AscendEX Contract Tutorial

AscendEX's contract trading platform offers traders a comprehensive suite of tools and resources to navigate the complex world of futures trading, including customizable stop-loss and take-profit orders for risk management.

Nov 26, 2024 at 03:10 pm

AscendEX Contract Tutorial: A Comprehensive Guide to Trading Futures

Introduction

AscendEX, a leading global cryptocurrency exchange, offers a robust platform for trading futures contracts. This tutorial will provide a comprehensive guide to using the AscendEX contract trading platform, covering everything from basic concepts to advanced trading strategies.

Chapter 1: Understanding Futures Contracts

1. What are Futures Contracts? Futures contracts are agreements to buy or sell an asset, such as a cryptocurrency or commodity, at a predetermined price on a specific future date.
2. Advantages and Disadvantages of Futures Contracts: Futures contracts offer traders several advantages, including leverage, price discovery, and hedging risks. However, they also come with risks, such as the potential for losses that exceed the initial investment.
3. Types of Futures Contracts: AscendEX offers a variety of futures contracts, including perpetual contracts, quarterly contracts, and basis futures. Each type has its own unique characteristics and trading conditions.

Chapter 2: Creating an AscendEX Account

1. Registering on AscendEX: Registering for an AscendEX account is a simple process that involves providing personal information and verifying your identity.
2. Account Types: AscendEX offers two main account types: Standard and Margin. Standard accounts are suitable for beginners, while Margin accounts allow traders to leverage their positions.
3. Depositing Funds: AscendEX supports deposits in various cryptocurrencies and fiat currencies. Follow the platform's instructions carefully to deposit funds into your account.

Chapter 3: Trading Futures on AscendEX

1. Accessing the Contract Trading Platform: The AscendEX contract trading platform is easily accessible through the "Derivatives" tab on the website or mobile app.
2. Choosing the Right Contract: Select the desired cryptocurrency or asset and choose the appropriate contract type and expiration date.
3. Understanding the Order Book and Trade Interface: The order book displays the bids (offers to buy) and asks (offers to sell) for the selected contract. The trade interface allows traders to place orders and manage their positions.

Chapter 4: Advanced Trading Techniques

1. Leverage Trading: Leverage allows traders to amplify their positions by borrowing funds from the exchange. While leverage can increase profits, it also magnifies losses.
2. Stop-Loss and Take-Profit Orders: These orders are used to automatically close positions at predetermined levels to limit losses or protect profits.
3. Hedging Strategies: Traders can use futures contracts to hedge their positions in the spot market or to speculate on price movements in different markets.

Chapter 5: Risk Management

1. Managing Risk: Risk management is essential in futures trading. Traders should set clear risk limits and adhere to them consistently.
2. Position Sizing: Calculate an appropriate position size based on your risk tolerance and available capital.
3. Margin Management: Monitor your margin levels regularly and avoid overleveraging your positions.

Chapter 6: Closing Positions

1. Selling Contracts: To close a long position (bought contracts), sell the same number of contracts at a higher price. To close a short position (sold contracts), buy back the same number of contracts at a lower price.
2. Settlement: For perpetual contracts, settlement occurs continuously. For quarterly contracts, settlement occurs on the specified expiration date.
3. Profit and Loss Calculation: Your profit or loss is calculated based on the difference between the opening and closing prices of your positions, factoring in leverage and any applicable funding fees.

Chapter 7: Best Practices and Tips

1. Educate Yourself: Thoroughly understand futures contracts and trading strategies before getting started.
2. Start Slow: Start with small positions and gradually increase your trading activity as you gain experience.
3. **Use Dem