How to close contracts on Upbit

How to Close Contracts on Upbit

Upbit, a popular South Korean cryptocurrency exchange, offers a user-friendly platform for cryptocurrency trading, including contract trading. Contract trading allows traders to speculate on the future price of an underlying asset, such as Bitcoin or Ethereum, without actually owning the asset.

If you're new to contract trading on Upbit, or simply need a refresher, this comprehensive guide will provide you with step-by-step instructions on how to close contracts effectively.

Pre-requisites:

Before you can close contracts on Upbit, you'll need to ensure that you have the following:

1. An active Upbit account
2. A funded Upbit wallet
3. Open contract positions

Step 1: Log In to Your Upbit Account

Begin by navigating to the Upbit website and logging in to your account using your credentials. Once logged in, you'll be directed to the Upbit dashboard.

Step 2: Access the Contract Trading Interface

From the dashboard, locate the "Derivatives" tab at the top of the page and click on it. This will redirect you to the contract trading interface.

Step 3: Choose the Contract Type

Upbit offers various contract types, including perpetual contracts and futures contracts. Select the type of contract you wish to close from the options provided.

Step 4: Select the Trading Pair

Once you've chosen the contract type, you'll need to select the trading pair you want to close from the drop-down list. The trading pair represents the underlying asset and the quote currency.

Step 5: Find Your Open Positions

Locate the "Open Positions" section on the right-hand side of the interface. This section lists all your currently open contract positions. Identify the position you want to close.

Step 6: Place a Closing Order

To close a contract, you need to place a closing order. This can be done by clicking on the "Close Position" button corresponding to the position you want to close. A pop-up window will appear.

Step 7: Confirm the Order Details

In the pop-up window, review the order details, including the closing price, quantity, and fees. Ensure that all the details are correct before proceeding.

Step 8: Execute the Closing Order

Once you're satisfied with the order details, click on the "Close Position" button to execute the order. The closing order will be processed immediately and your position will be closed at the market price.

Step 9: Monitor the Order Status

You can monitor the status of your closing order in the "Order History" section of the contract trading interface. Once the order is executed successfully, you will see the closed position in your trade history.

Additional Considerations:

• Closing at Market Price: When you close a contract at market price, it means that the position is closed at the prevailing market price. This is the most common method of closing contracts.
• Closing at Limit Price: Alternatively, you can choose to close a contract at a limit price. This means that the position will be closed only if the market price reaches the specified limit price.
• Fees: Upbit charges a trading fee for closing contracts. The fee varies depending on the contract type and trading volume.
• Risk Management: Contract trading involves significant risk, and it's crucial to implement proper risk management strategies. Only trade with funds you can afford to lose.