How to close a contract on Bitget

As a Bitget user, understanding how to close a contract is essential for effectively managing risk and optimizing potential returns in the dynamic cryptocurrency derivatives market.

Nov 18, 2024 at 06:03 am

How to Close a Contract on Bitget

Introduction:

Bitget is a leading cryptocurrency derivatives exchange that offers a wide range of futures contracts for trading. As a trader, understanding how to effectively close a contract is crucial for managing risk and optimizing returns. This comprehensive guide will provide step-by-step instructions on how to close a contract on Bitget, addressing common questions and providing detailed explanations.

Step 1: Accessing the Open Positions Page

• Log in to your Bitget account and hover over the "Trade" tab in the top navigation menu.
• Select "Futures" and then click on "Open Positions" to view all open contracts.

Step 2: Identifying the Contract to Close

• Locate the contract you want to close from the list of open positions.
• Review the contract details, including the underlying asset, leverage, and expiration date.

Step 3: Determining the Position Type

• Bitcoin and other perpetual contracts have two position types: Long and Short.
• Long positions are bets on price increases, while Short positions are bets on price decreases.

Step 4: Choosing the Closing Method

• There are two methods for closing a contract: Market Close and Limit Close.
• Market Close allows you to close the contract at the current market price.
• Limit Close allows you to set a specific price at which the contract will be closed.

Step 5: Closing a Contract with Market Close

• Click the "Close" button corresponding to the contract you want to close.
• Select "Market Close" as the closing method.
• Verify the closing price and confirm the transaction.

Step 6: Closing a Contract with Limit Close

• Click the "Close" button corresponding to the contract you want to close.
• Select "Limit Close" as the closing method.
• Specify the desired closing price and confirm the transaction.

Step 7: Monitoring the Closure Process

• Once a contract is closed, the order will be displayed under the "Order History" section.
• The status of the order will be "Closed" when the transaction is complete.

Step 8: Managing Risk and Unwinding Positions

• Proper risk management is essential when closing contracts.
• Consider using stop-loss orders to protect against significant losses.
• Unwinding positions gradually can help reduce the impact of market volatility.

Additional Considerations:

• Bitget charges a small fee for closing contracts.
• The closing price may differ from the current market price due to spread and liquidity conditions.
• Traders should carefully monitor their open positions and make informed closing decisions based on market conditions and risk tolerance.