How to play perpetual contract with BitFlyer

How to Play Perpetual Contract with BitFlyer: A Comprehensive Guide

Introduction

Perpetual contracts, also known as perpetual futures, are a type of derivative financial instrument that allows traders to speculate on the future price of an underlying asset without having to take ownership of the asset itself. They are similar to traditional futures contracts, but with some key differences. One of the most notable differences is that perpetual contracts do not have a fixed expiration date, meaning that they can be held indefinitely. This makes them a popular choice for traders who want to speculate on the long-term price of an asset.

BitFlyer is one of the leading cryptocurrency exchanges that offers perpetual contracts. In this guide, we will provide you with a step-by-step guide on how to play perpetual contract with BitFlyer.

Step 1: Open an Account

The first step is to open an account with BitFlyer. You can do this by visiting the BitFlyer website and clicking on the "Sign Up" button. You will need to provide your name, email address, and password. Once you have created an account, you will need to verify your email address and identity.

Step 2: Fund Your Account

Once you have verified your account, 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.

Step 3: Choose a Trading Pair

The next step is to choose a trading pair. A trading pair is simply two cryptocurrencies that are being traded against each other. For example, the BTC/USD trading pair represents the price of Bitcoin in US dollars.

Step 4: Place an Order

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

Step 5: Manage Your Risk

It is important to manage your risk when trading perpetual contracts. There are a number of different ways to do this, such as using stop-loss orders and position sizing.

Step 6: Close Your Position

When you are ready to close your position, you can simply sell your contract. The profit or loss that you make will be determined by the difference between the price at which you opened your position and the price at which you closed it.

Conclusion

Perpetual contracts are a powerful tool that can be used to speculate on the future price of an asset. However, it is important to remember that trading perpetual contracts can be risky. It is important to manage your risk and to understand the market before you start trading.