How to play CoinW delivery contracts

CoinW delivery contracts, or futures contracts, enable traders to speculate on future cryptocurrency prices without owning the underlying asset, with cash settlements based on contract size variations.

Nov 13, 2024 at 11:15 pm

How to Play CoinW Delivery Contracts: A Comprehensive Guide

Overview

CoinW delivery contracts, also known as futures contracts, allow traders to speculate on the future price of cryptocurrencies without actually owning the underlying asset. These contracts are settled in cash, meaning that traders receive or pay the difference between the opening and closing price multiplied by the contract size.

What are the Different Types of Delivery Contracts?

There are two main types of delivery contracts: perpetual contracts and quarterly contracts.

• Perpetual Contracts: These contracts have no fixed expiration date and can be traded continuously. They are typically used for short-term speculation and have a lower trading fee compared to quarterly contracts.
• Quarterly Contracts: These contracts expire every three months and are settled on a specific date. They are typically used for longer-term speculation and have a higher trading fee compared to perpetual contracts.

How do I Get Started with Delivery Contracts?

To get started with delivery contracts, you will need to:

1. Open an Account with CoinW: Create an account on the CoinW exchange and complete the necessary verification steps.
2. Fund Your Account: Deposit funds into your CoinW account using one of the supported methods, such as crypto transfer, bank wire, or credit card.
3. Choose a Trading Pair: Select the cryptocurrency pair that you wish to trade, such as BTC/USDT or ETH/USDT.
4. Open a Position: Enter the contract size and leverage that you wish to trade and click the "Buy" or "Sell" button to open a position.

How do I Close a Position?

To close a position, you can either:

1. Take Profit: Close the position at a profit by clicking the "Take Profit" button.
2. Stop Loss: Close the position at a loss by clicking the "Stop Loss" button.
3. Manual Execution: Close the position manually by clicking the "Close Position" button.

What are the Risks of Delivery Contracts?

Delivery contracts can be risky and it is important to understand the risks involved before trading. Some of the risks include:

• Price Fluctuations: The price of cryptocurrencies can fluctuate rapidly, which can lead to losses or gains.
• Leverage: Trading with leverage can amplify both profits and losses.
• Liquidation: If the market moves against you, your position may be liquidated, resulting in the loss of your entire investment.

Tips for Trading Delivery Contracts

Here are some tips to help you succeed in delivery contract trading:

• Understand the Market: Research the cryptocurrency market and understand the factors that affect price movements.
• Start Small: Start trading with a small amount of capital that you can afford to lose.
• Use Stop-Loss Orders: Place stop-loss orders to limit your losses in case the market moves against you.
• Manage Your Risk: Calculate your risk tolerance and trade accordingly.
• Practice on a Demo Account: Open a demo account to practice trading delivery contracts without risking real funds.