How to play CoinEx contract

To initiate contract trading on CoinEx, create an account, fund it, navigate to the "Contract" tab, select the desired contract, specify the order type, adjust leverage, monitor open positions, and manage risk with take-profit and stop-loss orders.

Dec 02, 2024 at 08:26 pm

How to Play CoinEx Contract: A Step-by-Step Guide

Step 1: Getting to Know the CoinEx Contract Trading Concept

What is contract trading?

Contract trading involves speculating on the price movements of an underlying asset, such as a cryptocurrency, without actually purchasing the asset. Instead, traders use contracts that track the value of the asset.

How does contract trading work on CoinEx?

On CoinEx, contract trading is facilitated through perpetual contracts. Perpetual contracts are contracts that have no set expiry date, allowing traders to maintain their positions for an indefinite period.

What is leverage?

Leverage is a tool that allows traders to increase their potential profits by borrowing funds from the platform. However, it also magnifies the potential losses, as traders can lose more than they initially invested.

Step 2: Opening a CoinEx Contract Trading Account

Creating a CoinEx account

Begin by creating a CoinEx account. This involves completing the registration process and verifying your identity.

Funding your account

To start contract trading, you need to fund your account with either cryptocurrencies or fiat currencies. CoinEx supports various deposit methods, including direct crypto deposits, fiat on-ramps, and third-party payment providers.

Step 3: Navigating the CoinEx Contract Trading Platform

Finding the contract trading tab

Once your account is funded, navigate to the "Contract" tab on the CoinEx website or mobile application.

Understanding the contract trading interface

The CoinEx contract trading interface displays various charts, order books, and trading tools. Familiarize yourself with the layout and functions of each component.

Step 4: Selecting the Right Contract

Choosing the underlying asset

CoinEx offers contracts for various cryptocurrencies. Select the contract that corresponds with the cryptocurrency you want to trade.

Understanding contract specifications

Each contract has its specifications, including tick size, leverage ratio, and funding rate. Review these specifications carefully to ensure you understand the trading conditions.

Step 5: Placing Orders and Managing Risk

Opening a position

To place an order, select the contract, specify the order type (Market, Limit, or Stop), enter the order size, and adjust the leverage as desired. Once the order parameters are set, confirm the order to enter the market.

Take-profit orders

A take-profit order allows you to close your position at a predetermined price target, locking in profits.

Stop-loss orders

A stop-loss order automatically closes your position when the price reaches a predetermined level, protecting you from excessive losses.

Step 6: Monitoring and Closing Positions

Tracking open positions

The CoinEx trading platform provides a section where you can monitor your open positions, including their current profit/loss, liquidation price, and other relevant metrics.

Closing positions manually

To close a position, navigate to the open positions section and click on the "Close" button for the desired position.

Step 7: Understanding Fees and Funding Rates

Trading fees

CoinEx charges trading fees for each contract traded. The fees vary based on the contract and the volume traded.

Funding rates

Perpetual contracts have funding rates that are paid by traders who hold long positions to traders who hold short positions or vice versa. The funding rate is designed to keep the contract price in line with the spot price.