**WHAT IS A PERPETUAL CONTRACTS TRADING?**
A **Perpetual Contract** is a derivative product that is similar to a traditional Futures Contract, but has a few differing specifications: There is no expiry date or settlement. So someone can hold a position for as long as they like. Other than that, the trading of perpetual contracts is based on an underlying Index Price. The **Perpetual Contracts** mimic a margin-based spot market and hence trade close to the underlying reference Index Price. The Index Price consists of the average price of an asset, according to major spot markets and their relative trading volume. Perpetual contracts are often traded at a price that is equal or very similar to spot markets.
**HOW DOES PERPETUAL CONTRACT WORKS?**
For example, you purchase a Perpetual Contract for the BTC/USD pair. If you Long (buy) and the Bitcoin price rises, you make a profit at the end of the contract, while you would suffer a loss if the price drops. On the contrary, if you Short (sell) and the BTC price falls in value, you would make a profit but would suffer a loss if the price rises.
**WHY MUST WE ADOPT PERPETUAL CONTRACT TRADING**
**Hedging and risk management:**
With the volatility nature of crypto market, perpetual contract helps traders to manage and hedge over the risk of crypto market
**Short exposure:**
Traders can bet against an asset’s performance even if they don’t have it.
**Leverage:**
Traders can enter positions that are larger than their account balance.
**COINEX PERPETUAL CONTRACT TRADING**
The [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) exchange is currently providing Perpetual Contracts with up to 100x Leverage, which allows traders to keep their positions open for as long as they want. The [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) higher leverage offers traders with better flexibility and chance to gain higher profit with less funds. The [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) Perpetual Contracts allow you to buy for long or sell for short based on your predictions about the future upside and downside of the prices.
**COINEX CONTRACT TRADING SUPPORTS:**
*LTC-USD*
*BTC-USD*
*XRP-USD*
*EOS-USD*
*ETH-USD*
*BCH-USD*
*BSV-USD*
**CHARACTERISTICS OF COINEX PERPETUAL CONTRACT TRADING**
They don’t have an expiry date, which is an advantage over the futures market. Because there’s no expiry, speculative traders and investors alike can have a hassle-free trading environment where they can hedge and even hold trades as long as they want.
Leverage trading on [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) is up to 100X i.e ( 3X, 5X, 8X, 10X, 15X, 20X, 30X, 50X, 100X). Since the leverage is high, traders can open or close a position with only a fraction of their account balance. [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) Perpetual Contracts therefore offer the potential to make a higher return from a smaller initial outlay than investing directly in the underlying security.
Trading Perpetual Contracts on [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) involves safe liquidation and a protective anti-manipulation mechanism.
**ADVANTAGES OF COINEX PERPETUAL CONTRACT TRADING**
Perpetual Contract trading is flexible and very great. Every trader has the chance to conduct both short and long trades, unlike spot trading, which is unidirectional. Furthermore, you are not stuck with a loss-making trade even in a bear market or during weekends, considering the nature of the cryptocurrency market, which has no bank holidays. The only time exchanges are not in operation is when there is scheduled maintenance, of which traders are given prior notice.
The increased leverage of perpetual contracts further improves their allure. Up to 100x leverage on perpetual contract trades is available on [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) exchanges. This certainly makes the potential investor profits larger, which attracts investors. The possibility of starting out small and building up your portfolio through profit maximization is the essence of perpetual contracts.
**HOW TO TRADE ON COINEX PERPETUAL CONTRACT**
- 1. Go to [CoinEx](https://www.coinex.com/account/signup?refer_code=n9q82&lang=en_US) website, sign in to your account and click [Perpetual].
**Introduction to Perpetual Contract:**
**1. Markets Area**
**2. Market Information**
**3. Candlestick**
**4. Order Area**
**5. Long-short Ratio**
**6. Market Depth/Trade History**
**7. Sidebar Menu**
**8. Current Position/Position History**
**9. Trade History(Mine)**
**Step 1: Transfer**
- 1. Enter the page of [Perpetual Contract] and then click [Transfer].
- 2. For [Side], choose [From Spot account to Perpetual Contract Account]. Then enter an [Amount] or click the orange number to transfer all of the available, and click [Confirm].
**Step 2: Buy Long/Sell Short**
- Buy Long
**Limit:** Make a choice in [Valid Time], enter a [Price] and an [Amount] and click [Buy Long] to
confirm it.
- **Market:** Choose [Market] in the order area, enter an [Amount] and then click [Buy Long].
- **Stop-Limit(keep profit/stop loss):** Choose [Stop-Limit] in the order area, set a type of [Valid Time] and [Trigger Point], and then enter a [Limit] price and an [Amount], and then click [Buy Long].
- **Stop-Market(keep profit/stop loss):** Choose [Stop-Market] in the order area, set a [Trigger Point], enter a [Stop] price and an [Amount], and then click [Buy Long].
**Sell Short*"
*"Limit:** Make a choice in [Valid Time], enter a [Price] and an [Amount] and click [Sell Short] to confirm it.
**Market:** Choose [Market] in the order area, enter an [Amount] and then click [Sell Short].
**Stop-Limit(keep profit/stop loss):** Choose [Stop-Limit] in the order area, set a type of [Valid Time] and [Trigger Point], and then enter a [Limit] price and an [Amount], and then click [Sell Short].
**Stop-Market(keep profit/stop loss):** Choose [Stop-Market] in the order area, set a [Trigger Point], enter a [Stop] price and an [Amount], and then click [Buy Long].
**Step 3:**
**Choose Isolated/Cross Margin&Set a leverage**
1. On the page of Perpetual Contract, click Isolated/Cross Margin&Leverage on the right to open the selection window.
2. Set your margin type (Cross/Isolated Margin), choose a leverage and then click [Confirm].
**Step 4:**
Confirm the order
Click [Confirm] to place the order.
**Step 5:**
- Liquidate/All at Market
Liquidate:
1. Set a [Price] and an [Amount] in [Current Position] and then click [Liquidate].
**2. Click [Confirm] to finish the liquidation.**
**All at Market:**
1. Click [All at Market] in [Current Position].
**2. Click [Confirm] to liquidate your position all at market price.**
Join CoinEx Telegram if you need more clarification: https://t.me/CoinExOfficialENG
Courtesy:
B. Raphael (Raphman)
(CoinEx Ambassador)