How to open contract trading on Poloniex

To open a contract trading account on Poloniex, create an account, verify your identity, fund your account, select a trading pair, place an order, monitor your position, and close it when desired.

Nov 27, 2024 at 01:14 pm

How to Open Contract Trading on Poloniex

Poloniex, one of the leading cryptocurrency exchanges, offers contract trading, which allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Contract trading involves using leverage, which can magnify both profits and losses.

Opening a contract trading account on Poloniex is a relatively straightforward process, but it is crucial to understand the risks involved before proceeding.

Step 1: Create a Poloniex Account

If you do not already have a Poloniex account, create one by visiting the Poloniex homepage and clicking "Sign Up." Enter your email address, create a password, and agree to the terms of service.

Step 2: Verify Your Identity

Poloniex requires users to verify their identity to comply with anti-money laundering and know-your-customer (KYC) regulations. This process involves providing documents such as a government-issued ID and a proof of residence.

Step 3: Fund Your Account

To open a contract trading account, you need to fund your Poloniex account with either cryptocurrency or fiat currency. You can deposit cryptocurrency by generating a deposit address from the Poloniex website and transferring funds from another exchange or wallet. Alternatively, you can purchase cryptocurrency directly through Poloniex using a credit card or bank transfer.

Step 4: Open a Contract Trading Account

Once your Poloniex account is funded, you can open a contract trading account by navigating to the "Trading" tab and selecting "Crypto Futures." Click the "Open Account" button and agree to the terms and conditions.

Step 5: Select a Trading Pair

Poloniex offers contract trading for a wide range of cryptocurrency pairs, including BTC/USDT, ETH/USDT, and many others. Select the trading pair you wish to trade by clicking on it from the list of available pairs.

Step 6: Place an Order

To place a contract trading order, specify the following parameters:

• Order Type: Choose between a "Limit Order," which allows you to set a specific price at which you want the order to execute, and a "Market Order," which executes immediately at the current market price.
• Order Side: Indicate whether you want to buy (long) or sell (short) the contract.
• Quantity: Enter the number of contracts you want to buy or sell.
• Leverage: Select the amount of leverage you want to apply to your trade. Leverage can magnify both profits and losses, so use it wisely.

Step 7: Monitor Your Position

Once you have placed an order, you can monitor its status by navigating to the "My Positions" tab in the "Crypto Futures" section. Here you can view the unrealized profit/loss, the liquidation price, and other relevant information.

Step 8: Close Your Position

To close your position, navigate to the "My Positions" tab and click on the "Close" button next to the position you want to close. You can either close the position at the current market price or at a limit price that you specify.