AscendEX contract trading rules

To trade confidently on AscendEX, familiarize yourself with its contract trading rules, including contract specifications, margin requirements, order types, and position management protocols.

Nov 23, 2024 at 07:50 am

AscendEX Contract Trading Rules: A Comprehensive Guide

AscendEX, a leading global cryptocurrency exchange, offers a comprehensive suite of contract trading services to meet the needs of traders of all levels. This includes spot trading, margin trading, and contract trading.

For those new to contract trading, it's essential to understand the rules and regulations that govern this complex form of trading. This guide will provide a detailed overview of AscendEX contract trading rules, ensuring that you have the knowledge and understanding to trade confidently on the platform.

1. Contract Specifications

• Select the trading pair you want to trade.
• Determine the contract size, which represents the number of the underlying asset in each contract.
• Set the leverage you want to use, which magnifies your potential profits and losses.
• Choose the order type you want to place, such as limit order, market order, or stop-limit order.
• Enter the quantity of contracts you want to trade.
• Review and confirm your order before submitting it.

2. Margin Requirements

• Initial margin: This is the minimum amount of funds you need in your account to open a position. It varies depending on the contract and leverage used.
• Maintenance margin: This is the minimum amount of funds you need to maintain in your account to keep your position open. If your account balance falls below the maintenance margin, you may be subject to a margin call.

3. Order Types

• Limit order: This order allows you to specify the price at which you want to buy or sell a contract. It will only execute if the market price reaches your specified price.
• Market order: This order executes immediately at the best available market price.
• Stop-limit order: This order combines a stop order with a limit order. It will only execute if the market price reaches your specified stop price, at which point it becomes a limit order and executes at your specified limit price.

4. Position Management

• Monitor your open positions and adjust them as needed.
• You can close your position by placing an opposite order of the same size.
• You can also use stop-loss or take-profit orders to manage your risk.

5. Liquidation

• If your account balance falls below the maintenance margin, you may be subject to liquidation. This means that your position will be closed automatically by the exchange at a loss.
• You can avoid liquidation by adding funds to your account or reducing your position size.

6. Fees

• Maker fee: This fee is charged when you place an order that adds liquidity to the market.
• Taker fee: This fee is charged when you place an order that takes liquidity from the market.
• Funding fee: This fee is charged every 8 hours to adjust the price of the perpetual contract to the spot price.

7. Customer Support

• If you have any questions or need assistance, you can contact AscendEX customer support 24/7 via live chat, email, or social media. They are available to help you with any issues you may encounter.