1. The most stable way to play currency contracts

Choose good coins and be a good person. As a leveraged trader, fluctuations can be amplified by leverage. The primary consideration in the trading process is not volatility but certainty.

Go long the strongest currency when the market is rising, and short the weakest currency when the market is falling.

For example, at the beginning of the new quarter, EOS and ETH have the strongest gains. These two currencies are the first choice to go long when they fall back. When they fall, Bitcoin is the first choice to go short, even if the final result is that the mainstream currency declines more than Bitcoin. The currency is large, but only shorting or chasing short Bitcoin can greatly avoid the risk of violent counterattacks.

Most of the currency circle is short-term traders. When trading, it is difficult to have the opportunity to stick to the ideal point to close the position. At the same time, they are not very proficient in position control, and cannot rely on shocks to pull the average price. Based on this situation, For most traders, a good opening price trumps everything else.

Once there is a profit, take part of the trade first to make a profit, and set a cost price stop loss on the other part. This is what I have been emphasizing in my own community.

The way of trading is to accumulate less and make more, and compound interest is king. If you get rid of costs, you must not return to losses. If you make a profit, you must pocket some of it to prevent it from going to waste. In summary, it can be summed up in one sentence: If there is profit, go boldly, and the remaining price will be lost.

Being able to read the trend correctly and make a certain order profitable is strength, but how much profit this order can ultimately make depends on luck. Therefore, I suggest that you pocket the part of the remuneration you get based on your strength first, and the rest depends on whether the market will give you face.

With the same principal, a stop loss of US$200 with 5 times leverage and a stop loss of US$100 with 10 times leverage will result in the same amount of money lost when the stop loss is actually triggered.

If a single loss exceeds 30% of the total assets, the consequences are serious, and it will take great efforts to recover the capital in the future. Therefore, when setting a stop loss, you need to ensure that a single loss does not exceed 10% of the total position.

2. How to make money from perpetual contracts

1. Put an end to empty warehouses

Put an end to the behavior of gamblers. There are often two extreme situations in full positions, either a night of heaven or a night of hell. This not only fails to provide security conditions for our funds, but also cannot guarantee continued profitability.

2. Understand the general market trend

Those who follow the trend will prosper and those who go against will perish. This principle is not only mentioned in nature, but also vividly manifested in trading! The perpetual contract itself has a capital leverage of 1-125 times. We must pay more attention to the trend in trading, so that we The distance to becoming rich will get closer and closer. Trend analysis reminds us that ALPEX's service is quite good, and the general trend will be given in the daily market analysis!

3. Specify take-profit and stop-loss targets

The error rate of short-term trading of perpetual contracts is often higher than that of medium and long-term trading. At the same time, the time period of short-term trading is shorter and there are much fewer opportunities to correct mistakes. Therefore, when the trend of BTC does not match your expectations, you must take profit or stop loss in time, withdraw the funds, and wait for the next opportunity to enter the market.

4. Remember to overdo mundane transactions

Since the BTC perpetual contract is a 24-hour non-stop transaction, many investors suffer from over-trading. They cannot control themselves and operate several times in a certain period of time every day, as if they are very powerful and do not want to let go of every market trend. In the end, it was all in vain.

3. What are the types of contracts?

Perpetual contracts: Perpetual contracts have no expiration date. Users can hold them forever and perform liquidation operations by themselves.

Delivery contracts: Delivery contracts have specific delivery dates, including delivery contracts for the current week, next week, current quarter, and second quarter. When the specific delivery date arrives, the system will automatically deliver regardless of profit or loss.

USDT margin contract: means that you need to use the stable currency USDT as a collateral asset. As long as you have USDT in your account, you can conduct contract transactions in multiple currencies. The profit and loss will be settled in USDT.

Coin-based margin contract: The underlying currency is used as the collateral asset. You need to hold the corresponding currency before trading, and the profit and loss is settled in this currency.