The contract trading gameplay is as follows:
I. Basic Concepts and Strategies
Contract trading is a type of financial derivative trading that allows investors to amplify returns through leverage, but it also increases risk. A common strategy is to open a portion of contract short positions to hedge risk when buying Bitcoin spot at a high price. In this way, if the spot price drops, although there will be a loss on the spot position, the profit from the contract short position can partially or fully offset this loss; if the spot price rises, although the contract short position may be liquidated, the profit from the spot position can offset this loss. However, this strategy requires investors to have a high risk tolerance and market judgment ability.
II. Trading Time and Rules
Trading Time: Contract trading is available 7*24 hours, but trading will be interrupted during settlement or delivery periods every Friday at 16:00 (UTC+8). In the last 10 minutes before delivery, only closing positions are allowed; opening positions is not permitted.
Trading Types: This includes opening and closing positions, and each type is further divided into two directions: buying and selling. Buying to open a long position indicates a bullish view, selling to close a long position indicates no longer being bullish; selling to open a short position indicates a bearish view, buying to close a short position indicates no longer being bearish.
III. Ordering Methods
Limit Order: Investors specify the order price and quantity themselves, suitable for trades with clear price expectations.
Market Order: Investors only need to enter the order quantity, and the system will place the order at the current latest market price, suitable for quick trading.
IV. Position Management
After a user opens a position, they own the position. Positions in the same direction on the same contract will be merged. In a contract account, there can be a maximum of 6 positions, including long and short positions of different cycles.
V. Order Restrictions and Risk Control
The platform will impose limits on the number of positions and orders for individual users to prevent market manipulation.
When the number of positions or orders is too large, the platform has the right to require users to take risk control measures, such as canceling orders or closing positions. The platform also has the right to impose measures such as limiting the total number of positions, limiting the total number of orders, restricting the opening of positions, canceling orders, and forcibly closing positions for risk control.
VI. Summary
Contract trading is a high-risk, high-reward trading method that requires investors to have rich market knowledge and risk control ability. When engaging in contract trading, it is essential to operate cautiously and fully understand the trading rules and risk control measures. For beginners, it is advisable to first accumulate experience through simulated trading or small trades, gradually improving their trading level.
