What time does KuCoin weekly contract deliver

KuCoin's weekly cryptocurrency contracts expire and settle every Friday at 8:00 AM UTC, resulting in the transfer of the underlying asset to the contract holders.

Nov 14, 2024 at 08:05 pm

What Time Does KuCoin Weekly Contract Deliver?

KuCoin, a leading cryptocurrency exchange, offers a wide range of trading options for both spot and futures markets. One of the most popular offerings on KuCoin is the weekly contract, which allows traders to speculate on the future price of an underlying asset.

Weekly contracts on KuCoin expire and settle every Friday at 8:00 AM UTC. This means that if you hold a weekly contract at the time of expiry, you will receive or deliver the underlying asset, depending on whether you have a long or short position, respectively.

FAQs About KuCoin Weekly Contract Delivery

Q: What is the exact time of KuCoin weekly contract delivery?

A: KuCoin weekly contracts expire and settle every Friday at 8:00 AM UTC.

Q: What happens when a weekly contract expires?

A: When a weekly contract expires, it is settled in the underlying asset. This means that if you have a long position, you will receive the underlying asset, and if you have a short position, you will deliver the underlying asset.

Q: How long do weekly contracts last for?

A: Weekly contracts on KuCoin expire on the nearest Friday from the date of purchase.

Q: What are the risks associated with trading KuCoin weekly contracts?

A: As with any derivative instrument, there are risks associated with trading KuCoin weekly contracts. These risks include but are not limited to:

• Risk of losing money: You can lose money trading KuCoin weekly contracts, even if you have a winning trade. The price of the underlying asset can fluctuate significantly, and if the price moves against you, you could lose your entire investment.
• Risk of losing money in case of liquidation: When you open a weekly contract, you are required to post collateral, such as money or cryptocurrency, to cover your possible losses. Your collateral is at risk of being liquidated if the price of the underlying asset moves against you, and you do not have time to close your position or add more collateral. The target price that triggers the liquidation of your position, commonly referred to as the liquidation price, will vary depending on market condition and funding rate.
• Risk of no one taking the other side of the order: During moderate to extreme market volatility, the market depth can be very thin. This can mean that you may have difficulties entering or exiting a trade at a desirable price, especially if the direction of the market moves strongly against you.

Q: How can I minimize the risks associated with trading KuCoin weekly contracts?

A: There are a number of steps you can take to minimize the risks associated with trading KuCoin weekly contracts, including:

1. Understanding the risks: The first step to managing risk is to understand the risks involved. Make sure you understand the terms of the weekly contract, including the expiration date, the underlying asset, and the margin requirements.
2. Start with a small account: When you're first starting out, it's a good idea to start with a small account. This will help you to limit your potential losses.
3. Proper position sizing: Make sure to properly size your positions, The value of your collateral should generally be more than 2x the size of your position to minimize the risk of forced liquidation.
4. Hedging your risks: You can also hedge your risks by taking opposite positions in different contracts. This will help to reduce your exposure to risk.
5. Diversify your trading: Don't put all your eggs in one basket. Diversify your trading by trading multiple different weekly contracts.
6. Use stop-loss orders: A stop-loss order is a type of order that helps to limit your losses. A stop-loss order will automatically sell your contract if the price of the underlying asset falls below a certain level.
7. Don't trade on margin: Margin trading can amplify your profits as well as your losses, making margin trading a tool for more advanced traders. Only trade on margin if you fully understand the risks involved.