What steps are necessary in the order placing process of Ouyi Contract?

To embark on contract trading on Ouyi, traders must grasp fundamental principles like leverage and risk management, select a contract type and trading pair tailored to their strategy, and determine suitable order types and parameters to execute and monitor their trades effectively.

Jan 28, 2025 at 10:54 pm

Key Points:

• Understand Contract Trading Basics
• Register and Fund an Ouyi Account
• Select the Contract Type and Trading Pair
• Determine Order Type and Parameters
• Execute and Monitor the Order
• Manage Risk and Stop Loss

Step 1: Understand Contract Trading Basics

Contract trading differs from spot trading in several aspects. Contracts are leveraged instruments which allow traders to trade with larger sums of money than they actually possess. However, this also means higher risk as both profits and losses are amplified. It is crucial to comprehend concepts like margin, leverage, liquidation, and risk management before engaging in contract trading.

Step 2: Register and Fund an Ouyi Account

Begin by creating an account on the Ouyi exchange. Once registered, verify your identity and deposit funds into the account.

Step 3: Select the Contract Type and Trading Pair

Ouyi offers various contract types, including perpetual, quarterly, and delivery. Each contract type has unique characteristics in terms of expiration, settlement, and risk profile. Select the contract type that aligns with your trading strategy.

Next, choose the desired trading pair. Ouyi offers a wide range of trading pairs, including major cryptocurrencies, indices, and commodities. Select the pair you wish to trade based on market analysis and trading objectives.

Step 4: Determine Order Type and Parameters

Ouyi allows various order types, such as limit orders, market orders, and stop orders. Each order type has its own advantages and drawbacks. Decide which order type suits your trading strategy and trading environment.

Order parameters include size (quantity), price, and trigger price (for stop orders). Determine these parameters based on your risk appetite, trading plan, and market conditions.

Step 5: Execute and Monitor the Order

Once the order details are confirmed, place the order by clicking the "Order" or "Submit" button. The order will be queued and executed once the specified price or conditions are met.

Step 6: Manage Risk and Stop Loss

Risk management is paramount in contract trading. Implement stop-loss orders to limit potential losses in case of adverse market movements. Monitor open positions closely and adjust leverage and risk parameters accordingly.

FAQs:

Q: What is the minimum margin required for Ouyi Contract trading?
A: The minimum margin requirement varies depending on the contract type and trading pair. Check the contract details page for specific requirements.

Q: How to calculate contract profit and loss?
A: Profit or loss is determined by the difference between the opening price and the closing price of the position. Opening and closing prices are measured in delta quotations, i.e., how much the price has changed since the opening or closing of the position.

Q: How to reduce the risk of liquidation?
A: Utilize stop-loss orders, control leverage, and manage position size to minimize the risk of liquidation.