AscendEX contract trading explanation

AscendEX's contract trading platform empowers traders to speculate on cryptocurrency prices without asset ownership, offering customizable settings and risk management tools.

Nov 23, 2024 at 01:13 pm

AscendEX Contract Trading Explanation

Contract trading, also known as futures trading, is a popular form of cryptocurrency trading that allows traders to speculate on the future price of an asset without taking ownership of the underlying asset itself. AscendEX is a leading cryptocurrency exchange that offers a robust contract trading platform with a wide range of features and benefits. This article will provide a comprehensive explanation of AscendEX contract trading, covering everything from the basics to advanced trading strategies.

Step 1: Understanding Contract Trading

Contract trading involves entering into an agreement with another trader to buy or sell an asset at a specified price on a future date. The asset can be a cryptocurrency, a commodity, or even a stock index. The trader who agrees to buy the asset is known as the "buyer," while the trader who agrees to sell the asset is known as the "seller."

The price at which the asset is bought or sold is known as the "contract price." The contract also specifies the quantity of the asset that will be traded and the date on which the contract will expire.

Step 2: Opening a Contract Trading Account with AscendEX

To start contract trading on AscendEX, you will need to create an account and deposit funds into your account. AscendEX accepts a wide range of deposit methods, including credit cards, debit cards, and wire transfers.

Once you have deposited funds into your account, you can navigate to the "Contract Trading" section of the AscendEX website or mobile app. Here, you will see a list of all the available contract trading pairs.

Step 3: Choosing a Contract Trading Pair

The first step to trading contracts is to choose a trading pair. A trading pair is simply a pair of assets that are being traded against each other. For example, the BTC/USDT trading pair represents the trading of Bitcoin (BTC) against Tether (USDT).

When choosing a trading pair, you should consider the following factors:

• Liquidity: The liquidity of a trading pair measures how easy it is to buy or sell the asset. A highly liquid trading pair will have a large number of buyers and sellers, which means that you will be able to execute your trades quickly and easily.
• Volatility: The volatility of a trading pair measures how much the price of the asset fluctuates. A volatile trading pair will experience large price swings, which can provide opportunities for profits but also for losses.
• Trading fees: AscendEX charges a trading fee for each contract trade. The trading fee is typically a percentage of the trade value. You should consider the trading fees when choosing a trading pair, as they can eat into your profits.

Step 4: Placing a Contract Order

Once you have chosen a trading pair, you can place a contract order. A contract order is simply an instruction to buy or sell a certain quantity of the asset at a specified price.

There are two main types of contract orders:

• Market orders: Market orders are executed immediately at the current market price.
• Limit orders: Limit orders are executed only when the price of the asset reaches a specified level.

When placing a contract order, you will need to specify the following:

• Order type: The type of order you want to place (market order or limit order).
• Order size: The quantity of the asset that you want to buy or sell.
• Order price: The price at which you want to buy or sell the asset (for limit orders only).

Step 5: Managing Your Contract Positions

Once you have placed a contract order, it will be filled and you will have a position in the asset. You can manage your contract positions by viewing the "Positions" section of the AscendEX website or mobile app.

In the "Positions" section, you will see a list of all your open contract positions. For each position, you will see the following information:

• Symbol: The trading pair for the contract position.
• Size: The quantity of the asset that you have bought or sold.
• Entry price: The price at which you entered the contract position.
• Current price: The current market price of the asset.
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