How to open contract trading on Upbit

To open contract trading on Upbit, complete Level 2 identity verification and 2FA setup, then fund your account, understand contract basics, select a market, specify contract details, place an order, monitor your position, and close it with an opposing order.

Nov 21, 2024 at 09:06 am

How to Open Contract Trading on Upbit

Step 1: Verify Your Identity (Verification Level 2)

To access contract trading on Upbit, you must complete Level 2 verification, which involves verifying your identity with a government-issued ID. This process typically takes a few minutes to complete.

Step 2: Enable Two-Factor Authentication (2FA)

For added security, Upbit requires all contract traders to enable 2FA, either via SMS or Google Authenticator. Follow the instructions provided on the platform to set up 2FA.

Step 3: Understand Contract Trading Basics

Before engaging in contract trading, it's essential to grasp its fundamental concepts. Learn about contract types (e.g., futures, options), leverage, and risk management.

Step 4: Fund Your Account

To start trading contracts, you must fund your Upbit account with supported cryptocurrencies. The available funding methods vary by region.

Step 5: Access the Contract Trading Interface

Navigate to the "Contracts" section within the Upbit trading platform. This interface provides access to the available contract markets and trading tools.

Step 6: Select a Contract Market

Choose the contract market you want to trade by selecting the underlying asset (e.g., Bitcoin, Ethereum). Each market offers different contract specifications, such as expiry dates and tick sizes.

Step 7: Specify Contract Details

Enter the contract size (leverage) and desired order type. Contracts are typically traded using leverage, which amplifies both profits and losses. Choose a leverage level appropriate for your risk tolerance.

Step 8: Open a Contract Position

Depending on your order type, either "buy/long" or "sell/short" the contract. Buying a contract (going long) bets on rising prices, while selling a contract (going short) bets on falling prices.

Step 9: Monitoring and Managing Positions

Once your contract position is open, monitor its status within the "Positions" tab. You can track the current profit/loss, margin usage, and adjust leverage if necessary.

Step 10: Close a Contract Position

To exit a contract position, close it with an opposite order. For example, if you bought a contract (went long), close it by selling the same contract (going short).

Additional Tips for Contract Trading on Upbit:

• Use a demo account to practice contract trading before committing real funds.
• Set stop-loss and take-profit orders to manage risk and secure profits.
• Research and analyze the underlying asset's price action before making trades.
• Exercise caution with high leverage, as it can magnify both profits and losses.
• Seek professional advice if you are new to contract trading, as it carries substantial risks.