How to open a contract cooling-off period in Deepcoin

To open a contract cooling-off period in Deepcoin, traders must ensure they meet certain prerequisites, navigate to the contract management page, select the target contract, and follow the initiation process outlined in the article.

Nov 23, 2024 at 06:03 am

How to Open a Contract Cooling-Off Period in Deepcoin

Introduction

When entering into a futures contract, traders often face the dilemma of experiencing unexpected market fluctuations that may lead to significant losses. To mitigate this risk, Deepcoin offers a contract cooling-off period, providing traders with a buffer to carefully assess their positions and make informed decisions. This comprehensive guide will thoroughly explain the step-by-step process of opening a contract cooling-off period in Deepcoin.

Step 1: Prerequisites for Opening a Contract Cooling-Off Period

Before initiating a contract cooling-off period, traders must ensure they meet the following prerequisites:

• Valid Contract: Only active, non-settled contracts are eligible for a cooling-off period.
• Acceptable Margin Level: The trader's account margin level must be within the permissible range.
• Sufficient Time Remaining: The cooling-off period must be initiated before the contract's expiration time.

Step 2: Navigating to the Contract Management Page

To access the contract management page, follow these steps:

• Log in to your Deepcoin account.
• Select the "Contracts" tab from the top menu bar.
• Click on the "Active Contracts" sub-tab.

Step 3: Identifying the Target Contract

On the contract management page, identify the contract for which you wish to open a cooling-off period. Select the contract by clicking on its corresponding row.

Step 4: Initiating the Contract Cooling-Off Period

Once the target contract is identified, follow these steps to initiate the cooling-off period:

• Click on the "Actions" button located on the right-hand side of the contract row.
• Select the "Open Cooling-Off Period" option from the drop-down menu.
• Confirm your decision by clicking on the "Open" button.

Step 5: Duration and Parameters of the Cooling-Off Period

Upon successfully initiating the cooling-off period, the contract will enter a frozen state for a predetermined period, typically 24 hours. During this interval:

• No further trading or liquidation activities can occur.
• The contract remains open and exposed to market price fluctuations.
• If the market moves in a favorable direction, the trader may opt to close the contract within the cooling-off period.

Step 6: Closing the Contract Within the Cooling-Off Period

If the market conditions improve during the cooling-off period, the trader can manually close the contract by following these steps:

• Navigate to the contract management page as described in Step 2.
• Locate the contract in the "Contracts on Cooling-Off" sub-tab.
• Click on the "Actions" button and select "Close Contract."
• Confirm your decision by clicking on the "Close" button.

Step 7: Consequences of Exceeding the Cooling-Off Period

If the trader fails to close the contract within the designated cooling-off period:

• The contract will automatically expire and be settled.
• The trader will face the consequences of their initial trading decisions.
• Additional losses or gains will be realized based on the contract's settlement price.