A Simple Guide to Trading Perpetual Contracts

1. Understand the Basic Rules

• Funding Fee: The price difference exchanged between long and short positions, aimed at keeping the contract price close to the spot price. When the fee is positive, the long pays the short, so don't rush to chase the price up; when the fee is negative, the short pays the long, be wary of a sharper decline.

• Leverage: Like an amplifier, under 10x leverage, both gains and losses will be magnified by 10 times. Beginners should use a maximum of 5x, and experienced traders shouldn't exceed 10x, or they might trip up.

• Mark Price: Specifically designed to prevent sudden losses, it calculates profit and loss based on the average price across multiple platforms to avoid being liquidated in a crash.

• Automatic Position Reduction: In extreme market conditions, positions that lose too much will be forcefully liquidated to help share some risks.

2. Four-Step Trading Method: Follow it to Stay Calm

1. Look at the Big Picture: On the daily chart, if the 30-day moving average is above the 60-day moving average and the MACD histogram is lengthening, it's a bullish trend; the opposite indicates a bearish trend.

2. Find Entry Points: On the 4-hour chart, if the price retraces to the middle line of the Bollinger Bands and the RSI moves up from below 40, it's a relatively safe entry; on the 1-hour chart, if it breaks a descending line with volume doubling, it's also a good entry.

3. Set Stop-Loss: Decide beforehand how much you can afford to lose at most (e.g., 5% of your capital), and exit when you hit that point—don't stubbornly hold on, or you might lose everything.

4. Take Profit and Exit: Sell when you reach your target (e.g., 10%), or wait for a trend reversal signal (like the MACD turning green) before exiting—take the profit and don't be greedy.

3. Beginner's Toolkit

• Use TradingView for charting, adjust moving averages and MACD templates for clarity.

• Check fees on CoinGlass, look at the heat map, do less longing when red (positive fee) and do less shorting when green (negative fee).

• Practice on Bybit's demo account for at least 3 weeks, only use real money when your win rate exceeds 65%.

Final Reminder: Don’t exceed 30% of your capital in a single position, stick to the steps strictly. Staying alive in the market is the most important; there will be many opportunities in a bull market, so don't rush for quick gains. #合约挑战