How to play BitFlyer perpetual contracts

How to Play BitFlyer Perpetual Contracts

Perpetual contracts, also known as perpetual futures, are a type of derivative contract that allows traders to speculate on the future price of an underlying asset without owning the asset itself. Perpetual contracts are similar to traditional futures contracts, but they do not have an expiry date. This means that traders can hold perpetual contract positions for as long as they want.

BitFlyer is a Japanese cryptocurrency exchange that offers perpetual contracts on a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. BitFlyer's perpetual contracts are settled in cash, which means that traders do not need to deliver or receive the underlying asset when they close their positions.

In this guide, we will show you how to play BitFlyer perpetual contracts.

1. Open a BitFlyer Account

The first step is to open a BitFlyer account. You can do this by visiting the BitFlyer website and clicking on the "Sign Up" button. Once you have created an account, you will need to verify your identity by submitting a government-issued ID.

2. Fund Your Account

Once your account is verified, you will need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency directly from BitFlyer.

3. Find the Perpetual Contract You Want to Trade

BitFlyer offers perpetual contracts on a variety of cryptocurrencies. To find the perpetual contract you want to trade, click on the "Contracts" tab at the top of the BitFlyer website. Then, select the cryptocurrency you want to trade from the drop-down menu.

4. Place an Order

Once you have found the perpetual contract you want to trade, you can place an order. To do this, click on the "Buy" or "Sell" button. Then, enter the number of contracts you want to buy or sell and the price you want to buy or sell them at.

5. Monitor Your Position

Once you have placed an order, you can monitor your position by clicking on the "Positions" tab at the top of the BitFlyer website. Here, you can see the current price of the perpetual contract, the profit or loss on your position, and the margin required to maintain your position.

6. Close Your Position

When you are ready to close your position, click on the "Close" button next to the position you want to close. Then, enter the number of contracts you want to close and the price you want to close them at.

7. Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from BitFlyer by clicking on the "Withdraw" tab at the top of the BitFlyer website. Then, select the cryptocurrency you want to withdraw and enter the amount you want to withdraw.

Tips for Trading BitFlyer Perpetual Contracts

Here are a few tips for trading BitFlyer perpetual contracts:

• Use a stop-loss order to protect your profits. A stop-loss order is an order that automatically sells your position if the price of the perpetual contract falls below a certain level.
• Don't trade with more money than you can afford to lose. Trading perpetual contracts can be a risky business, so it is important to only trade with money that you can afford to lose.
• Do your research before you trade. It is important to understand the risks involved in trading perpetual contracts before you start trading.