How Crypto.com trades perpetual contracts

Trading perpetual contracts on Crypto.com presents traders with the opportunity to leverage their investments and speculate on price fluctuations without purchasing the underlying assets.

Dec 02, 2024 at 05:26 am

How Crypto.com Trades Perpetual Contracts

Perpetual contracts, also known as perpetual swaps, are a type of financial derivative that allows traders to speculate on the future price of an underlying asset without having to take physical delivery of the asset. Perpetual contracts are similar to futures contracts, but they do not have a fixed expiration date. This means that traders can hold perpetual contracts indefinitely, or until they decide to close their position.

Crypto.com is one of the leading cryptocurrency exchanges that offers perpetual contracts trading. The exchange offers a wide range of perpetual contracts on different cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. Crypto.com also offers perpetual contracts on indices, such as the Crypto Fear & Greed Index and the DeFi Index.

To trade perpetual contracts on Crypto.com, you will need to first create an account and deposit funds into your account. Once you have funded your account, you can start trading perpetual contracts by following these steps:

1. Choose the perpetual contract you want to trade. Crypto.com offers a wide range of perpetual contracts on different cryptocurrencies and indices. You can choose the perpetual contract that you want to trade by clicking on the "Markets" tab and then selecting the "Perpetual" tab.
2. Place your order. Once you have chosen the perpetual contract you want to trade, you can place your order. You can place a buy order or a sell order. A buy order is an order to buy the perpetual contract at the current market price. A sell order is an order to sell the perpetual contract at the current market price.
3. Set your leverage. When you place an order for a perpetual contract, you will need to set your leverage. Leverage is a way to multiply your potential profits and losses. However, it is important to use leverage carefully, as it can also magnify your losses.
4. Monitor your position. Once you have placed your order, you will need to monitor your position. You can do this by clicking on the "Positions" tab. The Positions tab will show you all of your open positions, as well as their current profit and loss.
5. Close your position. When you are ready to close your position, you can do so by clicking on the "Close Position" button. The Close Position button will close your position at the current market price.

Tips for Trading Perpetual Contracts on Crypto.com

Here are a few tips for trading perpetual contracts on Crypto.com:

• Use leverage carefully. Leverage can magnify your profits and losses. It is important to use leverage carefully and only use as much leverage as you can afford to lose.
• Monitor your positions. It is important to monitor your positions regularly to ensure that you are not losing too much money. You can do this by clicking on the "Positions" tab.
• Set stop-loss orders. A stop-loss order is an order to sell your perpetual contract at a specified price. This can help you to limit your losses if the price of the perpetual contract moves against you.
• Take profits. It is important to take profits when you are in a winning position. You can do this by clicking on the "Close Position" button.