How to operate BingX perpetual contract

BingX offers perpetual contracts on various cryptocurrencies, allowing traders to experience continuous exposure to underlying assets with leverage capabilities and without an expiry date.

Nov 24, 2024 at 10:18 pm

How to Operate BingX Perpetual Contract

Perpetual contracts, also known as perpetual futures, are financial instruments derived from traditional futures contracts without an expiry date. They provide traders with continuous exposure to the underlying asset, allowing for both long and short positions. BingX, a leading cryptocurrency exchange platform, offers perpetual contracts on various cryptocurrencies, including Bitcoin, Ethereum, and others.

Steps to Operate BingX Perpetual Contract

1. Create an Account on BingX

Visit the BingX website or download the mobile app to create an account. Provide your personal information, including name, email address, and create a strong password. Verify your account by completing the KYC process.

2. Fund Your Account

To trade perpetual contracts, you will need to fund your BingX account. You can deposit funds through bank transfer, credit/debit cards, or cryptocurrencies. Choose your preferred deposit method and follow the instructions provided by BingX.

3. Select the Perpetual Contract You Want to Trade

Once your account is funded, hover over the "Derivatives" tab on the BingX dashboard and select "Perpetual." Choose the perpetual contract you wish to trade based on the underlying asset, such as "BTCUSDT" or "ETHUSDT."

4. Understand the Contract Parameters

Before placing an order, it's important to understand the contract parameters. These include the contract size, the margin required, the leverage levels, and the funding rate. Carefully review these parameters to ensure they align with your trading strategy.

5. Place an Order

Once you have selected the contract, you can place an order to buy (long) or sell (short) the contract. Specify the quantity, which represents the notional value of the contract, and the leverage you wish to use. Choose the order type, such as market order or limit order.

6. Manage Your Position

After placing an order, your position will be displayed in the "Positions" tab. You can monitor the unrealized profit/loss, adjust your leverage, or close the position through this interface.

7. Calculate Fees and Margin

BingX charges a maker fee for providing liquidity and a taker fee for executing orders. The fee schedule varies depending on the contract and can be found on the platform. The margin requirement is the minimum amount of funds required to maintain your position. If the margin falls below the required level, a margin call may be triggered.

8. Understand Funding Rate and Funding Settlements

Perpetual contracts incorporate a funding mechanism to ensure the price of the contract tracks the underlying asset price. The funding rate represents the interest rate paid or received for holding a position. Funding settlements occur every eight hours, and traders with a long position usually pay the funding rate, while traders with a short position usually receive the funding rate.

9. Manage Risk Carefully

Trading perpetual contracts involves significant risk. Use appropriate risk management strategies such as stop-loss orders, position sizing, and prudent leverage. Monitor market conditions and adjust your trading strategy accordingly.