How to close a Deepcoin contract

How to Close a Deepcoin Contract

Closing a Deepcoin contract involves several key steps. By following these steps carefully, you can complete the process efficiently and seamlessly.

Step 1: Understand Contract Types and Settlement Options

• Linear Contracts: Linear contracts are perpetual futures where profits and losses are settled in Tether (USDT). They do not have an expiry date and can be held indefinitely. To close a linear contract, you can simply execute an opposite-side trade of equal size and price.
• Inverse Contracts: Inverse contracts are perpetual futures where profits and losses are settled in the underlying asset. They also do not have an expiry date and can be held indefinitely. To close an inverse contract, you can either execute an opposite-side trade or request settlement in the underlying asset.
• Options Contracts: Options contracts are derivatives that give buyers the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a specified strike price on or before a specified expiration date. To close an options contract, you can either exercise the contract by buying or selling the underlying asset, or you can sell the contract to another market participant.

Step 2: Select the Target Position

Once you understand the contract type, you need to determine the target position you want to close. If you hold a long position, you must execute a sell order to close the contract. Conversely, if you hold a short position, you must execute a buy order to close the contract.

Step 3: Execute the Closing Order

To execute the closing order, navigate to the trading interface and enter the details of the order. Specify the contract type, the underlying asset, the trade price, and the quantity. Once you are satisfied with the order details, click 'Submit' to execute the trade.

Step 4: Monitor Contract Closure

After executing the closing order, monitor your account to ensure the trade is completed successfully. You can do this by checking your order history or by viewing your open positions. Once the trade is closed, the contract will be removed from your open positions and the proceeds (if any) will be credited to your account.

Step 5: Understanding Transaction Fees

Unlike some other cryptocurrency exchanges, Deepcoin does not charge trading fees for contract trading. However, you must pay network fees to the blockchain network used for settlement. These fees vary depending on the network congestion and the size of your trade.

Step 6: Additional Considerations

• Market Conditions: Before closing a contract, consider the prevailing market conditions. If the market is volatile, you may want to wait for a more favorable price or hedge your position with additional trades.
• Slippage: Slippage is the difference between the expected trade price and the actual execution price. It can occur when there is insufficient liquidity or during periods of high volatility. To mitigate slippage, use limit orders or trade during less volatile market hours.
• Risk Management: Contract trading involves inherent risk. You should carefully consider your financial situation and risk tolerance before entering into any trades.