How to lock positions in AscendEX contracts

By locking positions in AscendEX contracts, traders can mitigate risk, protect profits, and maintain flexibility in navigating market volatility.

Nov 23, 2024 at 11:18 am

How to Lock Positions in AscendEX Contracts

Introduction:

Effective position management is crucial in futures trading, and locking positions is a valuable strategy for mitigating risk and securing profits. AscendEX, a leading cryptocurrency exchange, offers a comprehensive suite of futures trading tools, including the ability to lock positions. This guide will provide a detailed explanation of how to lock positions in AscendEX contracts, empowering traders with the knowledge and skills to navigate the futures market strategically.

Requirements:

• An AscendEX account with adequate funds
• Open futures contract positions
• Understanding of futures trading concepts

Steps:

1. Select the Desired Contract:

a) Log in to your AscendEX account and navigate to the Futures Trading page.
b) Choose the desired trading pair and contract type (e.g., perpetual or futures).
c) Ensure you have open positions in the selected contract.

2. Access the Position Locking Feature:

a) On the Futures Trading page, locate the "Position" section, where your open positions are listed.
b) Click on the "Lock" icon associated with the position you want to lock.

3. Determine the Locking Parameters:

a) In the "Lock Position" panel, specify the "Lock Portion" as a percentage of the current position.
b) Set the "Lock Price" at which you want to lock your profit or limit your loss.

4. Confirm the Lock:

a) Review the position details and ensure the locking parameters align with your trading strategy.
b) Click the "Confirm" button to execute the lock.

5. Monitor the Locked Position:

a) The locked portion of the position will be displayed in the "Locked Position" section.
b) The locked portion is temporarily removed from trading, protecting against price fluctuations.
c) The unlocked portion remains active, allowing for further trading and adjustments.

6. Unlock the Position (Optional):

a) If desired, you can unlock the locked portion by clicking the "Unlock" icon.
b) The unlocked portion will become available for trading, allowing you to adjust your strategy.

Advantages of Position Locking:

• Risk Mitigation: Locking positions reduces exposure to potential losses, especially during periods of market volatility.
• Profit Protection: Traders can lock in profits by setting a lock price above their entry point, preventing potential reversals.
• Strategic Trading: Position locking allows traders to maintain exposure to market movements while managing risk and securing profits.
• Enhanced Flexibility: The ability to lock and unlock positions provides traders with greater flexibility in adapting to changing market conditions.

Considerations:

• Locking Fees: AscendEX may charge locking fees based on the Locked Portion and the duration of the lock.
• Impermanent Loss: If the market price moves significantly beyond the Lock Price, traders may incur impermanent losses by locking their positions.
• Reduced Trading Volume: Locked positions are temporarily removed from trading, which can affect the overall trading volume and liquidity.