How to close a Poloniex contract

How to Close a Poloniex Contract

Closing a Poloniex contract involves several steps that ensure a smooth and efficient process. This guide will provide a comprehensive walkthrough of the steps involved, addressing potential questions and offering detailed explanations.

Step 1: Understanding Contract Types

Poloniex offers two types of contracts: futures and perpetuals.

• Futures contracts expire on a specified date and have a fixed settlement price. They are typically used for hedging or speculating on price movements.
• Perpetual contracts do not have an expiration date and settle at the current market price. They are often used for trading strategies that benefit from leverage and market volatility.

Step 2: Identifying the Contract to Close

Before closing a contract, you must identify the specific contract you wish to close. This can be done by navigating to the "Contracts" section of the Poloniex trading platform and selecting the appropriate contract type.

• Futures contracts can be found under the "Futures" tab, while perpetual contracts can be found under the "Perpetuals" tab.
• Once you have identified the contract, click on it to view its details.

Step 3: Determining the Close Position

To close a contract, you need to determine the close position. This refers to the opposite position you will take to offset the existing contract and exit the market.

• If you have an open long position, you need to place a short position of the same size.
• If you have an open short position, you need to place a long position of the same size.

Step 4: Placing the Close Order

To place the close order, navigate to the "Open Orders" section of the Poloniex trading platform.

• Select the order type. For closing a contract, you will typically use a "Market Order" to execute the trade at the current market price.
• Enter the close position size. This should match the size of your existing contract.
• Select the close order price. For a market order, this field will be automatically filled with the current market price.
• Click on the "Place Order" button to submit the close order.

Step 5: Monitoring the Close Order

Once you submit the close order, it will be placed in the order book and will be executed when the market price reaches the specified price.

• You can monitor the status of your close order in the "Open Orders" section.
• Once the close order has been executed, it will be removed from the order book, and your contract will be closed.

Step 6: Closing a Contract with Multiple Positions

If you have multiple positions in the same contract, you can close them all simultaneously using a "Close All" order.

• To place a close all order, navigate to the "Positions" section of the Poloniex trading platform.
• Select the contract for which you want to close all positions.
• Click on the "Close All" button to submit the close order.

Step 7: Finalizing the Contract Closure

Once the close order has been executed, your contract will be closed, and the profit or loss will be added to your trading account.

• You can review your trading history in the "Trade History" section to confirm the closure of the contract.
• Ensure that you have sufficient funds in your trading account to cover any potential losses from the contract closure.