How to operate Bithumb contract trading

To embark on contract trading on Bithumb's platform, traders must first establish an account, deposit funds, and familiarize themselves with the contract trading interface before placing their initial orders.

Nov 22, 2024 at 11:59 am

How to Operate Bithumb Contract Trading: A Comprehensive Guide

Understanding Contract Trading on Bithumb

Contract trading on Bithumb is a derivatives market where traders speculate on the future price movements of cryptocurrencies without actually owning the underlying assets. These contracts are standardized agreements with predefined terms, including the contract size, leverage, and expiration date.

Steps to Begin Contract Trading on Bithumb

Step 1: Create a Bithumb Account

• Visit the Bithumb website or download the mobile app.
• Click on "Sign Up" and provide your personal information.
• Complete the KYC verification process to activate your account.

Step 2: Fund Your Account

• Log in to your Bithumb account and click on "Deposit."
• Select your preferred deposit method and follow the instructions.
• Transfer funds to your Bithumb wallet to fund your trading activities.

Step 3: Navigate to the Bithumb Contract Trading Platform

• Once you have funded your account, click on "Contracts" on the top navigation bar.
• Select your desired contract type (perpetual or futures).
• Choose the cryptocurrency you want to trade (e.g., BTC, ETH, LINK).

Step 4: Choose Contract Parameters

• Contract Size: The number of cryptocurrency units represented by each contract.
• Leverage: The degree of borrowed capital used to amplify profits (e.g., 1x, 10x, 20x).
• Order Type: The type of order you want to place (e.g., market order, limit order, stop order).
• Price: The price at which you want to execute your order.
• Amount: The number of contracts you want to trade.

Step 5: Place an Order

• Once you have chosen your contract parameters, click on "Buy" or "Sell" to execute your order.
• Confirm the order details and click on "Confirm Order."
• Monitor the status of your order in the "My Orders" section.

Step 6: Manage Your Position

• After your order is executed, you can monitor the performance of your position in the "My Positions" section.
• Use risk management strategies (e.g., stop-loss orders, position sizing) to protect your capital.
• Close your position by placing an opposing order to "buy" or "sell" at the current market price.