How to close a Crypto.com contract

To close a Crypto.com contract, determine your position, select a close order type (market, limit, or stop), and execute the order to terminate exposure to the underlying cryptocurrency.

Nov 26, 2024 at 11:46 pm

Step 1: Understand the Types of Crypto.com Contracts

Crypto.com offers two main types of contracts: futures contracts and perpetual swaps. Futures contracts are agreements to buy or sell a specific cryptocurrency at a predetermined price on a future date. Perpetual swaps are similar to futures contracts, but they do not have a fixed expiration date and can be held indefinitely.

Step 2: Determine Your Position

Before you can close a Crypto.com contract, you need to determine your current position. This includes the type of contract you have, the underlying cryptocurrency, the contract size, and the current price of the cryptocurrency. You can find this information in your Crypto.com account under the "Contracts" tab.

Step 3: Choose a Close Order Type

Once you know your position, you can choose a close order type. The most common close order types are:

• Market Order: A market order is an order to close your contract at the current market price. This is the simplest and fastest way to close a contract, but it can also result in slippage, which is the difference between the expected price and the actual execution price.
• Limit Order: A limit order is an order to close your contract at a specific price. This can be useful if you want to lock in a profit or avoid a loss. However, there is no guarantee that your limit order will be executed, especially if the market is moving quickly.
• Stop Order: A stop order is an order to close your contract if the price of the underlying cryptocurrency reaches a certain level. This can be useful if you want to protect your profits or minimize your losses.

Step 4: Place Your Close Order

Once you have chosen a close order type, you can place your order. To do this, go to the "Contracts" tab in your Crypto.com account and click on the "Close" button for the contract you want to close. Enter the order type, quantity, and price (if applicable) and click on the "Place Order" button.

Step 5: Monitor Your Order

Once you have placed your close order, you can monitor its status in the "Orders" tab of your Crypto.com account. Your order will be executed when the market price reaches your specified price (for limit orders) or the current market price (for market orders).

Step 6: Close Your Position

Once your close order is executed, your position will be closed. This means that you will no longer have any exposure to the underlying cryptocurrency. You can check your closed positions in the "Positions" tab of your Crypto.com account.