How to play contracts on Upbit

Playing contracts on Upbit involves trading on perpetual futures, offering advantages like leverage, margin trading, and hedging options for astute traders.

Nov 22, 2024 at 02:08 pm

How to Play Contracts on Upbit: A Comprehensive Guide

Introduction

Upbit is a renowned cryptocurrency exchange that provides users with a wide range of trading options, including the ability to trade contracts. Contracts, also known as perpetual futures, are financial instruments that allow traders to speculate on the future value of underlying assets without actually owning the underlying asset.

Playing contracts on Upbit offers numerous advantages, such as the ability to leverage your positions, trade with margin, and hedge your investments. However, it's important to understand the risks involved and proceed with caution. This comprehensive guide will provide you with a step-by-step explanation of how to play contracts on Upbit, ensuring a safe and rewarding trading experience.

Step 1: Create an Upbit Account

• Visit the official Upbit website (upbit.com) and click on "Sign Up."
• Fill out the required information, including your email address, password, and phone number.
• Verify your email address and phone number by following the instructions provided.
• Once your account is verified, you can access the Upbit dashboard.

Step 2: Fund Your Account

• To trade contracts on Upbit, you need to fund your account with cryptocurrency.
• Click on "Deposit" in the top right corner of the Upbit dashboard.
• Select the cryptocurrency you want to deposit and follow the instructions provided.
• Once your deposit is processed, it will be added to your Upbit wallet.

Step 3: Understand Contract Basics

• Contracts are financial instruments that track the price of underlying assets, such as Bitcoin or Ethereum.
• Contracts can be either long or short. A long contract represents a bullish position, while a short contract represents a bearish position.
• When you trade contracts, you're not actually buying or selling the underlying asset. Instead, you're agreeing to exchange the difference in value between the current price and the price at which the contract expires.

Step 4: Choose a Trading Pair

• Upbit offers a wide range of contract trading pairs, including BTC/USDT, ETH/USDT, and SOL/USDT.
• Choose a trading pair based on your market analysis and trading strategy.
• For example, if you're bullish on Bitcoin, you could choose the BTC/USDT trading pair.

Step 5: Place an Order

• Once you've selected a trading pair, click on "Contracts" in the top menu.
• Choose whether you want to place a long or a short order.
• Enter the quantity of contracts you want to trade and the order type.
• Click on "Buy" or "Sell" to place your order.

Step 6: Manage Your Position

• Once your order is executed, you can monitor its performance in the "Open Orders" tab.
• You can also adjust your position by placing additional orders or reducing the size of your existing position.
• It's important to manage your risk by setting stop-loss orders and taking profits.

Step 7: Close Your Position

• When you're ready to close your position, click on "Close Position" in the "Open Orders" tab.
• You can choose to close your position at the current market price or at a specific price.
• Once your position is closed, the profit or loss will be added to or deducted from your account balance.