Tutorial on how to play Poloniex contracts

Tutorial on How to Play Poloniex ContractsIntroduction

Poloniex is a cryptocurrency exchange that offers a variety of trading options, including contracts. Contracts are a type of derivative that allows traders to speculate on the future price of an asset. They can be used to hedge against risk or to profit from price fluctuations.

This tutorial will provide you with a step-by-step guide on how to play Poloniex contracts. We will cover everything from opening an account to placing your first trade.

Step 1: Open an Account

The first step is to open an account on Poloniex. To do this, visit the Poloniex website and click on the "Sign Up" button. You will be asked to provide your email address, username, and password. Once you have filled out all of the required information, click on the "Create Account" button.

Step 2: Verify Your Account

Once you have created an account, you will need to verify your email address. To do this, check your email inbox for a message from Poloniex. The message will contain a verification link. Click on the link to verify your email address.

Step 3: Deposit Funds

Once your account is verified, you will need to deposit funds into it. Poloniex accepts a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. To deposit funds, click on the "Deposit" button in the top navigation bar. You will be presented with a list of supported cryptocurrencies. Select the cryptocurrency that you want to deposit and follow the instructions on the screen.

Step 4: Find the Contracts Market

Once you have deposited funds into your account, you can start trading contracts. To find the contracts market, click on the "Trade" button in the top navigation bar. Then, select "Contracts" from the drop-down menu.

Step 5: Choose a Contract

The contracts market on Poloniex offers a variety of contracts to choose from. You can trade contracts on a variety of assets, including Bitcoin, Ethereum, and Litecoin. You can also choose between different contract types, such as futures and options.

To choose a contract, click on the "Contracts" tab in the top navigation bar. Then, select the asset that you want to trade. You will be presented with a list of available contracts. Select the contract that you want to trade and click on the "Trade" button.

Step 6: Place Your Order

Once you have selected a contract, you can place your order. To do this, enter the quantity of contracts that you want to trade and the price that you want to pay. You can also choose to place a market order or a limit order.

A market order will be executed immediately at the current market price. A limit order will only be executed if the price reaches the specified limit price.

Step 7: Monitor Your Order

Once you have placed your order, you can monitor its status in the "Orders" tab in the top navigation bar. You can view the current price of the contract, the quantity of contracts that you have traded, and the profit or loss on your trade.

Step 8: Close Your Order

When you are ready to close your order, you can do so by clicking on the "Close" button in the "Orders" tab. You can also choose to close your order partially or fully.

Tips for Trading Contracts

Here are a few tips for trading contracts on Poloniex:

• Do your research. Before you start trading contracts, it is important to do your research and understand how they work.
• Start small. When you are first starting out, it is important to start small. This will help you to minimize your risk.
• Use stop-loss orders. Stop-loss orders can help you to protect your profits and limit your losses.
• Don't overtrade. One of the biggest mistakes that traders make is overtrading. This can lead to losses.
• Be patient. Trading contracts can be a profitable way to trade cryptocurrencies, but it is important to be patient. Don't expect to get rich quick.