How to operate BigONE contract

By understanding the fundamentals of contract trading and following the steps outlined in this guide, you can effectively operate BigONE's contract trading platform, capitalize on market trends, and mitigate potential risks.

Nov 26, 2024 at 04:26 am

How to Operate BigONE Contract

A Comprehensive Guide to Contract Trading on BigONE Exchange

Introduction

Contract trading involves buying and selling contracts that represent the underlying asset without actually owning the asset itself. BigONE Exchange offers a user-friendly and advanced platform for contract trading, enabling traders to capitalize on both bullish and bearish market trends. This comprehensive guide will provide a step-by-step breakdown of how to operate BigONE contract.

Step 1: Create an Account and Fund Your Wallet

a. Visit the BigONE website and create an account by providing your email address or mobile number.

b. Complete the KYC verification process to enhance your account security and trading limits.

c. Deposit funds into your BigONE wallet by transferring cryptocurrency assets from an external wallet or purchasing cryptocurrency directly through the exchange.

Step 2: Learn Contract Trading Fundamentals

a. Understand the concept of futures contracts and how they differ from spot trading.

b. Familiarize yourself with key terms such as margin, leverage, long and short positions.

c. Practice risk management techniques, including setting stop-loss and take-profit orders.

Step 3: Choose the Right Contract

a. BigONE offers a wide range of contract markets representing various underlying assets.

b. Consider factors such as market volatility, trading volume, and your trading strategy when selecting a contract.

c. Choose a contract with appropriate leverage that aligns with your risk tolerance and trading goals.

Step 4: Open a Contract Position

a. Navigate to the contract trading interface and select the desired contract.

b. Determine the contract price, quantity, and leverage level.

c. Click "Buy/Long" to enter a long position (leveraged bet on price increase) or "Sell/Short" for a short position (leveraged bet on price decrease).

Step 5: Risk Management

a. Monitor your position regularly by tracking its mark price and unrealized profit or loss.

b. Adjust your position size and leverage based on risk appetite and market conditions.

c. Utilize stop-loss and take-profit orders to limit potential losses and secure profits.

Step 6: Close a Contract Position

a. To close a long position, execute a "Sell/Short" order for the equivalent quantity of contracts.

b. To close a short position, execute a "Buy/Long" order for the equivalent quantity of contracts.

c. The closed position will be settled at the current market price, and the profit or loss will be credited to your account.

Step 7: Margin Maintenance

a. Contract trading involves borrowing funds from the exchange to increase trading capacity beyond the available account balance.

b. The exchange requires a minimum margin (collateral) to maintain open positions.

c. Additional funds may be required to maintain a sufficient margin level in case of adverse price movements.

Step 8: Avoid Liquidation

a. Liquidation occurs when the account's margin balance falls below the minimum required margin level.

b. The exchange will automatically close all open positions and sell off the underlying assets to cover the margin deficit.

c. Minimizing risk and monitoring margin levels is crucial to prevent liquidation and potential financial losses.