AscendEX perpetual contract gameplay

In AscendEX's perpetual contract gameplay, market selection involves choosing trading pairs with adequate liquidity and understanding contract specifications to mitigate potential risks during trading.

Nov 22, 2024 at 07:42 pm

AscendEX Perpetual Contract Gameplay: A Comprehensive Guide

Introduction:

Perpetual contracts, also known as inverse futures, have emerged as a popular trading instrument in the cryptocurrency market, allowing traders to speculate on the future price of crypto assets with leverage. AscendEX, a leading cryptocurrency derivatives platform, offers a comprehensive suite of perpetual contract trading features for both beginners and experienced traders. This guide provides a detailed overview of AscendEX's perpetual contract gameplay, covering key aspects such as market selection, order types, and risk management strategies.

Step 1: Market Selection

• Choosing the Right Trading Pair: AscendEX offers a wide range of perpetual contract trading pairs, including popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). When selecting a trading pair, consider market liquidity, trading volume, and volatility.
• Understanding the Contract Specifications: Each perpetual contract has its own specifications, including contract size, tick size, and funding rate. Familiarize yourself with these specifications before trading to avoid potential misunderstandings.

Step 2: Order Types

• Market Orders: Market orders execute immediately at the best available price on the order book. They are ideal for quickly entering or exiting positions when the market is moving fast.
• Limit Orders: Limit orders specify a desired execution price. They are placed on the order book and executed only when the market price reaches or surpasses the specified price. Limit orders can be used to reduce slippage during large trades.
• Stop-Market Orders: Stop-market orders are triggered when the market price reaches a predefined trigger price. They are converted into market orders once triggered and execute immediately at the best available price. Stop-market orders can be used to protect profits or mitigate losses.

Step 3: Risk Management

• Leverage: Perpetual contracts are traded with leverage, which allows traders to amplify their potential profits or losses. Determine the appropriate leverage level based on your risk appetite and trading strategy. Higher leverage increases potential returns but also magnifies potential losses.
• Stop Loss Orders: Stop loss orders are essential risk management tools that help traders limit potential losses. They automatically close a position when the market price reaches a predefined stop loss level.
• Position Sizing: Position sizing involves determining the appropriate number of contracts to trade. Consider the leverage level, stop loss levels, and overall risk tolerance when determining your position size.

Step 4: Trading Strategies

• Scalping: Scalping is a trading strategy that involves capturing small, frequent profits by entering and exiting positions over short intervals. Scalpers rely on quick order execution and tight spreads.
• Trend Following: Trend following strategies aim to identify and ride market trends. Traders use technical analysis to determine market direction and enter positions in line with the trend.
• Contrarian Trading: Contrarian traders take positions opposite to the prevailing market sentiment. They believe that the market has overreacted in one direction and is due for a correction.

Step 5: Advanced Features

• Trailing Stop Orders: Trailing stop orders automatically adjust stop loss levels in line with market price movements. They help protect profits and lock in gains during volatile market conditions.
• OCO Orders: One cancels the other (OCO) orders are conditional orders that allow traders to place two orders at once. If one order is executed, the other is automatically canceled. This feature helps traders manage risk and secure profits.
• Leverage Management: AscendEX bietet Flexible Leverage, wo traders die Leverage level jederzeit während eines Trade verändern können, um Risiken zu minimieren oder Gewinne zu maximieren.