How to sell Deepcoin perpetual contract

To sell a perpetual contract on Deepcoin, traders must first open an account, understand perpetual contracts, choose a trading pair, enter a sell order, monitor their position, and consider factors like leverage, funding rate, slippage, and risk management.

Nov 27, 2024 at 12:10 am

How to Sell Deepcoin Perpetual Contract

Selling a perpetual contract on Deepcoin involves several key steps. This guide will provide detailed instructions on how to effectively sell a perpetual contract on the platform.

Step 1: Open a Deepcoin Account

• Visit the Deepcoin website and click on "Register."
• Provide your email address, create a password, and agree to the terms and conditions.
• Verify your email address and phone number.
• Fund your account with the desired trading capital.

Step 2: Understand Perpetual Contracts

• Perpetual contracts are perpetual futures that track the price of an underlying asset without an expiry date.
• They allow traders to take positions on the future price of an asset, enabling both potential gains and losses.
• The value of a perpetual contract is determined by the underlying asset's price, leverage, and funding rate.

Step 3: Choose a Trading Pair

• Navigate to the "Trade" section of the Deepcoin platform.
• Select the desired trading pair from the available options, such as BTC/USDT or ETH/USDT.
• Determine the market or limit order type you want to execute.

Step 4: Sell a Perpetual Contract

• To sell a perpetual contract, enter the desired quantity in the "Sell" box.
• Select the appropriate leverage level, which determines the amount of potential returns and risks.
• Click on "Sell" to initiate the order.

Step 5: Monitor Your Position

• Once the order is executed, your position will be displayed in the "Active Orders" section.
• Monitor the market price fluctuations and adjust your strategy accordingly.
• Consider using stop-limit orders or take-profit targets to manage risk and secure profits.

Step 6: Close the Position

• To close your sold perpetual contract position, navigate to the "Active Positions" section.
• Click on "Close Position" and confirm your action.
• The proceeds from the sale will be credited to your account.

Additional Considerations

• Leverage: Leverage allows traders to amplify their potential returns but also increases their potential losses. Use leverage wisely and within your risk tolerance.
• Funding Rate: Perpetual contracts have a funding rate that either rewards or charges traders based on the difference between the contract price and the underlying asset price. Monitor the funding rate to avoid unnecessary costs.
• Slippage: Slippage is the difference between the expected and executed price of an order. It can occur during periods of high volatility or when using limit orders.
• Risk Management: Implement a robust risk management strategy to limit potential losses. Use stop-loss orders, position sizing, and careful leverage management to safeguard your capital.