How to buy contracts on OuYi

Key Points:

• Understand Contract Trading: Before venturing into contract trading on OuYi, grasp the fundamentals of this unique trading instrument.
• Open a OuYi Account: Create an account on OuYi, verify your identity, and fund your account with supported currencies or cryptocurrencies.
• Choose Your Contract: Select the contract you wish to trade based on factors such as trading pair, leverage level, and expiry date.
• Analyze Market Trends: Employ technical analysis tools and indicators to identify potential trading opportunities and make informed decisions.
• Place Your Order: Familiarize yourself with the various order types available on OuYi's trading platform and place your trade accordingly.
• Manage Your Risk: Implement risk management strategies, such as setting stop-loss and take-profit levels, to minimize potential losses.
• Close Your Position: Decide when to close your contract position to capture profits or cut losses, based on market conditions and your trading strategy.

Detailed Guide:1. Understand Contract Trading

Contract trading, also known as perpetual futures, allows traders to speculate on the future price of an underlying asset without taking ownership of the asset itself. On OuYi, you can trade perpetual contracts on various cryptocurrencies, indices, and commodities. Traders use leverage to amplify their potential returns but should be mindful of the increased risk associated with leveraged trading.

2. Open a OuYi Account

Begin by creating an account on OuYi's official website or mobile application. Complete the registration process, verify your identity through KYC, and fund your account using a supported deposit method.

3. Choose Your Contract

OuYi offers a wide range of perpetual contracts. Consider the following factors when selecting your contract:

• Trading Pair: Choose the cryptocurrency pair you wish to trade.
• Leverage Level: Select the leverage multiplier that aligns with your risk tolerance. Higher leverage amplifies potential returns but increases risk.
• Expiry Date: Perpetual contracts do not expire.

4. Analyze Market Trends

Before placing a trade, analyze market trends using technical analysis tools such as candlesticks, moving averages, and support and resistance levels. This helps you identify potential trading opportunities and make informed decisions.

5. Place Your Order

Familiarize yourself with the order types available on OuYi's platform, including market orders, limit orders, and stop-loss orders. Choose the appropriate order type based on your trading strategy and market conditions.

6. Manage Your Risk

Implement risk management measures to mitigate potential losses. Set stop-loss levels to automatically close your position if the market moves against you. Take-profit levels can help you lock in profits at a predetermined level.

7. Close Your Position

Monitor your position and decide when to close it based on market conditions and your trading strategy. You can close your position by placing an opposite order to your original trade.

FAQs:What is a perpetual contract?

A perpetual contract is a contract that allows you to speculate on the future price of an underlying asset without taking ownership of the asset. It does not have an expiry date, unlike futures contracts.

What is leverage?

Leverage is a tool that allows traders to amplify their potential returns by borrowing funds from the exchange. Leverage increases both potential profits and losses.

How do I calculate contract size?

Contract size is determined by the notional value of the contract and the leverage level used. Refer to OuYi's documentation for contract size calculations for specific trading pairs.

What is a stop-loss order?

A stop-loss order is a conditional order that automatically closes your position if the market moves against you, limiting your potential losses.

How do I fund my OuYi account?

You can fund your OuYi account through various deposit methods, including bank transfers, credit/debit cards, and cryptocurrencies.