How to play the AscendEX perpetual contract

Before trading perpetual contracts on AscendEX, users must open an account, choose a contract based on the underlying asset, leverage, and funding rate, then place and manage orders, including closing positions to finalize trades.

Nov 26, 2024 at 05:27 am

How to Play the AscendEX Perpetual Contract

Introduction

Perpetual contracts, often known as perpetual futures or inverse swaps, are a type of derivative instrument that allows traders to speculate on the future price of a cryptocurrency without having to take delivery of the underlying asset. They are similar to traditional futures contracts but do not have an expiry date, meaning that they can be held indefinitely.

Step 1: Open an Account on AscendEX

To begin trading perpetual contracts on AscendEX, you will need to create an account. This is a straightforward process that can be completed in a few minutes. Once you have created an account, you will need to fund it with cryptocurrency. You can do this by depositing funds from another wallet or by purchasing cryptocurrency directly from AscendEX.

Step 2: Choose a Perpetual Contract

Once your account is funded, you can begin choosing a perpetual contract to trade. AscendEX offers a wide variety of perpetual contracts, including contracts for Bitcoin, Ethereum, Litecoin, and many other cryptocurrencies. When choosing a contract, it is important to consider the following factors:

• The underlying asset: The cryptocurrency that the contract is based on.
• The leverage: The amount of leverage that you want to use. Leverage allows you to amplify your profits, but it can also magnify your losses.
• The funding rate: The rate at which you will be charged or paid for holding the contract.

Step 3: Place an Order

Once you have chosen a perpetual contract, you can place an order. AscendEX offers a variety of order types, including market orders, limit orders, and stop orders.

• Market orders: Market orders are executed immediately at the current market price.
• Limit orders: Limit orders allow you to specify the price at which you want your order to be executed.
• Stop orders: Stop orders allow you to specify a price at which you want your order to be triggered.

Step 4: Manage Your Position

Once you have placed an order, you will need to manage your position. This includes monitoring the price of the underlying asset and adjusting your position accordingly. You can also use stop-loss orders to limit your potential losses.

Step 5: Close Your Position

When you are ready to close your position, you can place a closing order. Closing orders are executed immediately at the current market price. Once your closing order has been executed, your position will be closed and you will receive the profit or loss from your trade.

Tips for Trading Perpetual Contracts

Here are a few tips for trading perpetual contracts:

• Do your research: Before you start trading perpetual contracts, it is important to do your research and understand how they work. This includes understanding the risks involved.
• Start small: When you are first starting out, it is a good idea to start trading with a small amount of capital. This will help you to learn how to trade without risking too much money.
• Use leverage wisely: Leverage can be a powerful tool, but it can also amplify your losses. It is important to use leverage carefully and only when you are comfortable with the risks involved.
• Manage your risk: Risk management is an important aspect of trading perpetual contracts. This includes using stop-loss orders to limit your potential losses.
• Don't overtrade: One of the biggest mistakes that traders make is overtrading. This is when you trade too often or with too much capital. Overtrading can lead to losses.