Upbit perpetual contract trading rules

To trade perpetual contracts on Upbit, traders must create a verified trading account, utilize margin trading, and choose from various order types to manage risk through features like stop-loss and position size consideration.

Nov 12, 2024 at 08:16 pm

Upbit Perpetual Contract Trading Rules: A Comprehensive Guide

Introduction

Perpetual contracts, also known as perpetual futures, are a type of financial derivative that allows traders to speculate on the future price of an asset without having to take physical delivery of the underlying asset. Upbit, one of the leading cryptocurrency exchanges in the world, offers perpetual contract trading for a variety of cryptocurrencies.

Trading Rules

1. Account Requirements

To trade perpetual contracts on Upbit, you must have a verified trading account. This involves providing personal information, such as your name, address, and date of birth, and undergoing a KYC (Know Your Customer) process.

2. Margin Trading

Perpetual contracts are traded on margin, which means that you can borrow funds from the exchange to increase your trading leverage. The amount of leverage you can use varies depending on the asset you are trading and your account level.

3. Order Types

Upbit offers a variety of order types for perpetual contract trading, including:

• Limit orders: These orders are executed at a specified price or better.
• Market orders: These orders are executed at the best available market price.
• Stop orders: These orders are triggered when the price of the asset reaches a specified level.
• Trailing stop orders: These orders move with the price of the asset, maintaining a specified distance from the current market price.

4. Risk Management

Perpetual contract trading can be risky, and it is important to manage your risk carefully. Upbit offers a number of features to help you manage your risk, including:

• Stop-loss orders: These orders are used to limit your potential losses by automatically selling your position when the price of the asset falls below a specified level.
• Take-profit orders: These orders are used to take profits by automatically selling your position when the price of the asset rises to a specified level.
• Position size: It is important to consider the size of your position relative to your account balance and your tolerance for risk.

5. Fees

Upbit charges a variety of fees for perpetual contract trading, including:

• Trading fees: These fees are charged based on the volume of your trades.
• Margin fees: These fees are charged if you borrow funds from the exchange to trade on margin.
• Funding fees: These fees are paid by traders who are long on a contract to traders who are short on the same contract.

Conclusion

Perpetual contract trading on Upbit can be a rewarding but also risky endeavor. By understanding the trading rules and managing your risk carefully, you can increase your chances of success.