How does BigONE play perpetual contracts?

BigONE lets traders speculate on digital asset price movements without physical delivery or expiry dates through its range of perpetual contracts.

Nov 24, 2024 at 06:04 pm

How Does BigONE Play Perpetual Contracts?

Perpetual contracts, also known as inverse swaps or perpetual futures, are a type of derivative instrument that allows traders to speculate on the future price of an underlying asset, such as Bitcoin or Ethereum, without the need to physically deliver or receive the asset itself. Unlike traditional futures contracts, perpetual contracts do not have a predetermined expiry date and can be held indefinitely.

BigONE, a leading cryptocurrency exchange, offers a range of perpetual contracts that allow traders to gain exposure to the price movements of various digital assets. This guide will provide a step-by-step walkthrough on how to play perpetual contracts on BigONE.

Step 1: Create a BigONE Account

To start trading perpetual contracts on BigONE, you will need to create an account on the exchange. This process typically involves providing basic personal information, such as your name, email address, and phone number. Once your account has been created, you will need to verify your identity by submitting a government-issued ID and proof of residence.

Step 2: Fund Your Account

Once your account has been verified, you will need to fund it with the cryptocurrency that you wish to use for trading. BigONE supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, USDT, and Binance Coin. You can deposit funds into your account by sending cryptocurrency from another wallet or exchange, or by purchasing cryptocurrency directly through BigONE's website.

Step 3: Choose a Perpetual Contract

BigONE offers a variety of perpetual contracts, each of which is based on a different underlying asset. You can choose the contract that you wish to trade based on the asset that you are interested in speculating on, as well as the risk and reward profile that you are comfortable with.

Step 4: Place an Order

To place an order for a perpetual contract, you will need to specify the following parameters:

• Order type: The type of order that you want to place, such as a market order or a limit order.
• Direction: Whether you want to buy or sell the perpetual contract.
• Quantity: The number of contracts that you want to buy or sell.
• Leverage: The amount of leverage that you want to use for the trade. Leverage allows you to amplify your potential profits, but it also increases your potential losses.

Step 5: Monitor Your Position

Once you have placed an order, you can monitor your position in real-time through the BigONE trading interface. The interface will provide you with information such as the current mark price of the perpetual contract, your unrealized profit or loss, and your margin level.

Step 6: Close Your Position

To close your position, you will need to place an order that is equal in size and opposite in direction to your original order. For example, if you bought 10 perpetual contracts, you would need to sell 10 perpetual contracts to close your position.

Step 7: Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from BigONE by following the steps outlined on the exchange's website. You can withdraw funds in the same cryptocurrency that you deposited.