How to open a contract cooling-off period on Crypto.com

How to open a Contract Cooling-Off Period on Crypto.comStep 1: Understand the Cooling-Off Period

Crypto.com offers a cooling-off period for perpetual contract trading, which provides a window of time for users to cancel open positions without incurring any losses. This period begins immediately after opening a position and lasts for 8 hours, after which the position is considered active and subject to market fluctuations.

Step 2: Cancellation Confirmation

To cancel a position within the cooling-off period, navigate to the "Positions" section on the Crypto.com exchange interface. Select the open position you wish to cancel and click on the "Cancel" button. The Exchange will prompt you to confirm your cancellation request.

Step 3: Cooling-Off Procedure

Once you confirm the cancellation, the position will enter a cooling-off state. The initial margin and any unrealized profits or losses will be held in a separate account during this period. The position will remain open for 8 hours, allowing you to reevaluate your trading strategy or adjust your positions as needed.

Step 4: Resetting the Cooling-Off Period

If you decide to keep the position open after the initial cooling-off period, you can reset the timer by closing and reopening the position. This will initiate a new 8-hour cooling-off period, giving you another opportunity to reconsider your trading strategy.

Step 5: Expiration of the Cooling-Off Period

If you do not manually close or reset the cooling-off period within the 8-hour window, the position will automatically become active. This means that the initial margin and any unrealized profits or losses will be moved from the separate account to your regular trading account, and the position will be subject to market fluctuations.

Step 6: Cooling-Off Period Not Applicable in Certain Scenarios

The cooling-off period does not apply to positions that are opened during extreme market volatility or when the Mark Price deviates significantly from the Index Price. In such cases, positions may be closed automatically without the benefit of a cooling-off period. It is crucial to carefully monitor market conditions and adjust positions accordingly to minimize potential risks.