How ProBit Global contracts trade

On ProBit Global, contracts trading, a form of leverage trading, allows traders to amplify potential profits and risks by speculating on the price movements of cryptocurrencies.

Dec 06, 2024 at 11:58 am

Understanding Contracts Trading on ProBit Global

ProBit Global is a renowned cryptocurrency exchange that offers a diverse range of trading options, including contracts trading. This article delves into the intricacies of contracts trading on ProBit Global, providing a comprehensive guide for both seasoned traders and those new to the concept.

What is Contracts Trading on ProBit Global?

Contracts trading, also known as perpetual contracts, allows traders to speculate on the price movements of an underlying asset without actually owning it. These contracts are leveraged instruments, enabling traders to amplify their potential profits while also magnifying their risks.

How to Trade Contracts on ProBit Global

1. Create an Account:

• Visit the ProBit Global website and register for an account.
• Complete the KYC (Know Your Customer) verification process to unlock all trading features.

2. Fund Your Account:

• Deposit cryptocurrency or fiat currency into your ProBit Global account.
• You can use a variety of payment methods, including credit/debit cards, bank transfers, and cryptocurrencies.

3. Go to the Contracts Trading Interface:

• Navigate to the "Contracts" tab on the ProBit Global platform.
• Select the contract you wish to trade, such as BTC/USDT Perpetual Contract.

4. Choose Your Trading Parameters:

• Determine the size of your contract position (e.g., number of contracts).
• Set your leverage level, which amplifies your profit potential and risk (e.g., 20x leverage).
• Specify whether you want to open a long position (bet on a price increase) or a short position (bet on a price decrease).

5. Place Your Order:

• Review your order parameters and click "Buy" or "Sell" to enter the trade.
• Your order will be executed and added to your open positions.

6. Manage Your Position:

• Monitor your open contracts and make adjustments as needed.
• Use the "Close" button to exit your position and realize your profits or losses.

Understanding Key Contract Trading Concepts

1. Leverage:

• Leverage magnifies both your profit potential and risk.
• Higher leverage increases your exposure to price fluctuations, potentially leading to larger gains or losses.

2. Liquidation:

• Liquidation occurs when your contract position reaches a certain loss threshold called the "Liquidation Price."
• At this point, your entire position will be closed, and your losses will be realized.

3. Funding Rate:

• The funding rate is a fee or premium that is paid by traders on one side of the contract to traders on the opposite side.
• It ensures that the contract price remains aligned with the spot price of the underlying asset.

4. Mark Price:

• The mark price is a weighted average of the prices from multiple exchanges.
• It is used as a reference point for determining the liquidation price and calculating profits/losses.

5. Social Trading:

• ProBit Global offers a social trading feature where you can follow experienced traders and copy their trades.
• This can be a great way for beginners to learn from professional traders.

Conclusion

Contracts trading on ProBit Global provides traders with a powerful tool to speculate on the price movements of cryptocurrencies. By understanding the key concepts and following the steps outlined in this guide, traders can navigate the contracts market effectively and make informed decisions. However, it is crucial to proceed with caution as contracts trading involves significant risk and should only be undertaken by those with a thorough understanding of the underlying principles.