AscendEX coin-margined contract tutorial

AscendEX's coin-margined contract trading provides traders with lower margin requirements, increased leverage, and direct exposure to price volatility of cryptocurrencies.

Dec 01, 2024 at 04:16 pm

AscendEX Coin-Margined Contract Tutorial: A Comprehensive Guide

AscendEX, a global cryptocurrency exchange renowned for its user-friendliness and diverse trading options, offers a sophisticated coin-margined contract trading platform. This tutorial delves into the essentials of coin-margined contracts on AscendEX, equipping traders with the knowledge and skills to navigate this dynamic market effectively.

What is Coin-Margined Contracts on AscendEX?

Coin-margined contracts, also known as perpetual contracts or inverse perpetual contracts, are unique financial instruments that allow traders to speculate on the future price of cryptocurrencies using a specified digital asset as collateral instead of stablecoins. This approach provides several advantages, including:

• Lower Margin Requirements: Compared to traditional margin trading, coin-margined contracts typically require lower margin requirements, making them accessible to traders with limited capital.
• Increased Leverage: Traders can utilize leverage to amplify their potential returns, although it's crucial to manage risk responsibly.
• Exposure to Price Volatility: Coin-margined contracts provide direct exposure to the underlying asset's price fluctuations, enabling traders to profit from both rising and falling markets.

Steps to Trade Coin-Margined Contracts on AscendEX:

1. Create an AscendEX Account:

• Register for an AscendEX account by providing necessary personal and KYC information.

2. Fund Your Account:

• Transfer cryptocurrency funds from an external wallet or use other supported payment methods to deposit funds into your AscendEX account.

3. Access Coin-Margined Contracts Trading:

• Navigate to the AscendEX trading interface and select "Derivatives" from the top menu.
• Choose "Coin-Margined" from the tabs below.

4. Choose a Trading Pair:

• Select the desired cryptocurrency pair for your trade. AscendEX offers a wide range of coin-margined contracts, including BTC/USDT, ETH/USDT, and more.

5. Configure Contract Parameters:

• Specify the contract size, which represents the notional value of your trade.
• Select the desired leverage, keeping in mind the risk involved with higher leverage.
• Set the stop loss and take profit levels to manage risk and secure potential gains.

6. Place Your Order:

• Choose between a long (buy) or short (sell) position, depending on your market outlook.
• Enter the quantity you wish to trade and review the estimated margin and profit/loss before confirming the order.

7. Manage Your Position:

• Monitor your open positions in real-time, adjusting stop loss and take profit levels as needed.
• Consider additional order types, such as limit orders and conditional orders, to refine your trading strategy.

8. Close Your Position:

• To close your position, simply execute an opposite order to your initial trade.
• For instance, if you opened a long position, you would close it by placing a short order of the same size.

9. Withdraw Your Funds:

• Once you have closed your positions and realized profits or losses, you can withdraw your funds from AscendEX to an external wallet or other preferred destination.