How to operate Bitfinex perpetual contract

Perpetual contracts, with their lack of expiration dates, allow traders to maintain leveraged positions indefinitely, enabling them to speculate on price fluctuations and hedge against risks without the need for physical delivery.

Nov 11, 2024 at 01:19 am

Step 1: Understanding the Basics of Perpetual Contracts

Perpetual contracts, also known as perpetual futures, are derivative financial instruments that emulate the trading of an underlying asset without an expiry date.
They mimic the price movements of an underlying asset, such as a cryptocurrency, without requiring physical delivery of the asset.
Perpetual contracts allow traders to speculate on price fluctuations and hedge against risk, as they resettle to the spot price of the underlying asset.

Step 2: Choosing the Right Trading Pair

Bitfinex offers a wide range of perpetual contracts to trade, each based on different underlying assets like BTC, ETH, and USD.
The choice of trading pair will determine the asset you are trading against, such as BTC/USD or ETH/USDT.
Consider market liquidity, trading fees, and market volatility when selecting the most suitable trading pair for your needs.

Step 3: Setting Up a Bitfinex Account

Create a Bitfinex account and complete the KYC (Know Your Customer) verification process to enable trading.
Fund your account by depositing cryptocurrency or fiat currency through the available methods.
Ensure sufficient funds in your account to cover the initial margin and potential losses.

Step 4: Configuring Trading Parameters

Choose the "Perpetual Contracts" section from the main menu.
Select the desired trading pair and adjust the trading parameters, such as position size, leverage, and order type.
Determine the leverage multiplier carefully, as it can amplify both potential profits and losses.
Consider placing limit orders to prevent slippage and unfavorable execution prices.

Step 5: Monitoring Positions and Managing Risk

Keep track of open positions and their associated risks by using the position management tools on the platform.
Monitor price fluctuations and adjust positions as needed to manage risk and maximize profits.
Utilize stop-loss and take-profit orders to automate position closing based on predefined price levels.

Step 6: Funding and Fees

Understand that perpet

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

RAIN

$0.007852

113.00%

Trade Now
PIPPIN

$0.06097

51.96%

Trade Now
PARTI

$0.1396

42.04%

Trade Now
WAVES

$0.9141

41.69%

Trade Now
ARC

$0.04302

35.73%

Trade Now
HONEY

$0.01029

21.80%

Trade Now

Latest Crypto News

Blockchain Gaming's Quiet Revolution: Unpacking Latest Trends and Industry Insights Amidst Market Shifts
2026-02-02 06:30:01
Crypto Crossroads: Bitcoin Price Reacts to Fed Jitters Amidst Shifting Sands
2026-02-02 05:05:02
Justin Sun, Tron, Manipulation Allegations: New Bitcoin Strategy Meets Lingering Controversy
2026-02-02 05:05:02
Bitcoin Eyes $77K as Michael Saylor Reaffirms Unwavering Conviction Amidst Market Swings
2026-02-02 05:00:02
Altcoin Season on the Horizon? ETH, XRP, SOL, ADA Face Potential 184x Gains Amidst Shifting Crypto Landscape
2026-02-02 05:00:02
Bitcoin ETF News: Latest Updates Drive Investment and Market Dynamics
2026-02-02 04:50:02

Related knowledge

How to close a crypto contract position manually or automatically?

Feb 01,2026 at 11:19pm

Manual Position Closure Process1. Log into the trading platform where the contract is active and navigate to the 'Positions' or 'Open Orders' tab. 2. ...

How to understand the impact of Bitcoin ETFs on crypto contracts?

Feb 01,2026 at 04:19pm

Bitcoin ETFs and Market Liquidity1. Bitcoin ETFs introduce institutional capital directly into the spot market, increasing order book depth and reduci...

How to trade DeFi contracts during the current liquidity surge?

Feb 01,2026 at 07:00am

Understanding Liquidity Dynamics in DeFi Protocols1. Liquidity surges in DeFi are often triggered by coordinated capital inflows from yield farming in...

How to trade micro-cap crypto contracts with high growth potential?

Feb 01,2026 at 02:20pm

Understanding Micro-Cap Crypto Contracts1. Micro-cap crypto contracts refer to derivative instruments tied to tokens with market capitalizations under...

How to optimize your workspace for professional crypto contract trading?

Feb 01,2026 at 08:20pm

Hardware Infrastructure Requirements1. High-frequency crypto contract trading demands ultra-low latency execution. A dedicated workstation with a mini...

How to switch from spot trading to crypto contract trading safely?

Feb 01,2026 at 03:59pm

Understanding the Core Differences Between Spot and Contract Trading1. Spot trading involves the immediate exchange of cryptocurrencies for fiat or ot...