How to close the contract on AscendEX

How to Close a Contract on AscendEX

AscendEX, a leading digital asset trading platform, provides traders with access to a wide range of financial instruments, including perpetual contracts. Perpetual contracts are financial agreements that allow traders to speculate on the future price of an asset without an expiration date. This guide will provide a comprehensive overview of the process of closing a contract on AscendEX, ensuring that traders can effectively manage their positions and mitigate potential risks.

1. Pre-requisites

• Ensure that you have an active AscendEX account.
• Fund your account with sufficient funds to cover the initial margin and potential losses.
• Select the desired contract and open a position.
• Monitor the market conditions and your position regularly.

2. Understanding Contract Types

AscendEX offers two types of perpetual contracts:

• Inverse Swaps: These contracts are quoted in the inverse of the underlying asset's price. A positive position means a bet on the asset's downside, while a negative position represents a bet on the asset's upside.
• Linear Swaps: These contracts are quoted in the same units as the underlying asset's price. A positive position represents a bet on the asset's upside, while a negative position indicates a bet on the asset's downside.

3. Closing a Contract

To close a contract on AscendEX, follow these steps:

1. Navigate to the "Contracts" section: Log into your AscendEX account and click on the "Contracts" tab located at the top of the page.
2. Select the Contract: From the list of available contracts, select the contract you wish to close.
3. Locate the "Position" Panel: On the contract page, scroll down to the "Position" section. This section displays information about your current open positions, including the contract type, position size, entry price, and unrealized profit/loss.
4. Determine Position Direction: Identify the direction of your position. If you are long, you have a positive position and believe the asset's price will rise. If you are short, you have a negative position and anticipate the asset's price to decline.
5. Set Order Parameters: To close your position, enter the desired order parameters in the "Order Form" section. Specify the order type, quantity, and limit price (if applicable). You can choose to close your entire position or a portion of it.
6. Submit Order: Once satisfied with the order parameters, click on the "Sell" or "Buy" button (depending on your position direction) to submit the order.
7. Monitor Order: Monitor the progress of your order in the "Order History" section. Once the order is filled, your contract will be closed.

4. Example

Suppose you have opened a long position with 10 contracts on the BTC-USDT-SWAP contract (Inverse Swap). At the time of opening, the BTC price was $40,000, and your entry price was $39,000.

Assume the BTC price has now risen to $42,000. To close your long position, you would enter the following order parameters:

• Order Type: Sell
• Quantity: 10 (close entire position)
• Limit Price: $42,000 (optional, if you want to sell at a specific target price)

Upon order execution, your long position will be closed, resulting in a profit of $3,000 (10 contracts x ($42,000 - $39,000)). The profit will be credited to your account balance.

Conclusion

Closing a contract on AscendEX is a straightforward process that enables traders to effectively manage their positions and realize their profits or minimize losses. By following the steps outlined in this guide, traders can navigate the contract trading platform seamlessly and make informed decisions to achieve their trading goals.