How to sell perpetual contracts on BitMart

To sell perpetual contracts on BitMart, create an account, fund it, find the perpetual contracts market, place a sell order with either a market or limit price, and monitor and close your position when desired, understanding the risks involved.

Nov 25, 2024 at 05:44 pm

How to Sell Perpetual Contracts on BitMart

Introduction

Perpetual contracts, also known as perpetual futures, are financial instruments that track the price of an underlying asset, such as Bitcoin or Ethereum, without having an expiry date. This allows traders to speculate on the future price of the asset without the need to take delivery of the underlying asset.

Steps to Sell Perpetual Contracts on BitMart

1. Create a BitMart Account

• Visit the BitMart website and click on "Sign Up" in the top right corner.
• Enter your email address, create a password, and enter the referral code (if you have one).
• Click on "Sign Up" and verify your email address.

2. Fund Your BitMart Account

• Log in to your BitMart account and click on "Deposit."
• Select the coin you want to deposit and follow the instructions provided.
• You can deposit funds via bank transfer, credit card, or cryptocurrency.

3. Find the Perpetual Contracts Market

• Go to the BitMart homepage and click on "Derivatives."
• In the drop-down menu, select "Perpetual."
• Find the perpetual contract for the asset you want to trade.

4. Place a Sell Order

• Click on the "Sell" button on the perpetual contract trading page.
• Enter the number of contracts you want to sell.
• Set the leverage you want to use (note that higher leverage carries higher risk).
• Click on "Sell" to place the order.

5. Monitor Your Positions and Close Them

• You can monitor your open positions in the "Positions" tab of the perpetual contract trading page.
• When you are ready to close a position, click on the "Close" button next to the position.
• Enter the number of contracts you want to close and click on "Close" to confirm.

Selling a Perpetual Contract with a Market Order

• A market order is an order to buy or sell an asset at the current market price.
• To place a market order to sell a perpetual contract, simply click on the "Sell at Market" button on the perpetual contract trading page.
• Your order will be filled at the best available market price.

Selling a Perpetual Contract with a Limit Order

• A limit order is an order to buy or sell an asset at a specified price.
• To place a limit order to sell a perpetual contract, enter the price you want to sell at and the number of contracts you want to sell.
• Your order will only be filled if the market price reaches your specified price.

Understanding the Risks of Selling Perpetual Contracts

• Perpetual contracts are leveraged instruments, which means that they carry higher risk than spot trading.
• The value of your position can fluctuate rapidly in both directions, resulting in significant profits or losses.
• It is important to understand the risks involved before trading perpetual contracts and to use proper risk management strategies.

Additional Tips

• Use stop-loss orders to limit your potential losses if the market moves against you.
• Take breaks from trading to clear your mind and avoid making emotional decisions.
• Use demo accounts to practice trading perpetual contracts before using real money.
• Always do your own research and consult with a financial advisor before making any trades.