Poloniex Contract Beginner Tutorial

Poloniex Contract Beginner Tutorial: A Comprehensive Guide to Getting Started

Introduction

Poloniex, a renowned cryptocurrency exchange, has expanded its offerings to include futures contracts trading, presenting traders with exciting opportunities to speculate on cryptocurrency price movements. This beginner's tutorial will guide you through every step of navigating the Poloniex contract platform, from account creation to executing your first trade.

Step 1: Account Registration

• Visit the Poloniex website and click on "Sign Up."
• Enter your email address, create a strong password, and agree to the terms and conditions.
• Verify your email address by clicking on the link sent to your inbox.
• Complete KYC verification to enhance account security and trading limits.

Step 2: Understanding Futures Contracts

• Futures contracts are derivative instruments that allow traders to speculate on the future price of an underlying asset without owning it.
• Each contract represents a predetermined amount of the underlying asset and has an expiry date.
• Traders can enter long (buy) or short (sell) positions based on their market sentiment.

Step 3: Funding Your Account

• Log in to your Poloniex account and navigate to the "Deposit" page.
• Select the desired cryptocurrency and generate a deposit address.
• Transfer funds from your crypto wallet or another exchange to the generated address.

Step 4: Trading Contracts

• Access the "Contracts" tab on the Poloniex website.
• Select the desired trading pair (e.g., BTC/USDT) and expiry date.
• Input the number of contracts you wish to trade and the desired price.
• Click on "Buy/Long" or "Sell/Short" to enter your position.

Step 5: Managing Risk

• Use stop-loss and take-profit orders to minimize potential losses and lock in profits.
• Monitor the contract's Maintenance Margin Ratio to avoid liquidation.
• Adequately research and understand the risks associated with futures trading.

Step 6: Closing Positions

• Close your positions by placing an opposite order (sell to close a long position or buy to close a short position).
• The profit or loss on your position will be automatically credited or debited to your account.

Step 7: Advanced Features

• Utilize leverage to amplify your trading profits and potential losses.
• Trade perpetual contracts with no expiry date for extended exposure to the market.
• Access Poloniex API to automate trading strategies and manage positions efficiently.