How to play CoinEx contract trading

CoinEx's contract trading offers various leverage options, allowing traders to increase their potential returns while also amplifying their risk exposure.

Nov 24, 2024 at 05:43 pm

How to Play CoinEx Contract Trading: A Comprehensive Guide

Introduction

Contract trading is a popular form of leveraged trading that allows traders to speculate on the future price movements of cryptocurrencies. CoinEx, a leading cryptocurrency exchange, offers a range of contract trading options, providing traders with flexible and innovative ways to trade the crypto markets. This comprehensive guide will walk you through the steps of how to play CoinEx contract trading, from account creation to trade execution.

Step 1: Create a CoinEx Account

• Visit the official CoinEx website (www.coinex.com) and click on "Sign Up."
• Enter your email address and set a strong password.
• Verify your email address by clicking on the link sent to your mailbox.

Step 2: Verify Your Identity

• To unlock all the features of CoinEx, including contract trading, you must complete identity verification (KYC).
• Click on "Account & Security" and then "Identity Verification."
• Follow the instructions to upload your personal documents, such as passport or driver's license.

Step 3: Fund Your Account

• To trade contracts, you need to fund your CoinEx account with cryptocurrencies.
• Click on "Assets" and then "Deposit."
• Select the cryptocurrency you wish to deposit and follow the instructions to send it to your CoinEx deposit address.

Step 4: Choose a Contract

• CoinEx offers a wide range of perpetual and futures contracts with different trading pairs.
• Perpetual contracts have no expiration date, while futures contracts have a defined expiry time.
• Select the contract you want to trade based on your market analysis and trading strategy.

Step 5: Set Leverage

• Leverage allows traders to amplify their potential returns by borrowing funds from the exchange.
• CoinEx offers flexible leverage options, ranging from 1x to 125x.
• Choose the leverage level that aligns with your risk tolerance and trading experience.

Step 6: Choose a Position

• Contract trading involves taking either a long or short position.
• Going long means buying the contract in anticipation of a price increase.
• Going short means selling the contract in anticipation of a price decrease.

Step 7: Place an Order

• CoinEx provides various order types to facilitate contract trading.
• Market order: Fills your order at the best available market price.
• Limit order: Fills your order at a specific price or better.
• Stop order: Activates when the market price reaches a specified level.

Step 8: Monitor and Manage Your Trade

• Once your order is placed, monitor the market closely.
• Use the "Positions" section to track your open and closed positions.
• Adjust your leverage, stop loss, and take profit levels as needed to manage your risk exposure.

Step 9: Close Your Position

• To close your contract position, place an order in the opposite direction of your existing position.
• For example, if you are long, close the position by placing a sell order of the same size.

Tips for Successful Contract Trading on CoinEx

• Educate yourself: Learn the basics of contract trading and manage your trades with sound risk management strategies.
• Practice on a demo account: Use CoinEx's free demo account to test your strategies and gain confidence before trading live.
• Start small: Begin with small trade sizes to minimize your risk until you become more experienced.
• Diversify your portfolio: Spread your trading capital across multiple contracts to reduce your exposure to any single market.
• Set realistic goals: Avoid gambling and set achievable profit targets based on your analysis and risk tolerance.