AscendEX contract operation process

AscendEX's contract operation process simplifies perpetual contract trading with key steps like selecting a trading pair, setting order parameters, monitoring real-time positions, and managing collateral.

Nov 26, 2024 at 04:18 pm

AscendEX Contract Operation Process: A Comprehensive Guide

Understanding AscendEX Contract Operation

AscendEX is a leading cryptocurrency exchange that offers perpetual contracts on a wide range of crypto assets. Contract trading involves speculating on the price movements of underlying assets using leverage. To ensure a seamless trading experience, AscendEX has developed a comprehensive contract operation process.

Essential Steps in Contract Operation

The AscendEX contract operation process consists of the following key steps:

1. Opening a Contract Account:

• Registering an account on AscendEX is the first step to participate in contract trading.
• Navigate to the "Contracts" section and select the "Open Contract Account" option.
• Transfer funds from your spot trading account to the contract account. The minimum deposit amount varies based on the contract being traded.

2. Selecting a Trading Pair:

• AscendEX offers perpetual contracts on a variety of crypto assets. Each contract represents a specific trading pair, such as BTC/USDT or ETH/BUSD.
• Choose the trading pair that aligns with your preferred crypto asset and market sentiment.

3. Setting Order Parameters:

• Determine the type of order you wish to place, such as a limit order or a market order.
• Specify the order quantity, which represents the number of contracts you want to trade.
• Set the desired order price or accept the market price for market orders.
• Choose the leverage level to amplify your potential profits and losses. AscendEX offers leverage options ranging from 1x to 100x.

4. Monitoring Real-Time Positions:

• AscendEX provides real-time updates on the status of your open positions.
• Monitor your position's entry price, current market price, and unrealized profit or loss.
• Adjust your position size or leverage as needed to manage risk and maximize profit potential.

5. Closing a Contract Position:

• To close an open position, place an order with the opposite trading direction. For example, if you hold a long position, sell an equal number of contracts to close it.
• The proceeds from closing your position will be credited to your contract account balance, including any realized profit or loss.
• Alternatively, you can use the "Liquidate Position" option to close your position at the current market price.

6. Managing Collateral and Margin:

• AscendEX requires traders to maintain a minimum margin level to cover potential losses.
• The margin level is calculated as the ratio of available collateral to the total position value.
• If your margin level falls below a certain threshold, you will receive an automatic margin call and may be obligated to add more collateral or close your position.

7. Understanding Funding Rates:

• Perpetual contracts are perpetual, meaning they do not expire. To align the spot and futures markets, AscendEX adjusts funding rates every 8 hours.
• Funding rates are either paid to or received from traders depending on the market conditions and the position they hold.
• Traders must be aware of funding rates to avoid unintended consequences on their trading positions.

8. Leverage Utilization:

• Leverage allows traders to amplify their potential profits but also increases their risk.
• AscendEX offers leverage options ranging from 1x to 100x.
• Use leverage prudently, as excessive leverage can lead to significant losses.

9. Risk Management Techniques:

• AscendEX provides several risk management tools to mitigate losses, such as stop-loss orders and take-profit orders.
• Stop-loss orders automatically sell your position when it reaches a specified price level to limit losses.
• Take-profit orders close your position when it reaches a predefined profit target, locking in your gains.

10. Trading Fees and Commissions:

• AscendEX charges trading fees for opening, closing, and maintaining contract positions.
• The fees vary depending on the contract, market conditions, and VIP level of the trader.
• Factors such as trading volume and market liquidity can also influence trading fees.