How does Poloniex play perpetual contracts?

To play perpetual contracts on Poloniex, create an account, fund it with cryptocurrency, select a contract, enter order details, monitor position, and close it with an opposite order.

Nov 23, 2024 at 08:48 pm

How does Poloniex play perpetual contracts?

Perpetual contracts are a type of derivative instrument that allows traders to speculate on the future price of an underlying asset without having to take physical delivery of the asset. They are similar to futures contracts, but there is no set expiration date for perpetual contracts. This means that traders can hold positions for as long as they want, and they can profit from both rising and falling prices.

Poloniex is a cryptocurrency exchange that offers a variety of perpetual contracts, including contracts for Bitcoin, Ethereum, Litecoin, and Ripple. To trade perpetual contracts on Poloniex, you need to first create an account and fund it with cryptocurrency. Once you have funded your account, you can see the list of perpetual contracts that are available for trading.

To create an order, you need to specify the contract that you want to trade, the order type, the order quantity, and the order price. There are two types of orders: market orders and limit orders. Market orders are executed immediately at the current market price, while limit orders are executed only when the market price reaches a specified level.

Once you have created an order, it will be placed in the order book. The order book is a list of all the orders that are currently open for a particular contract. When the market price reaches the price specified in your order, your order will be executed.

If you want to close your position, you need to create a new order that is opposite to the original order. For example, if you have a long position, you need to create a short order to close your position.

Perpetual contracts can be a profitable way to trade cryptocurrency, but they can also be risky. It is important to understand the risks involved before you start trading.

Steps about how to play perpetual contracts on Poloniex

1. Create an account and fund it with cryptocurrency. To create an account on Poloniex, you need to provide your email address and create a password. Once you have created an account, you need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency with a credit card or debit card.
2. Find the perpetual contract that you want to trade. Poloniex offers a variety of perpetual contracts, including contracts for Bitcoin, Ethereum, Litecoin, and Ripple. To find the contract that you want to trade, you need to go to the "Perpetual" tab on the Poloniex website.
3. Create an order. To create an order, you need to specify the contract that you want to trade, the order type, the order quantity, and the order price. There are two types of orders: market orders and limit orders. Market orders are executed immediately at the current market price, while limit orders are executed only when the market price reaches a specified level.
4. Monitor your position. Once you have created an order, it will be placed in the order book. The order book is a list of all the orders that are currently open for a particular contract. You can monitor your position by going to the "Orders" tab on the Poloniex website.
5. Close your position. If you want to close your position, you need to create a new order that is opposite to the original order. For example, if you have a long position, you need to create a short order to close your position.

Conclusion

Perpetual contracts can be a profitable way to trade cryptocurrency, but they can also be risky. It is important to understand the risks involved before you start trading