How to play the CoinEx perpetual contract

How to Play the CoinEx Perpetual Contract

Perpetual contracts are a type of derivative instrument that allow traders to speculate on the future price of an underlying asset without actually taking ownership of the asset. They are similar to futures contracts, but there are some key differences. Perpetual contracts do not have an expiration date, so they can be held indefinitely. They also have a lower margin requirement than futures contracts, making them more accessible to retail traders.

CoinEx is one of the leading cryptocurrency exchanges that offers perpetual contracts. The CoinEx perpetual contract platform is user-friendly and offers a variety of features that make it a good choice for both experienced and novice traders.

In this guide, we will show you how to play the CoinEx perpetual contract. We will cover everything from opening an account to placing an order and managing your risk.

1. Open an Account

The first step is to open an account on the CoinEx website. Once you have created an account, you will need to verify your identity. This is a requirement for all users who want to trade perpetual contracts on CoinEx.

2. Fund Your Account

Once your account is verified, you will need to fund it with USDT. You can do this by depositing USDT from another exchange or by purchasing USDT with a credit card or debit card.

3. Choose a Trading Pair

The next step is to choose a trading pair. CoinEx offers a variety of trading pairs, including BTC/USDT, ETH/USDT, and LTC/USDT.

4. Place an Order

Once you have chosen a trading pair, you can place an order. There are two types of orders: market orders and limit orders. Market orders are executed immediately at the current market price. Limit orders are executed only when the price reaches a specified level.

5. Manage Your Risk

Perpetual contracts are a leveraged product, which means that they can amplify both your profits and your losses. It is important to manage your risk carefully when trading perpetual contracts. One way to do this is to use a stop-loss order. A stop-loss order will automatically close your position if the price moves against you by a certain amount.

6. Close Your Position

When you are ready to close your position, you can do so by placing a closing order. A closing order is the opposite of an opening order. It will sell your position if you are long or buy your position if you are short.

7. Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from CoinEx. You can withdraw your funds to another exchange or to a bank account.

Conclusion

Perpetual contracts are a powerful tool that can be used to speculate on the future price of an underlying asset. However, it is important to understand the risks involved in trading perpetual contracts before you start trading. By following the steps outlined in this guide, you can help to mitigate your risk and increase your chances of success.