How to play Bithumb currency-standard contract

To delve into currency-standard contracts on Bithumb, traders must first grasp the fundamentals of perpetual contracts, which provide exposure to asset price fluctuations without requiring physical delivery or having an expiry date.

Nov 21, 2024 at 06:31 am

How to Play Bithumb Currency-Standard Contract

1. Understand the Basics

Before delving into the intricacies of currency-standard contracts on Bithumb, it's imperative to establish a firm understanding of the underlying concepts. These contracts, also known as perpetual contracts, offer traders a unique opportunity to gain exposure to the price fluctuations of an underlying asset without the need for physical delivery. They replicate the behavior of futures contracts but lack an expiry date, allowing traders to maintain their positions indefinitely.

2. Choose a Trading Pair

The next step involves selecting a trading pair. Bithumb offers a diverse range of trading pairs, encompassing popular cryptocurrencies such as Bitcoin, Ethereum, and Ripple. When choosing a trading pair, consider factors like market liquidity, volatility, and your risk tolerance.

3. Determine Contract Size

Each currency-standard contract represents a specific amount of the underlying asset. On Bithumb, contract sizes vary depending on the chosen trading pair. It's recommended to start with a smaller contract size to minimize potential losses.

4. Leverage and Margin

Currency-standard contracts allow traders to employ leverage, which is essentially borrowing funds from the exchange to increase their trading power. However, it's crucial to use leverage judiciously as it can both magnify profits and losses. Bithumb also requires traders to maintain a minimum margin in their accounts to cover potential price fluctuations.

5. Open a Position

Once you've selected a trading pair, contract size, and leverage, you can open a position. Bithumb provides two order types: Limit orders, which allow you to set a specific price at which you want to enter or exit a trade, and Market orders, which execute trades immediately at the current market price.

6. Monitor and Manage Risk

After opening a position, it's essential to continuously monitor its performance and manage your risk exposure. Bithumb offers a range of risk management tools, such as stop-loss orders and take-profit orders, to help you protect your capital.

7. Close a Position

To close a position, simply execute a trade of equal size but opposite direction to your current position. You can either close a portion of your position or exit the entire trade.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

ARDR

$0.1145

32.04%

Trade Now
KEEP

$0.1082

31.79%

Trade Now
TRUMP

$12.1651

31.52%

Trade Now
B3

$0.0049

27.61%

Trade Now
FTT

$1.0202

18.87%

Trade Now
NMR

$9.5542

17.81%

Trade Now

Latest Crypto News

Analysts say Trump's import tariffs expose vulnerabilities in the US bond market, highlighting Bitcoin's unique economic properties
2025-04-24 22:20:12
PEPE pulls back 5% after hitting resistance near $0.00000936. Whale accumulation hints at a potential recovery toward $0.00001025 and possibly $0.00001584.
2025-04-24 22:20:12
Bitcoin (BTC) dominance as a haven within crypto may be up for debate, but within crypto it's hardly questionable
2025-04-24 22:15:12
Record Profit Surge: Revolut Doubles Annual Earnings to $1.3 Billion
2025-04-24 22:15:12
XRP Ledger Faced a Major Security Breach Involving xrpl.js JavaScript Library
2025-04-24 22:10:13
Trump's Meme Coin Soars 70% After Exclusive Investor Dinner Announcement
2025-04-24 22:10:13

Related knowledge

How does Tail Protection reduce the loss of liquidation?

Apr 11,2025 at 01:50am

Introduction to Tail Protection in CryptocurrencyTail Protection is a mechanism designed to mitigate the risks associated with liquidation in cryptocurrency trading. Liquidation occurs when a trader's position is forcibly closed by the exchange due to insufficient margin to cover potential losses. This often happens in leveraged trading, where traders b...

What are the consequences of an imbalance in the long-short ratio?

Apr 13,2025 at 02:50pm

The long-short ratio is a critical metric in the cryptocurrency trading world, reflecting the balance between bullish and bearish sentiments among traders. An imbalance in this ratio can have significant consequences on the market dynamics, affecting everything from price volatility to trading strategies. Understanding these consequences is essential fo...

How to judge the market trend by the position volume?

Apr 11,2025 at 02:29pm

Understanding how to judge the market trend by position volume is crucial for any cryptocurrency trader. Position volume, which refers to the total number of open positions in a particular cryptocurrency, can provide valuable insights into market sentiment and potential price movements. By analyzing this data, traders can make more informed decisions ab...

Why does a perpetual contract have no expiration date?

Apr 09,2025 at 08:43pm

Perpetual contracts, also known as perpetual futures or perpetual swaps, are a type of derivative product that has gained significant popularity in the cryptocurrency market. Unlike traditional futures contracts, which have a fixed expiration date, perpetual contracts do not expire. This unique feature raises the question: why does a perpetual contract ...

Why is the full-position mode riskier than the position-by-position mode?

Apr 13,2025 at 03:42pm

Why is the Full-Position Mode Riskier Than the Position-by-Position Mode? In the world of cryptocurrency trading, the choice between full-position mode and position-by-position mode can significantly impact the risk profile of a trader's portfolio. Understanding the differences between these two modes is crucial for making informed trading decisions. Th...

How is the liquidation price calculated?

Apr 12,2025 at 01:35am

Introduction to Liquidation PriceLiquidation price is a critical concept in the world of cryptocurrency trading, particularly when dealing with leveraged positions. Understanding how this price is calculated is essential for traders to manage their risk effectively. The liquidation price is the point at which a trader's position is forcibly closed by th...