How to play ProBit Global coin-margined contract

Coin-margined contracts on ProBit Global offer traders higher leverage and reduced counterparty risk for speculating on the price of cryptocurrencies like Bitcoin.

Nov 30, 2024 at 08:57 pm

How to Play ProBit Global Coin-Margined Contract

Understanding Coin-Margined Contracts

Coin-margined contracts, also known as inverse perpetual contracts, are financial instruments that allow traders to speculate on the future price of an underlying asset, such as Bitcoin, using borrowed funds. Unlike traditional perpetual contracts, coin-margined contracts are settled in the same currency as the underlying asset, offering several advantages to traders.

Benefits of Coin-Margined Contracts

• Higher Leverage: Coin-margined contracts provide higher leverage than traditional perpetual contracts, allowing traders to amplify their potential gains.
• Reduced Counterparty Risk: Settlements occur directly between traders, eliminating the risk associated with intermediaries.
• Flexibility: Coin-margined contracts offer both long and short positions, allowing traders to speculate on price movements in both directions.

Step-by-Step Guide to Trading Coin-Margined Contracts on ProBit Global

1. Create an Account and Verify Identity

Register on ProBit Global website and complete your identity verification to activate your account.

2. Fund Your Account

Deposit funds to your ProBit Global account to commence trading. You can use various methods, including cryptocurrencies or fiat currency.

3. Navigate to Coin-Margined Contracts

Navigate to the ProBit Global trading interface and select "Contracts" from the menu on the left. Choose "Coin-Margined Contracts" to access the contract trading platform.

4. Choose Your Trading Pair

Select the trading pair you wish to trade, such as BTC/USDT. The trading pair indicates the underlying asset (BTC) and the settlement currency (USDT).

5. Understand Contract Specifications

Carefully review the contract specifications, including the minimum margin, contract value, and tick size. This information affects your risk management and potential profits.

6. Place an Order

Decide whether you want to take a long or short position and specify the contract quantity you want to trade. Input the limit price, market price, or stop price depending on your trading strategy.

7. Monitor Your Position

Once your order is executed, it will appear in your "Open Orders" section. Regularly monitor your position, considering market fluctuations, risk tolerance, and profit targets.

8. Close Your Position

When you are ready to close your position, place an opposite order to the one you opened. For example, if you went long, you would place a short order. The contract will be closed when the orders are matched.

9. Calculate Your Profit or Loss

Your profit or loss will be automatically calculated based on the change in the contract price and the contract quantity. The settlement will occur in the same currency as the contract, resulting in either a gain or a loss.

Additional Tips for Trading Coin-Margined Contracts

• Control Your Risk: Always trade within your risk tolerance and never wager more than you can afford to lose. Leverage can amplify both profits and losses.
• Use Technical Analysis: Utilize technical indicators, charting tools, and price patterns to enhance your decision-making.
• Set Stop-Loss and Take-Profit Orders: These orders automatically close your position when certain price levels are reached, protecting you from significant losses and locking in profits.
• Manage Your Margin: Monitor your margin level and ensure it is sufficient to support your open positions. Insufficient margin can result in a margin call and forced liquidation of your position.
• Educate Yourself: Continuously research and educate yourself about coin-margined contracts, cryptocurrency markets, and trading strategies to improve your understanding and decision-making.