The Tapbit USDT perpetual contract is similar to a traditional futures contract, but it never expires, requires no delivery, and can be held freely. It supports 1-100x leverage and trades close to the price of the underlying index.
|Type||Margin||Pnl & Settlement Coin||Max Leverage||Price Fluctuation|
|USDT-Margined||USDT||USDT||100x||Stable, will not be influenced by USDT price fluctuation|
Tapbit USDT perpetual contracts basic logic, is as follows;
- Open Long > Margin Payment > Buy Call Contracts > Earn from rising market
- Open Short > Margin payment > Buy put contracts > Earn from the fall of the market
Simply put, for those of you who have opened multiple positions. To increase revenue when the market price is higher than the opening price after opening a position. After opening a position, the market price is lower than with the opening price you may lose revenue.
On the contrary, for you who have opened a short position. You may increase revenue when the market price is lower than the opening price after opening a position. After opening a position, the market price is higher than the opening price, you may lose revenue.
Tapbit USDT perpetual contract operation, process and or procedure, the following is a BTC & USDT example.
Step 1: Transfer the desired USDT to your contract account
Step 2: Use USDT to open long or short based on market trends
Step 3: Close your positions to profit from the BTC or USDT uptrend and or downtrend.
1. Login to Tapbit and click “Assets” > “Transfer” to enter the asset transfer page, and transfer USDT to your “USDT Contract Account”.
2. Click “Derivatives” > “USDT Perpetual” in the navigation bar to enter the trading interface.
3. To access the USDT Perpetual trading page.
3.1 Catch the uptrend and open long.
3.2 When BTC rises, click “Close” to close long and take profit!
Important Note: Closing a position in the contract trade means doing the opposite of what you did when you opened it. When the price of BTC rises, you can close your long position via “Limit” (sell at the price you specify) or “Market” (sell at the last price) to earn USDT.
3.3 Catch the downtrend and open short
3.4 When BTC is falling, click “Close” to buy short and take profit!
Important Note: Closing a position in a contract trade means doing the opposite of what you did when you opened it. When the price of BTC falls, you can shorten your position by “Limit” (sell at the specified price) or “Market” (sell at the last price) and earn USDT!
In order to control your risk and avoid blowing up your positions, you need to keep your leverage within an appropriate range. It is recommended that novice traders trade futures according to the following risk levels.
- Low Risk: 1 < actual leverage < 5
- Medium Risk: 5 ≤ actual leverage < 20
- High Risk: actual leverage ≥20
Important Note: Trading contracts by risk level can only reduce, but not avoid, the risk of forced liquidation. It is recommended that novice traders keep their leverage within 5x to be on the safe side.