 times.

Step 4: Select Order Type

As a first-time trader, you only need to open a position. There are many options for limit orders, which determine the purchase cost and time. Here are three common order types:

Limit Order : Place an order in the order book at a set price. You decide the limit price, and the trade will only be executed if the market reaches that price (or higher).

Market order : The system selects the price that is most likely to be executed to place the order, and the unexecuted part will continue to be placed at the latest easily executed price.

Planned order : When the price reaches the trigger point, place an order according to the set quantity and execution price. Assets are not frozen before the trigger. Suitable for users who insist on buying or selling at a specific price point.

Step 5: Set up take profit and stop loss and buy and sell

It is recommended that new users set up stop-profit and stop-loss to help control risks and understand the impact of leverage on capital accounts. Based on your market judgment:

Buy : Select when you are bullish on a cryptocurrency.

Sell : Select when you are bearish on a cryptocurrency.

By following the above steps, you can start contract trading. Choosing trading strategies and tools appropriately will help you better manage risks and increase returns.