How to play Gemini u-based contracts

Traders on Gemini's U-based contracts platform can speculate on the future prices of cryptocurrencies without the risks associated with directly holding crypto-assets.

Nov 20, 2024 at 03:17 am

How to Play Gemini U-based Contracts

A U-based contract, also known as a perpetual contract, is a derivative contract where the underlying reference asset is denominated in a fiat currency. Traders who speculate on the future prices of a particular cryptocurrency use these contracts. U-based contracts are typically quoted and settled in USD, making the onboarding for new users quite simple as traders do not need to trade or hold crypto-assets directly. This also eliminates risks associated with directly holing crypto-assets such as custodial and price volatility risks.

Gemini's U-based contracts are straightforward to understand, even for novice traders. These contracts are flexible in that traders are offered an opportunity to offset risk through hedging. Even without leverage or knowledge of blockchain assets, one can still trade U-based contracts. In this guide, you will learn how to:

• Navigate Gemini's U-based contracts platform.
• Create a U-based contracts account.
• Fund your U-based contracts account.
• Place a U-based contracts order.
• Manage your U-based contracts positions.
• Close your U-based contracts position.

Setting Up Your Gemini Account

Creating a U-Based Contracts Account

1. Log in to your Gemini Account, click on "Trade," and then select "U-based Contracts."
2. Fill out the application form and submit it for review.
3. Once your account is approved, you can start trading U-based contracts.

Navigating Gemini's U-Based Contracts Platform

Gemini's U-based contracts platform is user-friendly and easy to navigate. The following are the key features of the platform:

• Order Book: The order book shows the current bid and ask prices for a particular contract.
• Chart: The chart shows the price history of a particular contract.
• Order Entry: The order entry form allows you to place orders to buy or sell contracts.
• Position Manager: The position manager allows you to view your current positions and adjust them accordingly.

Placing a U-Based Contracts Order

There are two types of orders you can place on Gemini's U-based contracts platform: market orders, and limit orders.

1. Market Order: A market order is an order that will be executed at the current market price.
2. Limit Order: A limit order is an order that will only be executed at a specified price or better.

To place an order:

1. Select the contract you want to trade.
2. Enter the order quantity.
3. Choose the order type (market or limit).
4. Click on the "Buy" or "Sell" button.

Managing Your U-Based Contracts Positions

Once you have placed an order, it will appear in the position manager. From here, you can:

• View your open positions.
• Adjust your positions.
• Close your positions.

Closing Your U-Based Contracts Position

When you are ready to close your position, you can do so by placing an order in the opposite direction. For example, if you have a long position, you can close it by placing a short order.

Once you have closed your position, it will disappear from the position manager.

Additional Resources

In addition to this guide, there are a number of other resources available to help you learn how to trade U-based contracts on Gemini.

• Gemini's U-based Contracts Learning Center: This website contains a number of articles and videos that can help you learn about U-based contracts.
• Gemini's U-based Contracts FAQ: This page answers some of the most frequently asked questions about U-based contracts on Gemini.
• Gemini's U-based Contracts Glossary: This glossary defines some of the most common terms used in U-based contracts trading.