How to play BingX u-based contract

With BingX's U-based contracts, traders can speculate on future asset prices without owning them, minimizing liquidation risk with settlement in USDT and Mark Price.

Nov 25, 2024 at 06:15 pm

How to Play BingX U-based Contract: A Comprehensive Guide

The U-based contract is a type of contract offered by BingX that allows traders to speculate on the future price of an underlying asset without actually owning it. This contract is settled in USDT, which is a stablecoin pegged to the US dollar.

BingX uses the Mark Price to determine the settlement price, which is calculated based on an aggregate of prices from multiple exchanges. This helps to reduce the risk of liquidation for traders, as the Mark Price is less volatile than the Spot Price.

Steps to Play BingX U-based Contract

1. Open an Account on BingX

To start trading U-based contracts on BingX, you will need to open an account. You can do this by visiting the BingX website and clicking on the "Register" button. You will need to provide your email address, create a password, and agree to the terms of service.

1. Fund Your Account

Once you have opened an account, you will need to fund it in order to start trading. You can do this by depositing USDT into your account. BingX supports a variety of deposit methods, including bank transfer, credit card, and cryptocurrency.

1. Choose a Trading Pair

BingX offers a variety of trading pairs for U-based contracts. You can choose the trading pair that you want to trade by clicking on the "Markets" tab.

1. Place an Order

Once you have chosen a trading pair, you can place an order to buy or sell the contract. You can do this by clicking on the "Buy" or "Sell" button. You will need to specify the quantity of the contract that you want to buy or sell, as well as the price at which you want to execute the order.

1. Monitor Your Position

Once you have placed an order, you can monitor your position by clicking on the "Positions" tab. This will show you the status of your open orders, as well as the profit or loss that you are currently experiencing.

1. Close Your Position

When you are ready to close your position, you can do this by clicking on the "Close" button. You will need to specify the quantity of the contract that you want to close, as well as the price at which you want to close it.

Tips for Trading U-based Contracts

• Use a Stop-Loss Order

A stop-loss order is an order that automatically sells your contract if the price drops to a certain level. This can help you to limit your losses if the market moves against you.

• Manage Your Risk

It is important to manage your risk when trading U-based contracts. You should only trade with money that you can afford to lose. You should also set a stop-loss order to protect yourself against large losses.

• Educate Yourself

It is important to educate yourself about U-based contracts before you start trading them. You should understand the risks involved, as well as the different trading strategies that you can use.

Conclusion

U-based contracts are a versatile trading instrument that can be used to speculate on the price of an underlying asset. By following the steps outlined in this guide, you can start trading U-based contracts on BingX today.