Gate.io Exchange Perpetual Contract Trading Operation Tutorial

Contract Trading Guide: Risk Avoidance and Make Stable Profits

This article is intended to help you understand the basics of cryptocurrency contract trading and master effective risk management strategies to make steady profits in volatile markets. Contract trading allows investors to trade and make profits by predicting price fluctuations without holding actual assets.

Basic concepts of contract trading

1. Long and short: Long refers to predicting a price increase, buying first and then selling to make a profit; short means predicting a price decline, selling first and then buying to make a profit.

2. Margin and Leverage: Margin is the minimum amount required for trading; leverage amplifies the transaction size, such as 10x leverage means that 100 USDT can control a contract of 1000 USDT, and high leverage amplifies returns while significantly increasing risks.

3. Trading fee:

   Each opening and closing position will incur a handling fee. The charging standards of different platforms are different, so you need to know in advance.

Gate.io platform contract trading steps

1. Select contracts and trading pairs:
Log in to the official website of Gate.io, select "Contract Trading", then select "Perpetual Contract" or "Delivery Contract" and select the trading currency pair.

Fund transfer:

In classic account mode, click the "Fund Transfer" button to transfer funds from the spot account to the contract account.

Set margin mode and leverage:

Select "full position mode" (all trading pairs share margin) or "Port-by-position mode" (each trading pair is independent margin), and set the leverage multiple (1-125 times). The higher the leverage, the higher the risk.

Place an order: Select a limit order (specified price and quantity), market order (market best price transaction), condition order or advanced limit order, enter the price and quantity, and select "Buy long" or "Sell short" to place an order.

5. Close position: Click "Position" to view position information, set a stop-profit and stop loss, and select market order, limit order or one-click closing position to close the position.

Binding and risk avoidance

Filing position means that the account margin is not enough to maintain the position, and the system forces the position to be closed to avoid greater losses.

Reason for liquidation:

• High leverage
• Sharp market fluctuations
• No deposit is added in time

Strategy to avoid bankruptcy:

• Choose leverage reasonably: Newbie recommends using low leverage.
• Finally pay attention to the mark price: The mark price is a reasonable price of the contract. Paying attention to its changes will help to adjust the strategy in a timely manner.
• Set stop loss and take profit order: Automatically execute stop loss and take profit, control risks and lock profits.
• Divered investment: Avoid putting all funds into a single contract.
• Add margin in time: Pay attention to margin warning and timely increase margin.

Summary

Contract trading contains huge potential, but the risks are equally huge. This article introduces the basic knowledge and operational processes of contract trading, and emphasizes the importance of risk management. Be sure to operate with caution and control risks reasonably in order to obtain long-term and stable returns in contract trading.

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