What is a coin-margined perpetual contract?

Coin-based contracts are contract products that use encrypted tokens as quotations and settlements. It supports multiple currencies as margins for multiple contract trading currency pairs. Through currency-based contracts, users can have more trading options, which can effectively improve capital utilization efficiency, increase transaction profits and transaction prices.

If you choose to go long, it means you are buying a contract and predicting that its price will rise in the future.

If you choose to go short, you are selling the contract and predicting that its price will fall in the future.

Step 1: Log in and select a contract trading pair

Use the browser Hotcoin official website, or download the Hotcoin App and open the App. After successful login, click [Contract] and select [Perpetual Contract], after entering, switch the default USDT contract to the currency-based contract on the left.

In the trading pair selection area on the left, select the contract trading pair you wish to go long or short, such as BTC/USD perpetual.

Step 2: Select the trading mode "Full Margin" or "Isolated Margin", "Close Margin" or "Split Margin"

The cross margin model refers to using all the account balances as margin to guarantee all cross positions to avoid forced liquidation. Under this margin mode, forced liquidation will be triggered when the net asset value is insufficient to meet maintenance margin requirements. If a cross position is forced to be liquidated, the user will lose all assets in the account except for the margin of other isolated positions. The maximum loss for an isolated position is limited to the initial margin and position additional margin used for the isolated position. If the position encounters forced liquidation, the user will only lose the margin of the isolated position, and the account balance will not be additionally called. By isolating the margin used on a position, you can limit losses on that position.

In the closing mode, there are only two positions at most for the same currency pair, and the leverage of the positions in the same direction is the same.

In the split position mode, multiple positions can be opened for the same trading pair, and the leverage can be set independently for each position.

The system defaults to full/closed positions. You can click [Isolate] and [Split] to reselect the trading mode as needed.

Step 3: Select the direction of opening a position: "Open Long" or "Open Short"

Buy and open long: If the trader judges that the market price will rise in the future, he will go long and buy a certain number of contracts. Going long actually means buying a contract at a suitable price, waiting for the market price to rise and then selling (closing the position) to earn the difference. This is similar to spot trading, abbreviated as "buy first, sell later".

Short selling: If the trader judges that the market price will fall in the future, he will go short and sell a certain number of contracts. Short selling actually means selling the contract at the right price first, waiting for the market price to fall and then buying (closing the position) to earn the difference, which is referred to as "sell first and buy later".

Select the opening direction, that is, the corresponding order area:

Step 4: Select the order method

Limit order: Limit order allows users to set the order price, and the order will be filled at the order price or at a price better than the order price.

Market order: The market order will be executed at the best price available in the order list at that time. There is no need to set the price yourself, which can make the order quickly executed.

Planned order: A trigger price is set. When the base price selected by the user reaches the trigger price, an order will be placed at the order price (limit price or market price is supported).

Maker only: When placing an order, you can choose to be Maker only, so that your order will not be executed immediately in the market. It will exist as a Maker order on the order book, but will not match an order already on the order book. Making Maker-only orders will add liquidity to the market. When executing an order with the taker side, you will only pay the Maker fee and will not pay the Taker fee.

Step 5: Set leverage

Hotcoin perpetual contracts support a maximum leverage of 125 times, and the leverage multiples vary depending on the contract trading pair. Leverage is determined by Initial Margin and Maintenance Margin levels, which determine the minimum funds you need to open and maintain a position.

You can set the desired leverage ratio before opening a position, or modify the leverage ratio while holding a position. For example: the current long position is 20X. In order to reduce the risk of long and short hedging, it is planned to adjust the long position from 20X to 10X. Click the [20X] button, then manually adjust it to 10X, and finally click [OK] to adjust the long position. The single leverage multiplier becomes 10X.

Note: If you choose high leverage, please read the margin trading risk disclosure.

Step 6: Set the order price and take profit and stop loss

The order price is the price you expect to be transacted in the contract trading market. When selecting a limit order, you can select the counterparty price and the optimal N level. The counterparty price refers to entrusting based on the counterparty's quotation, that is, buying at the asking price and selling at the asking price. According to the price priority principle, this can guarantee immediate transaction. The best N level refers to entrusting based on the N level quotation of the opponent's market.

The Hoitcoin contract supports setting [Take Profit] and [Stop Loss] at the same time. For example, when the BTC/USD contract opens long at the price of $26069, you can set the trigger prices of take-profit and stop-loss at the same time.

Step 7: Transfer margin

Click Fund Transfer at the bottom of the left, transfer BTC from the spot account to the contract account as the opening margin, enter the principal amount of your chosen transaction and click Transfer Now.

Step 8: Click "Buy to Open Long" or "Sell to Open Short" to complete the order

Step 9: After opening a position and placing an order, you can view the order

Orders that have been submitted but have not been executed will be displayed in the "Current Orders". After the transaction, the positions you hold will be displayed in the current positions list, and the historical records can be viewed in the historical orders list. You can adjust leverage or close positions as needed.

You can do more with your positions:

Adding a position: Adding to the position in the same direction, the same trading pair and the same leverage multiple, the current latest market price will be the adding price;

Market price full closing: that is, lightning closing, all positions will be closed immediately at the market price;

Reverse position opening: Reverse position opening will be closed at the market price, and then a reverse position of the same amount will be opened. Please ensure that your balance is sufficient. Due to market fluctuations, opening a reverse position may not be successful.

Warm reminder: Hotcoin encourages users to reduce risks and trade cautiously by controlling capital allocation and position size.