How to open high multiple contracts with ProBit Global

To open high multiple contracts on ProBit Global, traders must register for an account, fund it, select the desired pair, specify trading parameters, and place an order while being aware of the associated risks.

Dec 01, 2024 at 12:05 pm

How to Open High Multiple Contracts with ProBit Global

Overview

High multiple contracts, also known as perpetual contracts or inverse futures, are popular derivative instruments that allow traders to speculate on the price of cryptocurrencies with leverage. ProBit Global offers various high multiple contracts with up to 100x leverage, providing traders with the opportunity to maximize potential profits or losses. Understanding how to open high multiple contracts on ProBit Global is essential for effective trading.

Prerequisites

Before opening high multiple contracts on ProBit Global, traders need to fulfill certain requirements:

1. Create a ProBit Global Account: Register for a ProBit Global account and complete the KYC verification process.
2. Fund Your Account: Deposit funds into your ProBit Global account to cover the initial margin and trading fees. Supported deposit methods include cryptocurrency, credit/debit cards, and bank transfers.

Opening High Multiple Contracts

To open a high multiple contract on ProBit Global, follow these steps:

1. Navigate to the Trading Page: Log in to your ProBit Global account and click on "Trade" from the top menu.
2. Select the Contract: Choose the desired high multiple contract from the list of available pairs. The contract name typically includes the underlying cryptocurrency, such as BTC-USDT-PERP for Bitcoin perpetual contracts.
3. Set the Trading Parameters: Specify the contract size (number of underlying contracts), leverage (10x, 20x, 50x, or 100x), and position direction (long or short).
4. Calculate the Margin Requirement: ProBit Global automatically displays the margin requirement based on the selected trading parameters. Ensure you have sufficient funds in your account to cover the margin.
5. Place the Order: Click on "Buy" or "Sell" to place the order. The order will be executed at the prevailing market price.

Advantages of High Multiple Contracts

• Leverage: High multiple contracts offer high leverage, allowing traders to amplify their potential profits with a smaller initial investment.
• Flexibility: Traders can take both long and short positions, enabling them to profit from price increases or decreases.
• No Expiry: Unlike futures contracts, perpetual contracts have no expiry date, providing traders with flexibility in holding their positions.

Risks of High Multiple Contracts

• Enhanced Volatility: Leverage magnifies both profits and losses. Traders should be aware of the increased volatility associated with high leverage contracts.
• Margin Calls: If the market moves against your position and the margin requirement exceeds your account balance, you may be subject to a margin call and potential liquidation.
• Tax Implications: The tax treatment of high multiple contracts varies depending on jurisdiction. Traders should consult with a tax professional for guidance.

Conclusion

Opening high multiple contracts on ProBit Global is a straightforward process, but it requires careful consideration of the risks involved. By understanding the benefits and limitations of these instruments, traders can minimize losses and maximize potential gains.