Bitfinex perpetual contract stop profit and stop loss tutorial

Bitfinex Perpetual Contract Stop Profit and Stop Loss Tutorial

Perpetual contracts, also known as perpetual futures or inverse swaps, are a type of derivative financial instrument that allow traders to speculate on the future price of an underlying asset, such as Bitcoin or Ethereum, without having to take ownership of the asset itself.

One of the key features of perpetual contracts is that they offer leverage, which allows traders to increase their potential profits (and losses) by borrowing capital from the exchange. However, using leverage also increases the risk of liquidation, which occurs when the trader's losses exceed their account balance.

To manage risk, traders can use stop-loss and stop-profit orders. A stop-loss order is an order to sell (or buy) an asset at a specified price when the market price reaches that level. A stop-profit order is an order to sell (or buy) an asset at a specified price when the market price reaches that level.

In this tutorial, we will show you how to place a stop-loss and stop-profit order on Bitfinex, one of the world's leading cryptocurrency exchanges.

Step 1: Open a Bitfinex Account

If you don't already have a Bitfinex account, you will need to create one. To do this, visit the Bitfinex website and click on the "Sign Up" button.

Step 2: Fund Your Account

Once you have created an account, you will need to fund it with cryptocurrency. To do this, click on the "Deposits" tab and select the cryptocurrency you want to deposit.

Step 3: Find the Perpetual Contract Market

Once your account is funded, you can find the perpetual contract market by clicking on the "Trading" tab and selecting "Perpetuals."

Step 4: Choose the Underlying Asset

Once you are in the perpetual contract market, you will need to choose the underlying asset that you want to trade. To do this, click on the "Underlying" dropdown menu and select the asset you want to trade.

Step 5: Place a Stop-Loss Order

To place a stop-loss order, click on the "Stop" tab and select "Stop Loss." Then, enter the price at which you want to sell the asset and the amount of the asset you want to sell.

Step 6: Place a Stop-Profit Order

To place a stop-profit order, click on the "Stop" tab and select "Stop Profit." Then, enter the price at which you want to sell the asset and the amount of the asset you want to sell.

Step 7: Monitor Your Orders

Once you have placed your stop-loss and stop-profit orders, you can monitor them by clicking on the "Orders" tab.