How to play AscendEX u-based contract

U-based contracts on AscendEX provide enhanced risk management, leverage options, and perpetual duration, offering unique advantages for experienced traders seeking greater flexibility in cryptocurrency trading.

Nov 25, 2024 at 12:33 pm

How to Play AscendEX U-Based Contract: A Comprehensive Guide

Understanding U-Based Contracts

U-based contracts are a type of perpetual contract that is unique to AscendEX. They offer several advantages over traditional perpetual contracts, including:

• Reduced risk of liquidation: U-based contracts use a margin system that is based on the underlying asset, rather than on the contract value. This means that traders are less likely to be liquidated during periods of high volatility.
• Higher leverage: U-based contracts allow traders to trade with up to 100x leverage, which can significantly amplify both profits and losses.
• No expiration date: U-based contracts do not have an expiration date, so traders can hold them for as long as they want without having to worry about rolling them over.

How to Open a U-Based Contract Position on AscendEX

1. Log into your AscendEX account and navigate to the "Contracts" section.
2. Select the contract you want to trade and click on "Trade."
3. Choose "U-based" from the contract type drop-down menu.
4. Enter the order quantity and the leverage you want to use.
5. Click on "Buy Long" or "Sell Short" to open the position.

Managing Your U-Based Contract Position

Once you have opened a U-based contract position, you need to manage it carefully to maximize your profits and minimize your losses. Here are some tips:

• Set stop-loss and take-profit orders: This will help you to protect your profits and limit your losses.
• Monitor the market: Keep an eye on the price of the underlying asset and the funding rate. This will help you to make informed decisions about when to close your position.
• Adjust your leverage: If the market is moving in your favor, you may want to increase your leverage to amplify your profits. However, if the market is moving against you, you may want to reduce your leverage to minimize your losses.
• Close your position: When you are ready to close your position, click on the "Close Position" button. You will then need to confirm the order.

Risks of Trading U-Based Contracts

U-based contracts offer a number of advantages, but they also come with some risks. Here are some things to consider before trading U-based contracts:

• High volatility: The underlying asset of a U-based contract can be highly volatile, which can lead to significant losses.
• Margin trading: Margin trading is inherently risky, and you can lose more money than you originally invested.
• Funding rate: U-based contracts have a funding rate that can be positive or negative. This can affect your profits or losses.

Conclusion

U-based contracts are a powerful tool that can be used to trade cryptocurrencies with leverage. However, it is important to understand the risks involved before trading U-based contracts. By following the steps outlined in this guide, you can increase your chances of success when trading these contracts.