How to play Upbit contract trading

To engage in contract trading on Upbit, you first establish an account, fund it, select a trading pair, place an order, diligently monitor your position, then execute a closing order when appropriate.

Nov 08, 2024 at 02:48 pm

How to Play Upbit Contract Trading

Introduction

Upbit is a South Korean cryptocurrency exchange that offers a variety of trading options, including contract trading. Contract trading is a type of derivatives trading that allows traders to speculate on the future price of an underlying asset, such as Bitcoin or Ethereum.

Step 1: Open an Account

• The first step in order to play Upbit contract trading is to create an account at Upbit.
• You will need to provide some personal information, such as your name, email address, and date of birth.
• Once you have created an account, you will need to verify your identity by providing a government-issued ID.

Step 2: Fund Your Account

• Once your account has been verified, you will need to fund your account in order to begin trading.
• Upbit accepts a variety of deposit methods, including bank wire, credit card, and cryptocurrency.

Step 3: Choose a Trading Pair

• The next step is to choose a trading pair.
• Upbit offers a variety of trading pairs, including BTC/USDT, ETH/USDT, and XRP/USDT.

Step 4: Place an Order

• Once you have chosen a trading pair, you can place an order.
• Upbit offers a variety of order types, including market orders, limit orders, and stop orders.

Step 5: Monitor Your Position

• Once you have placed an order, you will need to monitor your position.
• You can do this by viewing the "Positions" tab in your account.

Step 6: Close Your Position

• When you are ready to close your position, you can do so by placing a closing order.
• You can place a closing order at any time, but you will need to pay a fee if you close your position before the expiration date.

Tips for Trading Upbit Contracts

• Use a stop-loss order. A stop-loss order is a type of order that automatically sells your position if the price of the underlying asset falls below a certain level. This can help to protect you from losing money if the market moves against you.
• Set a profit target. A profit target is a price at which you want to sell your position for a profit. This can help you to lock in your profits and avoid giving them back to the market.
• Be aware of the risks. Contract trading is a risky activity and you can lose all of your money. It is important to understand the risks before you start trading.

Conclusion

Upbit contract trading is a complex and potentially rewarding activity. By following the steps outlined in this guide, you can increase your chances of success.