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How does the Deepcoin perpetual contract work?

Deepcoin's perpetual contract combines the flexibility of spot trading with the leverage of futures, allowing traders to take long or short positions on a variety of underlying assets without physical delivery.

Dec 01, 2024 at 03:57 am

How does the Deepcoin perpetual contract work?

Deepcoin offers a perpetual contract that allows traders to gain exposure to the price movements of an underlying asset without the need for physical delivery.

How does a perpetual contract differ from a futures contract?

Perpetual contracts differ from futures contracts in the following ways:

  • Perpetual contracts do not have an expiration date, so they can be held indefinitely.
  • Perpetual contracts are settled in cash, not physical delivery of the underlying asset.
  • The price of a perpetual contract is constantly fluctuating, based on the spot price of the underlying asset plus or minus a funding rate.

How does Deepcoin's perpetual contract work?

Deepcoin's perpetual contract is based on the following mechanics:

  • Margin: Traders must post margin to open and maintain a perpetual contract position. This acts as collateral to cover any potential losses.
  • Leverage: Traders can use leverage to increase their exposure to the price movements of an underlying asset. However, this also increases their risk of loss, as any losses are magnified by the leverage factor.
  • Funding rate: The funding rate is a small fee that is paid or received by traders, depending on the direction of the trade. It is designed to keep the price of the perpetual contract in line with the spot price of the underlying asset.

The steps involved in trading a perpetual contract:

  1. Open an account with Deepcoin.
  2. Fund your account with the desired amount of margin.
  3. Choose the underlying asset you wish to trade.
  4. Select the desired leverage level.
  5. Place a buy or sell order.
  6. Monitor your position and adjust as necessary.
  7. Close your position when you are ready to exit the trade.

Benefits of trading perpetual contracts with Deepcoin:

  • 24/7 trading: Deepcoin's perpetual contract is available to trade 24 hours a day, 7 days a week.
  • Low fees: Deepcoin offers competitive trading fees, making it an attractive option for frequent traders.
  • High leverage: Traders can use up to 100x leverage on Deepcoin's perpetual contract, allowing them to increase their potential returns.
  • Robust platform: Deepcoin's trading platform is user-friendly and offers a range of features to meet the needs of both beginners and experienced traders.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

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