AscendEX Contract Trading Tutorial

Embarking on the realm of contract trading requires the establishment of an AscendEX account, which involves email verification and password creation.

Nov 25, 2024 at 11:59 am

Step 1: Setting Up Your AscendEX Account

Embarking on the realm of contract trading commences with the creation of an AscendEX account. To establish an account, follow these steps:

1. Visit the AscendEX website (https://ascendex.com/).
2. Click on "Sign Up" located at the top right corner of the homepage.
3. Provide your email address and create a strong password.
4. Verify your email address by clicking on the link sent to your registered email address.

Step 2: Funding Your AscendEX Account

To initiate contract trading, you must fund your AscendEX account. AscendEX offers multiple funding methods, enabling users to deposit funds seamlessly. Here are the available options:

1. Bank Transfer: This method involves transferring funds directly from your bank account to AscendEX. It typically takes 1-3 business days for the funds to reflect in your account.
2. Credit/Debit Card: AscendEX accepts Visa and Mastercard for instant funding. However, card deposits may incur a transaction fee.
3. Cryptocurrency: AscendEX supports deposits in several cryptocurrencies, including Bitcoin, Ethereum, and USDT. Crypto deposits are credited to your account within a few minutes.

Step 3: Choosing a Contract

AscendEX offers a diverse selection of contract instruments for traders to choose from. These contracts encompass perpetual contracts, futures contracts, and options. Each contract type has its own unique characteristics and risk profile.

1. Perpetual Contracts: Perpetual contracts are perpetual futures contracts that do not have a set expiration date. They provide a cost-effective and flexible way to trade cryptocurrencies.
2. Futures Contracts: Futures contracts are standardized contracts that obligate buyers to purchase and sellers to deliver a specific amount of an underlying asset at a predetermined price and date.
3. Options Contracts: Options contracts grant holders the right, but not the obligation, to buy or sell an underlying asset at a specified price before a certain date.

Step 4: Placing an Order

Once you have selected your desired contract, you can place an order to enter or exit a trade. AscendEX offers several order types, each with its own specific parameters.

1. Market Order: A market order is executed immediately at the best available market price.
2. Limit Order: A limit order specifies the price at which you wish to buy or sell a contract.
3. Stop-Limit Order: A stop-limit order combines elements of market and limit orders, allowing traders to set a stop price and a limit price.
4. Trailing Stop Order: A trailing stop order automatically adjusts the stop price based on the movement of the underlying asset.

Step 5: Managing Your Risk

Contract trading involves inherent risks, so it's crucial to implement robust risk management strategies to safeguard your capital. Here are some essential risk management measures:

1. Setting Stop-Loss Orders: Stop-loss orders limit potential losses by automatically closing your trade if the price reaches a predefined level.
2. Position Sizing: Managing your position size is crucial to prevent excessive risk exposure. Only trade with an amount of capital you can afford to lose.
3. Hedging: Hedging involves using multiple positions to reduce overall risk. For example, a trader could establish a long position in one contract while simultaneously opening a short position in another contract.
4. Risk-Reward Ratio: Before entering a trade, it's prudent to determine the potential reward versus the potential risk. Aim for trades with a favorable risk-reward ratio.