Bitget currency-based contract tutorial

To trade currency-based contracts, traders follow a process involving choosing an exchange, creating an account, funding the account, selecting a contract, determining position size, placing an order, and monitoring the position.

Nov 16, 2024 at 10:56 pm

Bitget Currency-Based Contract Tutorial

Overview

Currency-based contracts are a type of futures contract that allows traders to speculate on the future price of a cryptocurrency. They are similar to traditional futures contracts, but they are settled in the underlying cryptocurrency, rather than cash. Currency-based contracts are a popular way to trade cryptocurrencies, as they offer a number of advantages over traditional futures contracts.

Advantages of Currency-Based Contracts

• Leverage: Currency-based contracts offer leverage, which allows traders to increase their potential profits.
• Hedging: Currency-based contracts can be used to hedge against risk.
• Liquidity: Currency-based contracts are traded on a centralized exchange, which provides a high level of liquidity.
• Volatility: Currency-based contracts allow traders to profit from the volatility of the cryptocurrency market.

How to Trade Currency-Based Contracts

1. Choose an exchange
2. Create an account
3. Fund your account
4. Choose a contract
5. Determine your position size
6. Place your order
7. Monitor your position

Step 1: Choose an Exchange

There are multiple exchanges that offer currency-based contracts. Each exchange has its own fees, features, and trading volume, so it is important to compare exchanges before choosing one. Some of the most popular exchanges include:

• Binance
• Bybit
• Huobi
• OKX
• KuCoin

Step 2: Create an Account

Once you have chosen an exchange, you will need to create an account. This process typically involves providing your email address, password, and personal information. You may also be required to verify your identity by submitting a government-issued ID.

Step 3: Fund Your Account

Once you have created an account, you will need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency with a credit or debit card.

Step 4: Choose a Contract

Once you have funded your account, you will need to choose a contract to trade. There are typically multiple contracts available for each cryptocurrency, with each contract having a different expiration date and leverage ratio.

Step 5: Determine Your Position Size

The next step is to determine your position size. This is the amount of cryptocurrency that you will be trading. Your position size should be based on your risk tolerance and your trading strategy.

Step 6: Place Your Order

Once you have determined your position size, you can place your order. You will need to specify the type of order you want to place (market order or limit order), the price at which you want to place your order, and the amount of cryptocurrency that you want to trade.

Step 7: Monitor Your Position

Once you have placed your order, it is important to monitor your position. This includes tracking the price of the cryptocurrency and the value of your position. You may also want to use stop-loss orders or take-profit orders to protect your profits.