Generally divided into perpetual contracts and delivery contracts.
Contract trading is a way of trading that has appeared in major exchanges, already existing in the stock market and other trading markets.
In fact, a contract amplifies your funds through leverage, and by buying and selling, you can quickly achieve double returns, which is favored by investors in the cryptocurrency market.
Perpetual Contract: A perpetual contract has no expiration date, and users can hold it indefinitely and perform closing operations themselves.
Delivery Contract: A delivery contract has a specific delivery date, including this week, next week, this quarter, and next quarter contracts. When the specific delivery date arrives, regardless of profit or loss, the system will automatically settle the contract.
Margin Type: USDT Margin Contract: This means that you need to use the stablecoin USDT as collateral. As long as you have USDT in your account, you can conduct contract trading in multiple currencies, and profits and losses are settled in USDT.
Currency-Based Margin Contract: This is where the underlying currency is used as collateral, and you need to hold the corresponding currency before trading. The profits and losses are also settled in that currency.
What do full margin/isolated margin mean?
Full Margin means that all positions in the account share the margin, and the profits and losses of different positions can offset each other.
Isolated margin means that the risks and returns of each position are independent, and the margin and profits and losses of each position are calculated separately.
What does buying long/short mean?
"Buying Long" means buying a contract at a suitable price, waiting for the market price to rise, then selling it (closing the position) to earn the difference, similar to spot trading, referred to as "buy first, sell later."
"Short Selling" means selling a contract at a suitable price first, then waiting for the market price to drop before buying it back (closing the position) to earn the difference, referred to as "sell first, buy later."
After opening a position, you can view order information in the [Position] section, set stop-loss and take-profit orders, or perform closing operations.
What to pay attention to in contract trading:
(1) Regardless of whether in single-currency margin mode or cross-currency margin mode, when the margin rate <= 300%, the system sends a margin reduction warning to your account, and you need to pay attention to the risk of margin reduction; when the margin rate <= 100%, the system will cancel orders according to the rules, triggering forced liquidation. Please pay attention to position management to prevent liquidation risk.
(2) In isolated margin mode, the single-currency margin model and cross-currency margin model positions are independent and do not affect each other.
(3) In full margin mode, the single-currency margin model shares one margin for the same settlement currency; in cross-currency margin full mode, all assets in the trading account are converted into USD based on the conversion ratio and serve as shared position margin.
(4) In cross-currency margin mode, if you enable [Automatic Borrowing], you do not need to hold USDT or the underlying currency to conduct [USDT Margin] or [Currency-Based Margin] contract trading.
