How to activate Poloniex contract multiples

Traders can activate Poloniex contract multiples, leveraging their positions on futures contracts, by creating an account, funding it, selecting a multiple, trading it like a futures contract, and monitoring and closing their position judiciously, considering risks and volatility.

Nov 30, 2024 at 07:44 am

How to Activate Poloniex Contract Multiples

Poloniex contract multiples, also known as "leveraged tokens," allow traders to amplify their positions on the exchange's futures market. By using multiples, traders can potentially increase their profits or losses, depending on whether the underlying asset's price moves in their favor or against them.

To activate Poloniex contract multiples, follow these steps:

1. Create a Poloniex Account

If you don't already have a Poloniex account, you will need to create one before you can trade multiples. You can do this by visiting the Poloniex website and clicking on "Sign Up." Once you have created an account, you will need to verify your email address and complete your KYC verification.

2. Fund Your Account

Once you have verified your account, you will need to fund it with either crypto or fiat currency. You can do this by clicking on the "Deposit" tab on the Poloniex website. Poloniex supports a variety of deposit methods, including wire transfer, credit card, and cryptocurrency.

3. Navigate to the Contract Multiples Page

Once your account is funded, you can navigate to the contract multiples page by clicking on "Futures" and then "Contract Multiples." Here, you will see a list of all the available multiples.

4. Choose a Multiple

Once you have chosen a multiple, you will need to click on the "Activate" button. This will open up a new window where you can confirm the activation.

5. Trade the Multiple

Once you have activated the multiple, you can start trading it like any other futures contract. You can place long or short orders, and you can use leverage to increase your potential profits or losses.

6. Monitor Your Position

It is important to monitor your position closely when trading multiples. The underlying asset's price can move quickly, and you could lose money if you are not careful. You can monitor your position by clicking on the "Positions" tab on the Poloniex website.

7. Close Your Position

When you are ready to close your position, you can do so by clicking on the "Close Position" button on the Poloniex website. You can also set a stop-loss order to automatically close your position if the underlying asset's price falls below a certain level.

Considerations Before Trading Contract Multiples

Before you start trading contract multiples, it is important to consider the following:

• Risk: Contract multiples can be a high-risk investment. You could lose all of your money if the underlying asset's price moves against you.
• Leverage: The use of leverage can increase your potential profits or losses. However, it is important to use leverage carefully, as it can also magnify your losses.
• Volatility: The underlying asset's price can be volatile, which could lead to large swings in the value of your multiple.
• Fees: Poloniex charges a trading fee for each multiple that you trade. These fees can vary depending on the multiple that you are trading.

Conclusion

Poloniex contract multiples can be a powerful tool for traders who want to amplify their positions on the futures market. However, it is important to use multiples carefully, as they can also be a high-risk investment. If you are not sure whether multiples are right for you, it is important to do your own research before you start trading.