Getting Started with ProBit Global Contract Trading

ProBit Global's contract trading platform empowers beginners to speculate on crypto asset price movements without asset ownership, offering the choice between perpetual and futures contracts tailored to their trading preferences.

Nov 28, 2024 at 06:46 am

Getting Started with ProBit Global Contract Trading: A Comprehensive Guide for Beginners

ProBit Global, a renowned cryptocurrency exchange, offers a robust platform for contract trading, enabling users to speculate on the price movements of various crypto assets without owning them. This beginner-friendly guide empowers you to navigate the intricacies of ProBit Global's contract trading platform effectively.

Step 1: Register and Verify Your ProBit Global Account

Registering for a ProBit Global account is a simple process. Visit the official website, click "Sign Up," and follow the instructions. Ensure you provide accurate personal information and complete the verification process to enhance your account security and unlock the full range of trading features.

Step 2: Fund Your Account

To initiate contract trading, you must fund your ProBit Global account with supported cryptocurrencies like BTC, ETH, and USDT. Deposits can be made via fiat currencies using credit/debit cards or through crypto transfers from external wallets or exchanges.

Step 3: Choose a Preferred Contract Type

ProBit Global offers two contract types: perpetual contracts and futures contracts.

• Perpetual contracts: These are popular for their sustained trading with no fixed expiration date. They enable traders to hold positions indefinitely until they decide to close them.
• Futures contracts: Unlike perpetual contracts, futures contracts have a predetermined expiration date. Traders must close their positions before the expiration date to avoid potential losses.

Step 4: Understand Contract Specifications

Before engaging in contract trading, it's crucial to grasp the underlying specifications of each contract, including:

• Underlying asset: The cryptocurrency or token that the contract references. Examples include BTC, ETH, and DOT.
• Contract value: The current value of the underlying asset multiplied by the contract size. This value fluctuates based on market conditions.
• Contract size: The predetermined amount of the underlying asset held by the contract. For instance, a BTC contract with a size of 0.01 BTC represents 0.01 Bitcoin.
• Tick size: The minimum price change a contract can experience. Smaller tick sizes offer greater precision in order execution.

Step 5: Familiarize Yourself with Contract Margin

Margin trading involves leveraging funds to amplify your trading positions. Before leveraging, it's essential to grasp key concepts:

• Initial margin: The minimum amount of funds required to open a leveraged position. It serves as collateral to mitigate potential losses.
• Maintenance margin: The minimum margin level that must be maintained to keep a position open. Falling below this level could trigger a margin call, forcing you to add funds or liquidate your position.

Step 6: Choose an Order Type

ProBit Global offers various order types to cater to different trading strategies:

• Limit order: Allows you to specify the desired execution price for your order. It only executes when the market price reaches your specified level.
• Market order: Executes your order instantly at the current best price available in the market.
• Stop order: A conditional order that triggers an entry or exit when the market price crosses a specific level.

Step 7: Analyze Market Conditions

Before placing a trade, conduct thorough market analysis to identify potential opportunities and assess risks.

• Technical analysis: Study historical price charts and patterns to forecast price movements and identify trading setups.
• Fundamental analysis: Evaluate broader market trends, news, and economic indicators to understand factors influencing crypto asset prices.

Step 8: Manage Risk Effectively

Contract trading carries inherent risks. To mitigate potential losses:

• Set stop-loss orders to automatically close your positions if prices move against you, limiting potential losses.
• Position sizing: Determine the appropriate contract size based on your risk tolerance and account balance.
• Diversify your portfolio: Spread your investments across different contracts to minimize the impact of any single asset's performance.

Step 9: Withdraw Funds and Profits

Once you close your contract positions, you can withdraw your funds and profits. Navigate to the "Withdraw" section on the ProBit Global platform and follow the instructions to initiate a withdrawal.