Here is a detailed guide on how to complete your first contract trade on BitTap:
Summary
- This guide is designed to help new users complete their first contract trade using BitTap’s USDT-margined contracts as an example.
- Before you start trading, it is essential to understand the process and risks associated with contract trading.
- BitTap suggests new users start with a small amount of funds for their first contract trade to get familiar with the operations and product features.
Understanding the Difference Between Contract Trading and Spot Trading
Contract trading is a type of derivative trading where leverage is used to amplify returns, but it also increases potential losses. This is fundamentally different from spot trading, and users should fully understand how it works.
Step 1: Transfer Funds to Your Contract Account
After completing your initial deposit, the funds will be available in your spot account. To start contract trading, you need to transfer the funds from your spot account to your contract account. BitTap provides multiple accounts for risk management, including a funding account, a spot account, and a contract account.
Mobile App:
1. Open the BitTap app, tap on “Assets” at the bottom right, and select “Transfer.”
2. Choose the USDT-margined contract, then transfer funds from the spot account to the contract account.
3. Enter the transfer amount, select the cryptocurrency (e.g., USDT), and click “Confirm Transfer.”
Web Version:
1. Log in to the BitTap web platform, click on “Account” at the top right, and select “Transfer.”
2. Choose the contract type and cryptocurrency, then transfer the funds to your contract account.
Step 2: Start Contract Trading
Mobile App:
1. Choose a Trading Pair: On the contract trading page, the default trading pair is BTC/USDT. Click the top left corner to choose other pairs, such as ETH/USDT.
2. Select Margin Mode: Before trading, choose either Cross Margin or Isolated Margin mode.
- Cross Margin: All funds in the account are used as margin for all positions.
- Isolated Margin: Each position has its own margin, reducing risk.
3. Set Leverage: In either margin mode, choose the leverage multiplier. BitTap offers leverage from 1x to 200x. New users are advised to use lower leverage (e.g., under 10x).
4. Choose an Order Type:
- Limit Order: Set a specific price; the order will only execute if the market reaches this price.
- Market Order: Execute immediately at the current market price.
- Trigger Order: Automatically executes a trade when the set trigger price is reached.
5. Set Take-Profit and Stop-Loss: To control risk, it’s recommended to set both take-profit and stop-loss levels.
6. Execute the Trade: Choose Buy (Long) or Sell (Short), then click “Confirm” to execute the trade.
Web Version:
The web version operates similarly to the mobile app but offers more tools for technical analysis, such as K-line charts, which are ideal for users who want to analyze the market in-depth.
Step 3: Understand Key Elements of Contract Trading
1. Funding Rate: BitTap’s perpetual contracts settle the funding rate every 8 hours. Traders may need to pay or receive this rate to keep contract prices in line with the spot market.
2. Margin: Contract trading uses margin, meaning you only need to pay a portion of the contract’s value to participate in the trade. The initial margin depends on the leverage you choose.
3. Fees: BitTap charges different fees depending on the order type. Maker and taker fees are applied differently, with makers generally enjoying lower fees.
Important Tips:
- Start Small: For your first trade, consider using a small amount of funds to experiment and get familiar with the process before scaling up.
- Risk Control: Use tools such as stop-loss and take-profit to protect your funds from market volatility.
- Continuous Learning: Contract trading involves complexity, and beginners can improve their skills by continuously learning and practicing.
By following these steps, you can easily complete your first contract trade on the BitTap platform.
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