What are the trading methods of perpetual contracts?

What are the Trading Methods of Perpetual Contracts?

1. Spot Trading:Perpetual contracts can be traded on spot markets, where traders buy and sell contracts for immediate settlement at the current spot price.

2. Margin Trading:Traders can use leverage in perpetual contract trading by borrowing funds from an exchange. This allows them to control larger positions with a smaller amount of capital.

3. Markets:Perpetual contracts are traded on both centralized exchanges (e.g., OKX, Binance) and decentralized exchanges (e.g., Uniswap, SushiSwap).

4. Hedging:Perpetual contracts can be used for hedging purposes by locking in future prices. This can protect traders against adverse price movements.

5. Arbitrage:Traders can engage in arbitrage by simultaneously buying and selling perpetual contracts on different exchanges to profit from price discrepancies.

6. Scalping:Scalping involves taking small profits from short-term price movements.

7. Range Trading:Range traders bet on the price staying within a specific trading band. They profit by buying near the lower band and selling near the upper band.

8. Breakout Trading:Breakout traders identify and trade based on price breakouts from support and resistance levels.

9. Ichimoku Trading:Ichimoku trading involves using a technical indicator that combines multiple moving averages and oscillators to help traders make trading decisions.

10. Candlestick Patterns:Traders can use candlestick patterns to identify potential trading opportunities. Some popular patterns include bullish engulfing, bearish engulfing, and harami patterns.