Home web3.0 How to play Eureka contracts

How to play Eureka contracts

Jul 02, 2024 am 11:36 AM
digital currency exchange EuroExchange

Contract trading is a type of financial derivative that allows traders to speculate on the future price movements of the underlying asset. Eureka Exchange provides two contract types: perpetual contracts and delivery contracts. The process includes selecting the contract type, underlying asset, leverage, opening and closing positions. Perpetual contracts have no delivery date, while delivery contracts have a fixed delivery date. Contract trading involves high risks. Traders should consider risk factors such as price fluctuations, leverage, liquidation and funding rates, choose reasonable leverage, use stop loss orders, and continuously monitor market conditions.

How to play Eureka contracts

European Exchange Contract How to Play Guide

Introduction to Contract Trading Contract trading is a type of financial derivative that allows traders to speculate on the future price trend of underlying assets (such as digital currencies). EurEx offers a wide range of contract products, including perpetual contracts and delivery contracts.

How to conduct contract trading To conduct contract trading, you need to:

Open an account on Eureka Exchange Fund your account Select the contract type and underlying asset you want to trade Contract trading process

Select the contract type: Select Forever Renew or deliver the contract. Select Underlying Asset: Select the digital currency you want to trade. Choose Leverage: Leverage allows you to magnify the size of your trades, but it also increases risk. Open a position: Select the direction in which you want to open a position (long or short). Closing a position: When you want to close a trade, you need to close the position. Profit or Loss: If your prediction is correct, you will make a profit. If your prediction is wrong, you will lose money. Perpetual Contracts and Delivery Contracts

Perpetual Contracts:

There is no delivery date and you can hold the position indefinitely. The funding rate mechanism is used to offset the cost of holding positions. Delivery Contract:

Has a fixed delivery date when you will receive or deliver the underlying asset. Financing fees are based on funding rates and position direction. Contract Trading Risks Contract trading carries high risks, and traders should carefully consider the following factors before entering the market:

Price Volatility: The digital currency market is highly volatile, and prices can change rapidly. Leverage: Leverage can magnify your profits, but it also increases your risk of losses. Liquidation: If your margin is insufficient, your position may be forced to liquidate. Funding interest rate: Funding interest rate has a significant impact on the holding cost of the perpetual contract. Contract Trading Tips

Understand the risks of contract trading. Only trade what you can afford. Use reasonable leverage. Use stop-loss orders to manage risk. Continuously monitor market conditions.

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