How to sell BigONE perpetual contract

To sell a perpetual contract on BigONE, traders must select the contract, determine order parameters, place the order, monitor its execution, and implement risk management strategies.

Nov 27, 2024 at 12:08 pm

How to Sell BigONE Perpetual Contract

Selling a perpetual contract on BigONE involves a series of steps designed to execute the sale order effectively. These steps encompass various aspects, including selecting the contract, setting the order parameters, and monitoring the order's execution. This comprehensive guide provides a detailed walkthrough of each step, empowering traders with the knowledge to confidently sell perpetual contracts on BigONE.

Step 1: Select the Perpetual Contract

The initial step towards selling a perpetual contract on BigONE is selecting the desired contract. BigONE offers an array of perpetual contracts, catering to various underlying assets and trading preferences. Traders should carefully consider their trading objectives, risk tolerance, and market conditions when selecting the appropriate contract.

To initiate the selection process, navigate to the BigONE trading interface and locate the "Perpetual" tab. This section presents a comprehensive list of available perpetual contracts, each defined by its underlying asset, leverage options, and contract specifications.

Traders can utilize various filters to narrow down their search and identify contracts that align with their trading strategies. Filters include underlying asset (e.g., BTC, ETH, BNB), leverage level (e.g., 10x, 20x, 50x), and contract type (e.g., Standard, Inverse).

Once a suitable contract is identified, click on its name to access detailed information. This includes historical price data, market depth, and order book information. Traders can leverage this information to assess market conditions and make informed decisions regarding their sell order.

Step 2: Set the Order Parameters

After selecting the perpetual contract, traders proceed to set the order parameters. This involves specifying the type of order, quantity, and price at which they wish to sell the contract. BigONE offers a range of order types, each tailored to specific trading needs:

• Limit Order: A limit order allows traders to specify a specific price at which they want to sell the contract. The order will only be executed if the market price reaches or exceeds the specified limit price.
• Market Order: A market order instructs the exchange to sell the contract at the best available market price. Market orders are typically executed quickly, but the execution price may vary depending on market conditions.
• Stop Order: A stop order is a contingent order that becomes active when a specified trigger price is reached. It allows traders to place sell orders above or below the current market price, which can be useful for executing trades at a predefined profit target or stop-loss level.

Traders should also specify the quantity of the contract they wish to sell. BigONE typically displays the minimum and maximum allowable quantities for each contract.

Finally, traders need to set the price at which they want to sell the contract. For limit orders, they can enter the desired price manually. For market orders, the system will automatically fill the order at the best available market price.

Step 3: Place the Sell Order

Once the order parameters are set, traders can proceed to place the sell order on BigONE. To do this, click on the "Sell" button located in the order entry panel. A confirmation window will appear, summarizing the order details. Traders should review the order information carefully before clicking "Confirm" to place the order.

The order will be submitted to the exchange and added to the order book. Traders can monitor the status of their order by navigating to the "My Orders" section of the BigONE trading interface.

Step 4: Monitor the Order Execution

After placing the sell order, traders should monitor its execution closely. The order book provides real-time updates on the status of the order, including its current position in the queue, the number of contracts filled, and the average execution price.

Traders can also track the price of the perpetual contract to determine if it is moving in a favorable direction. If the market price is moving against their desired sell price, they may consider adjusting the order parameters or canceling the order altogether.

Step 5: Manage Risk

Risk management is a crucial aspect of selling perpetual contracts. Traders should implement appropriate risk management strategies to mitigate potential losses. This includes setting stop-loss orders, using leverage judiciously, and monitoring market conditions closely.

Stop-loss orders allow traders to automatically exit a trade when the market price reaches a predefined level, limiting potential losses. Traders should carefully consider the placement of stop-loss orders to ensure they align with their risk tolerance and trading strategy.

Leverage can amplify both profits and losses. While using leverage can enhance returns, it also magnifies potential losses. Traders should use leverage cautiously and only to the extent that their risk tolerance and financial situation allow.

Regularly monitoring market conditions allows traders to stay abreast of market trends and make informed decisions. Traders should pay attention to news and events that could impact the price of the underlying asset and adjust their trading strategies accordingly.