How to trade ETH perpetuals on Bitstamp?

ETH perpetual contracts on Bitstamp let you trade Ethereum with up to 50x leverage—amplifying both gains and losses—so always manage risk carefully.

Jul 23, 2025 at 03:28 am

Understanding ETH Perpetual Contracts

ETH perpetual contracts are derivative products that allow traders to speculate on the price of Ethereum without owning the underlying asset. Unlike traditional futures, these contracts do not have an expiry date, enabling traders to hold positions indefinitely—provided they meet margin requirements. Bitstamp offers ETH perpetuals with leverage, meaning you can control a larger position using less capital. This introduces both opportunity and risk. Traders must understand that leverage amplifies both gains and losses, and managing risk is essential when trading perpetuals.

Setting Up Your Bitstamp Account

Before trading ETH perpetuals, ensure your Bitstamp account is fully verified. Navigate to your Bitstamp profile and complete KYC (Know Your Customer) verification, which includes submitting a government-issued ID and proof of address. Once verified:

• Enable two-factor authentication (2FA) for added security.
• Deposit funds into your Bitstamp wallet. You can deposit ETH or stablecoins like USDC or USDT, which are typically used as collateral for perpetual contracts.
• Go to the "Derivatives" section in your dashboard to access the ETH perpetual market.
  

  Navigating the Perpetual Trading Interface

  
  After entering the derivatives section, locate the ETH/USDT or ETH/USD perpetual contract. The interface displays several key elements:
• Order book: Shows real-time bids and asks, helping you gauge market depth.
• Funding rate: This is paid or received every 8 hours depending on whether you’re long or short. Positive funding means longs pay shorts; negative means the reverse.
• Mark price: Prevents manipulation by using a fair price derived from multiple spot exchanges.
• Leverage selector: Adjust leverage from 1x to 50x. Higher leverage increases liquidation risk, so beginners should start with 5x or lower.
  

  Placing Your First ETH Perpetual Trade

  
  To open a position:
• Choose between “Long” (buy) if you expect ETH to rise, or “Short” (sell) if you expect it to fall.
• Select your order type: Limit (set your price) or Market (execute immediately at current price).
• Enter the contract size (e.g., 0.1 ETH) or USD value.
• Set your leverage using the slider—always confirm this before submitting.
• Review liquidation price displayed on the screen—it’s the price at which your position will be automatically closed if the market moves against you.
• Click “Open Position” to execute.
  

  For example, if ETH is at $3,000 and you open a 0.1 ETH long position at 10x leverage:

  • Your margin required = (0.1 × $3,000) / 10 = $300.
  • If ETH drops to $2,700, you could face liquidation depending on fees and funding.

  Managing Risk and Using Stop-Loss Orders

  
  Risk management is critical in perpetual trading. Bitstamp allows you to set stop-loss and take-profit orders directly when placing a trade or after opening a position:
• Click “Edit” on your open position.
• Set a stop-loss price to limit downside. For instance, if ETH is at $3,000, a stop-loss at $2,850 caps your loss at 5%.
• Set a take-profit to lock in gains—e.g., $3,300 for a 10% profit.
• Monitor your margin balance continuously. If it falls below the maintenance margin, liquidation is triggered.
• Always avoid over-leveraging—even small price movements can lead to significant losses.
  

  Funding Rate and Its Impact on Positions

  
  Funding rates are exchanged between long and short traders every 8 hours (00:00, 08:00, 16:00 UTC). These rates are based on the difference between the perpetual contract price and the spot price:
• If the funding rate is +0.01%, longs pay 0.01% of their position value to shorts.
• If it’s -0.01%, shorts pay longs.
• Funding payments are automatic and deducted from your available balance.
• Holding a position for multiple funding intervals means you’ll pay or receive multiple times—this can significantly affect profitability over time.
  

  FAQs

  Q: Can I trade ETH perpetuals on Bitstamp with less than $100?
  
  Yes, but only with low leverage and small position sizes. For example, with 5x leverage and $50, you can open a 0.017 ETH position if ETH is at $3,000. Always ensure your margin exceeds the maintenance requirement to avoid liquidation.

  Q: What happens if my ETH perpetual position gets liquidated?
  
  Bitstamp automatically closes your position when your margin balance falls below the maintenance threshold. You lose the initial margin used, and any remaining balance (if any) stays in your account. Liquidation is not a debt—you don’t owe more than your deposited margin.

  Q: How do I check my funding payments on Bitstamp?
  
  Go to “Account History” > “Funding Payments” in the derivatives section. Each entry shows the time, asset, direction (long/short), and amount paid or received. This is crucial for tracking ongoing costs or earnings from holding positions.

  Q: Is there a minimum holding period for ETH perpetuals on Bitstamp?
  
  No. You can open and close positions at any time. However, if you hold past a funding interval (every 8 hours), you’ll be charged or credited based on the prevailing rate. Short-term traders should monitor funding to avoid unexpected costs.