How to sell AscendEX perpetual contract

Selling a perpetual contract on AscendEX requires understanding the contract, selecting the right one, funding your account, placing a sell order, monitoring your position, closing it at a favorable price, and managing risk effectively.

Nov 28, 2024 at 12:16 pm

How to Sell AscendEX Perpetual Contract

Selling a perpetual contract on AscendEX involves several crucial steps. Follow these comprehensive instructions to effectively sell your contract:

1. Understand Perpetual Contracts

• Perpetual contracts are derivative financial instruments that allow traders to speculate on the future price of an asset without an expiration date.
• They can be traded with leverage, which amplifies potential gains and losses, making them suitable for both experienced and sophisticated traders.

2. Select the Right Contract

• AscendEX offers perpetual contracts on various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and other popular altcoins.
• Research and choose the contract that aligns with your trading strategy, risk tolerance, and market outlook.

3. Fund Your Account

• Before selling a perpetual contract, you must have sufficient funds in your AscendEX account.
• Deposit cryptocurrencies or fiat currencies to cover the required margin. Margin is a deposit required to open a leveraged position.

4. Place a Sell Order

• Navigate to the "Perpetual" tab on AscendEX and select the desired contract.
• Choose "Short" to sell the contract. Shorting involves profiting from a price decline.

• Enter the following information:

  • Quantity: Specify the contract size you wish to sell.
  • Price: Set a limit price or market price for your short position.
  • Leverage: Determine the leverage you wish to apply, which multiplies your risk and potential returns.

5. Monitor Your Position

• After placing your sell order, monitor its status in the "Open Positions" section.
• The position will remain open until it is closed or liquidated by the exchange due to insufficient margin.
• Keep an eye on market fluctuations and adjust your position as needed to mitigate risk.

6. Close Your Position

• To close your short position, place a "Buy" order of the same contract with an equivalent quantity and at a price that yields a favorable profit.
• You can also close your position partially or fully, depending on your trading strategy.
• Closing your position at a higher price than your sell order will result in a profit, while closing at a lower price will incur a loss.

7. Withdraw Profits

• Once you close your position successfully, your profits will be credited to your AscendEX account.
• You can withdraw your profits or use them for further trading.

Additional Considerations:

• Margin Calls: Margin calls occur if your account equity falls below a certain level, typically around 20%. In this case, AscendEX may liquidate your position to reduce risk.
• Funding Rates: Perpetual contracts automatically adjust their price based on funding rates, which are paid by or to traders to align the contract price with the spot price.
• Risk Management: AscendEX offers built-in stop-loss and take-profit orders to help manage risk. Utilize these features to protect your capital in case of adverse market conditions.