Tutorial About Digital Currency Contract Trading
About Digital Currency Contract Trading
I. What is contract trading?
1. Contract trading is an agreement between a buyer and a seller to receive a certain amount of an asset at a specified price at a certain time in the future. A contract is a standardised contract between a buyer and a seller, with the exchange specifying the type of commodity, the time of the transaction, the quantity and other standardised information. The contract represents the rights and obligations of the buyer and seller.

2. Contracts trading is a financial derivative, as opposed to trading in the spot market, where the user can choose to buy long or sell short contracts to gain from price increases or decreases by judging the ups and downs in futures contract trading.


II. What is the role of contract trading?
Standardised contracts were originally designed to hedge against spot risk. In order to lock in the cost of revenue and hedge against the risk of large fluctuations in spot prices, companies or individuals engaged in the buying and selling of commodities will place short (long) orders of the same position in the futures market, which are used to hedge against risk. Trading in digital asset contracts represented by Bitcoin usually takes place on a spread settlement basis, where the system settles all open positions at the settlement price at the expiry of the contract.


III. Rules for contract trading
1. Trading hours: Contracts are traded 7*24 hours

2. Type of transaction There are two types of transactions: open and close positions. Open and closed positions are further divided into two directions: buying and selling. A buy open long (call) is a new purchase of a certain number of contracts when the user is long or bullish on an index. A "buy to open long" operation will increase the long position when the aggregation is successful. A Sell Close Long (long position closing) is a sell contract that is covered by a user who is no longer bullish on the future of the index and is hedged against a currently held buy contract to exit the market. A "Sell Close Long" operation will reduce a long position after a successful aggregation. Selling short (bearish) means selling a new quantity of a contract when the user is bearish or bearish on the index. A "Sell Open Short" operation will increase the short position when the aggregation is successful. A buy to close (short position closing) is a buy contract that the user is no longer bearish on the future of the index and is offset against the current sell contract held to exit the market. A "buy to close" operation will reduce the short position when the aggregation is successful.


IV. Margin
1. What is the margin? In the virtual contract market, users can participate in the purchase and sale of contracts by simply depositing a small amount of money at a certain rate, based on the contract price, as financial security for the performance of the contract; this money is the virtual contract margin.

2. What is leverage? Leverage is a common financial trading system known as the margin system. "Leverage" allows investors to trade for a greater amount of money, while at the same time increasing the amount of return and risk they can take. In other words, it magnifies the return and the risk.


V. What is two-way trading? What are the advantages?
Two-way trading allows investors to open and close positions independently according to their own needs or the actual situation of the market, to seize the opportunity to take profits in a timely manner, or to close positions in a timely manner at the appropriate point, to control losses within a tolerable range. At the same time, the two-way trading operation is very flexible, investors can not only do more in the rising market, but also in the falling market to make short profits, which increases the opportunity for investors to do single, but also to a large extent to meet the needs of investors, in layman's terms is to buy up can also buy down, as long as the direction is judged correctly, you can make money, when the market rises to do more, when the fall to do short, at any time There are investment opportunities, more opportunities for investors, more fair, easier to operate.
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Risk Warning | Withdrawal: Withdrawal application will be processed quickly, and funds will be deposited into your bank account immediately. Please keep in mind that financial products carry a high level of risk, and you may lose your entire principal due to this. Margin trading may not be suitable for all investors, please ensure that you fully understand the risks involved. Before using our services, please consider our risk warnings, terms and conditions. Traders do not own the underlying assets and related rights and interests of the transaction.

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All the products we provide are over-the-counter derivatives based on global assets. All services provided byUKBTC are only based on the execution of trading instructions.

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