How to play AscendEX delivery contract

AscendEX delivery contracts provide traders with a leveraged and flexible way to speculate on the future price movements of cryptocurrencies without directly owning the underlying assets.

Nov 27, 2024 at 02:30 am

Step 1: Understanding AscendEX Delivery Contracts

• AscendEX delivery contracts are derivative agreements whereby traders speculate on the future price of an underlying cryptocurrency asset.
• The primary objective is to profit from fluctuations in the underlying asset's value without directly purchasing the asset itself.
• These contracts are settled through the exchange of the underlying asset on a specified future date.

Step 2: Creating an AscendEX Account

• Visit the official AscendEX website and create a trading account.
• Provide accurate personal information and undergo the necessary KYC (Know Your Customer) verification process.
• Once verified, fund your trading account through supported payment methods, such as bank transfers, credit/debit cards, or cryptocurrencies.

Step 3: Navigating the Futures Market

• Locate the "Futures" section in the AscendEX trading platform.
• Choose the preferred trading pair (e.g., BTC/USDT, ETH/USDT).
• Familiarize yourself with the order book, trading chart, and other market data.

Step 4: Choosing a Contract Type

• AscendEX offers two types of delivery contracts: Perpetual and Quarterly.
• Perpetual contracts do not have a fixed expiry date and can be held indefinitely.
• Quarterly contracts expire on predetermined quarterly dates and are cash-settled upon expiration.

Step 5: Placing a Trade

• Decide on the contract size (quantity of the underlying asset) and the desired leverage (amount of borrowed capital).
• Select the "Buy" or "Sell" option depending on your market sentiment (bullish or bearish).
• Enter the limit price (desired execution price) and the stop price (price level where the order triggers a stop-loss or take-profit order).

Step 6: Managing Risk

• Determine the appropriate position size based on your trading capital and risk tolerance.
• Utilize stop-loss and take-profit orders to protect against potential losses and secure profits.
• Monitor the contract closely and adjust your position if necessary based on market conditions.

Step 7: Settlement of Contract

• Upon expiration of a Quarterly contract or when you close your Perpetual contract position, the exchange will deliver or take delivery of the underlying asset.
• The profit or loss is calculated based on the difference between the contract entry price and the settlement price.

Step 8: Understanding Margin and Leverage

• Margin refers to the collateral required to open a leveraged futures position.
• Leverage allows traders to amplify their trading potential by borrowing capital from the exchange.
• Higher leverage can lead to higher profits but also carries greater risk of losses.

Step 9: Market Analysis and Trading Strategy

• Develop a sound trading strategy based on technical or fundamental analysis.
• Monitor market trends, identify trading opportunities, and execute trades with precision.
• Learn risk management techniques, such as position sizing and stop-loss placement, to optimize profit potential while minimizing losses.

Step 10: Responsible Trading

• Never invest more than you can afford to lose.
• Thoroughly understand the risks involved in futures trading.
• Practice caution and seek professional advice if necessary before engaging in significant trades.