What are the routines of digital currency contracts? How to play a digital currency contract?

Digital currency contract trading: an investment strategy that coexists with high returns and potential risks

Digital currency contract trading, unlike spot trading, investors need to predict the ups and downs of the digital currency price and choose to go long or short contracts to make a profit. Contract trading usually uses leverage, with potential returns higher than spot trading, but also accompanied by higher risks. This article will reveal common pitfalls in digital currency contract trading and provide detailed steps for contract trading on Ouyi OKX Exchange.

Risks and Traps of Digital Currency Contract Trading

The digital currency contract market hides many risks, and criminals or platforms may use rule loopholes to make profits. Common pitfalls include:

1. Price manipulation: Manipulate market prices through centralized trading, artificially raise or lower prices to make profits.
2. Information asymmetry: The platform or trading party may have more insider information and make profits by using the information gap.
3. Liquidity Trap: Platform sets rules to restrict users from withdrawing or transferring funds, and controls user funds.
4. Contract rules are opaque: Complex contract terms make it difficult for users to understand and are vulnerable to losses.
5. Manipulate settlement price: The platform uses prices that are not conducive to users during settlement, reducing user returns or increasing losses.
6. Technical failure utilization: The platform deliberately manufactures or exploits technical vulnerabilities to affect the contract execution results.
7. False transaction volume: The platform uses false transaction volume data to attract users to participate in transactions.
8. Breach of contract risk: The platform is unable or refusing to perform the terms of the contract, resulting in loss of users' funds.

How to trade contracts on Ouyi OKX Exchange?

The following steps provide detailed description of how to trade contracts on Ouyi OKX Exchange:

1. Register an account: Visit Ouyi OKX official website (click here to register), register an account and complete email and mobile phone verification.

2. Identity authentication: Complete identity authentication and improve account security level.

3. Purchase digital assets: Purchase USDT and other digital assets through the C2C coin buying function.

4. Set account mode: Set the account mode to single currency margin mode or cross currency margin mode.

5. Select contract type: Select a delivery contract (current week, second week, current quarter, second quarter) or perpetual contract, and select a coin standard or U standard contract.

6. Order transaction: Select the entrustment type, enter the price and quantity, and click "Buy long" or "Sell short".

7. Manage position: View order data in the position interface, set stop-profit and stop loss, and perform closed position operations.

Risk warning: Contract trading risks are extremely high, please operate with caution. Choose a formal platform, understand contract rules, control risks, and never blindly pursue high returns.

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