How to trade perpetual contract at KuCoin

To trade perpetual contracts on KuCoin, you'll need to first set up an account, fund it, choose a trading pair, set your trading parameters, place an order, monitor your open positions, and close your position when you're ready.

Nov 08, 2024 at 04:24 pm

How to Trade Perpetual Contract at KuCoin

Step 1: Open an Account on KuCoin

To begin trading perpetual contracts on KuCoin, you'll need to first create an account. Visit the KuCoin website, click on "Sign Up," and enter your email address and a password. For enhanced security measures, enable two-factor authentication (2FA) via Google Authenticator or SMS.

Step 2: Fund Your Account

Once you have an account, you need to deposit funds to start trading. KuCoin supports a wide range of cryptocurrencies for deposits, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Choose your preferred deposit method, such as credit card or bank transfer, and follow the instructions provided on the platform.

Step 3: Navigate to the Perpetual Contract Market

After your account is funded, head over to the "Futures" section of the KuCoin website. Select "Perpetual" from the menu to access the perpetual contract market. You'll be presented with a list of all available perpetual contract pairs.

Step 4: Choose a Trading Pair

Choose the trading pair you want to trade, such as BTC/USDT or ETH/USDT. Each pair represents the underlying asset (e.g., BTC) that you are speculating on, while the quote asset (e.g., USDT) is the currency used for trading.

Step 5: Set Your Trading Parameters

Once you have chosen your trading pair, you can set your trading parameters. This includes:

• Leverage: Adjust the leverage ratio to increase your potential profits and risks. Higher leverage amplifies your trading size but also increases your potential losses.
• Order Type: Choose from various order types, such as market orders (immediate execution at current market price), limit orders (placed at a specific price), and stop orders (triggered when a specified price is reached).
• Position Size: Determine the amount of the underlying asset (e.g., BTC) you want to trade. Remember that your position size is multiplied by the leverage factor to calculate your total leverage position.

Step 6: Place an Order

After setting your trading parameters, place your order by clicking on the "Buy/Long" or "Sell/Short" button. The order will be submitted to the KuCoin exchange and executed based on the specified order type and parameters.

Step 7: Monitor Your Open Positions

Once you place an order, it will appear in the "Open Orders" section. You can monitor the status of your order and adjust or close it as needed. Pay attention to the price action of the underlying asset and your profit/loss (P/L) to make informed trading decisions.

Step 8: Close Your Position

When you want to exit your trade, close your position by placing an opposite order. For example, if you bought BTC using leverage, you would close the position by selling the same amount of BTC. Monitor the price action and P/L to find the best time to close your position.

Step 9: Manage Your Risk

Risk management is crucial in perpetual contract trading. Implement stop-loss and take-profit orders, and use appropriate leverage to limit your potential losses. Additionally, monitor your trading performance and adjust your strategies accordingly.