Detailed explanation of ETH contract trading: One article on the two-way operation of long and short

Detailed explanation of ETH contract trading: One article on the two-way operation of long and short

ETH contract trading is an advanced trading method. Through the leverage mechanism, long and short two-way operation can be achieved. It can not only make profits when the price rises, but also make profits when the price falls. Master the logic of contract trading, risk control and operation skills, and novices can gradually participate and control risks.

• Binance

  • Direct to the official website:

  • Android installation package download:

• Ouyi OKX ️

  • Direct to the official website:

  • Android installation package download:

• Huobi Huobi️

  • Direct to the official website:

  • Android installation package download:

1. Basic concepts of contract trading

• Contract trading (Futures/Perpetual Contract) : It is not to directly buy and sell ETH, but to sign a contract with the platform to earn price difference.
• Long : The ETH price is expected to rise and buy the contract to make a profit.
• Short : The expected ETH price to fall and the selling contract will make a profit.
• Leverage : Use a small amount of margin to control more positions, which can amplify returns but also magnify risks.
• Margin : The funds used to open a position shall determine the amount of money occupied based on the leverage ratio.

2. Steps for beginners

1. Log in to the Binance APP and enter the "Contract → ETHUSDT Perpetual Contract" page.
2. Choose a leverage multiple, novices recommend low leverage (such as 3-5x) to reduce risks.
3. Analyze the market and determine the long (bullish) or short (believing) position.
4. Set the opening price, take profit and stop loss points, and use the limit order or market order to complete the transaction.
5. Position management: Monitor margin ratio and profit and loss, adjust positions or supplement margin if necessary.
6. Close position: reach the target price or trigger the stop loss point, close the position in time to lock in profits or stop loss.

3. Risk control skills

• Leverage risk : High leverage is easy to lose positions, and novices should start with low leverage.
• Position management : Build positions in batches to avoid one-time full-position investment and reduce the risk of loss.
• Take-profit and stop-loss settings : Plan the take-profit and stop-loss price in advance to prevent emotional operations.
• Funding security : Strictly use the official APP to trade and enable two-factor verification (2FA).

4. Practical operation strategies

• Trend follow : open positions in accordance with medium and short-term trends and improve the winning rate.
• Buy low and sell high / high altitude and low flat : Set reasonable entry and exit points in combination with support resistance levels.
• Increase and reduce positions in batches : After confirming the direction of the market, build positions in batches and gradually lock in profits.
• Pay attention to the news : policies, network upgrades or market hotspots may affect price fluctuations, and make position adjustments in advance.

5. Things to note for beginners

• First practice using a demo account or small amount of funds and be more familiar with the operation logic.
• Strictly control the position ratio to avoid excessive leverage and lead to liquidation.
• Maintain a rational attitude, avoid chasing the rise and selling the fall and excessive and frequent operations.
• Pay attention to account margin and unrealized profits and losses at any time to prevent forced closing of positions.

Summarize :

The core of ETH contract trading is long and short two-way operation, leverage risk control, and stop-profit and stop-loss settings . Novice can participate in contract trading steadily through low leverage, batch building positions, rational analysis and strict risk control, so as to achieve profit opportunities in price fluctuations, while avoiding the risk of liquidation .

The above is the detailed content of Detailed explanation of ETH contract trading: One article on the two-way operation of long and short. For more information, please follow other related articles on the PHP Chinese website!