How to play contracts with AscendEX

Immerse yourself in the world of contract trading on AscendEX, a user-friendly platform empowering you to speculate on cryptocurrency futures like a pro.

Dec 07, 2024 at 06:45 am

A Comprehensive Guide to Contract Trading on AscendEX

Are you ready to embark on the exciting world of contract trading? AscendEX is a leading cryptocurrency exchange that offers a user-friendly platform for traders of all levels. This comprehensive guide will equip you with the knowledge and strategies to navigate the AscendEX contract trading platform like a pro.

1. Understand Contract Trading Basics

What are cryptocurrency contracts?

Cryptocurrency contracts, also known as futures contracts, are agreements between two parties to buy or sell a cryptocurrency asset at a specified price on a future date. They allow traders to speculate on the future value of cryptocurrencies without actually owning the underlying asset.

Types of contracts:

• Perpetual Contracts: These contracts have no fixed expiration date and can be held indefinitely.
• Quarterly Contracts: These contracts expire on a quarterly basis, typically at the end of March, June, September, and December.

2. How to Open an AscendEX Trading Account

1. Visit the AscendEX website and click on "Sign Up."
2. Fill in your personal details, including email address and password.
3. Complete the identity verification process by providing a valid ID document.
4. Fund your account using supported cryptocurrencies or fiat currencies.

3. Creating a Trading Strategy

Decide your trading approach:

• Trend following: Identify and trade in the direction of the prevailing market trend.
• Range trading: Exploit the fluctuations within a defined price range.
• Scalping: Profit from small price movements over short timeframes.

Risk management techniques:

• Stop-loss orders: Automatically exit trades when prices reach predefined loss levels.
• Limit orders: Execute trades at specific price targets or below loss thresholds.
• Position sizing: Determine the appropriate trade size based on your risk tolerance and account balance.

4. Exploring the AscendEX Contract Trading Interface

Dashboard:

• Overview of open positions, pending orders, and market data.

Trading tools:

• Charting with advanced technical indicators.
• Depth of Market (DOM) to assess market liquidity.
• Order book for executing trades at specific prices.

Order Types:

• Limit Order: Execute trades when the market price reaches a specific limit.
• Market Order: Execute trades at the current market price.
• Stop Order: Enter trades when the market price crosses a predefined trigger point.

5. Funding, Margin, and Liquidation

Collateral: Deposit funds into your Margin Account to support your trades. Margins allow you to trade with leverage, increasing your potential profits and risks.

Borrowing Margin: AscendEX offers margin trading, which allows you to borrow funds to amplify your trading positions.

Liquidation: If your Margin Account falls below the required margin level, your positions may be liquidated to cover losses.

6. Getting Started with a Demo Account

1. Create a demo account within the AscendEX platform.
2. Trade with virtual funds to practice strategies and familiarize yourself with the trading interface.
3. Once comfortable, you can switch to a live account for real trading.

7. Additional Tips for Contract Trading

• Manage Your Risk: Always start with small trades and gradually increase your position size as you gain experience.
• Study Market Trends: Use technical analysis to identify trading opportunities and understand market dynamics.
• Keep Informed: Stay updated with cryptocurrency news, market analysis, and platform updates to make informed decisions.
• Practice Discipline: Adhere to your trading plan and avoid emotional trading or following FOMO (fear of missing out).