How to play the okex perpetual contract

Perpetual contract is a financial derivative that allows two-way trading of the underlying asset and has no expiry date. To open a perpetual contract position on OKEx, you need to register an account, deposit a margin, select a contract type, enter trading parameters, and submit an order. Traders can bet on the price movement of an underlying asset through long or short trades. Margin is the money required to maintain a position, and leverage allows traders to borrow funds to increase the size of a trade. To manage risk, traders should develop a trading plan, use stop-loss orders, and manage position sizing. It should be noted that perpetual contracts have a leverage effect, and a full understanding of the market and strategies is required before trading.

OKEx Perpetual Contract Trading Guide

What is a Perpetual Contract?

Perpetual contracts are a type of financial derivatives that allow traders to conduct long-term, two-way transactions on underlying assets (such as Bitcoin, Ethereum). It is similar to a futures contract, but a perpetual contract has no expiration date and traders can hold the position indefinitely.

How to open a perpetual contract position?

Opening a perpetual contract position on OKEx involves the following steps:

1. Sign up for an OKEx account: Visit the OKEx website and create a new account.
2. Deposit Margin: Deposit the underlying asset or stablecoin (such as USDT) you wish to trade into your OKEx account.
3. Select contract type: Select the specific perpetual contract you want to trade, such as BTC-USD perpetual contract.
4. Enter trading parameters: Specify your trade quantity, leverage and order type.
5. Submit Order: Confirm your transaction details and submit your order.

How to trade perpetual contracts?

You can conduct the following types of transactions in the perpetual contract market:

• Long trading: Predict the price of the underlying asset to rise and buy the contract at a lower price.
• Short trading: Predict the price of the underlying asset to fall and sell the contract at a higher price.

Margin and Leverage

In perpetual contract trading, margin refers to the funds you deposit into your account to maintain your position. Leverage refers to the amount of money you can borrow against your margin. Higher leverage allows you to make larger trades with smaller capital, but also increases your risk.

Risk Management

Perpetual contract trading involves high risks and high rewards. In order to manage risk, it is crucial to take the following steps:

• Develop a trading plan: Set clear trading goals, risk tolerance and loss limits.
• Use Stop Loss Orders: Automatically close your position when a preset price is reached to limit losses.
• Manage Position Size: Don’t overcommit to any single trade, diversify your capital to reduce overall risk.

Things to note:

• Perpetual contracts are leveraged products that may magnify your losses and gains.
• Perpetual contracts have no expiration date and you can hold the position indefinitely.
• OKEx perpetual contracts offer leverage from 1x to 100x.
• Trading perpetual contracts requires an in-depth understanding of the cryptocurrency market and trading strategies.

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