Trading KuCoin contracts Explanation

Understanding different types of KuCoin contracts, from perpetual contracts with no fixed expiry to quarterly contracts with set expiration dates, empowers traders to choose the most suitable instruments for their strategies.

Nov 10, 2024 at 01:25 pm

Trading KuCoin Contracts: A Comprehensive Guide

KuCoin, one of the leading cryptocurrency exchanges, offers a wide range of trading options, including contract trading. Contract trading involves using futures contracts, which are agreements to buy or sell a specific cryptocurrency at a predetermined price and time in the future. This guide will provide a comprehensive overview of trading KuCoin contracts, including the different types of contracts available, the trading process, and the risks associated with contract trading.

Types of KuCoin Contracts

KuCoin offers two main types of contracts: perpetual contracts and quarterly contracts.

• Perpetual contracts are contracts that have no fixed expiry date. They can be held for as long as desired, and the price is continuously marked to the spot price of the underlying cryptocurrency.
• Quarterly contracts have a fixed expiry date, which is typically three months from the date of listing. The price of the contract is determined by the spot price of the underlying cryptocurrency at the time of expiry.

Trading Process

To trade KuCoin contracts, you will first need to create an account on the KuCoin website or mobile app. Once you have created an account, you will need to fund your account with cryptocurrency.

To trade a contract, you will need to select the contract you want to trade, specify the quantity of the contract, and then place an order. You can place a buy order if you believe the price of the contract will rise, or a sell order if you believe the price of the contract will fall.

Once you have placed an order, it will be filled at the best available price. The price of the contract will fluctuate depending on the supply and demand in the market. If the price of the contract moves in your favor, you will make a profit. If the price of the contract moves against you, you will lose money.

Risks of Contract Trading

Contract trading is a leveraged product, which means that you can lose more money than you invested. The leverage provided by contracts can amplify both your profits and your losses.

It is important to carefully consider the risks involved in contract trading before you start trading. You should only trade with money that you can afford to lose.

Steps to Trade KuCoin Contracts:

1. Create a KuCoin account: To start trading KuCoin contracts, you will first need to create an account on the KuCoin website or mobile app. You can sign up for a free account by providing your email address and creating a password.
2. Fund your account: Once you have created an account, you will need to fund your account with cryptocurrency. You can deposit cryptocurrency into your KuCoin account by clicking on the "Deposit" button on the homepage.
3. Choose a contract: KuCoin offers a wide range of contracts to trade. You can choose from perpetual contracts or quarterly contracts. Perpetual contracts have no fixed expiry date, while quarterly contracts expire every three months.
4. Specify the quantity: Once you have chosen a contract, you will need to specify the quantity of the contract that you want to trade. You can trade as many or as few contracts as you want.
5. Place an order: Once you have specified the quantity, you will need to place an order. You can place a buy order if you believe the price of the contract will rise, or a sell order if you believe the price of the contract will fall.
6. Monitor your order: Once you have placed an order, you will need to monitor your order to see if it has been filled. You can view your open orders by clicking on the "Orders" tab on the homepage.
7. Close your order: Once your order has been filled, you can close your order by clicking on the "Close" button. You can also close your order by placing an opposite order. For example, if you placed a buy order, you can close your order by placing a sell order.