What Is Perpetual Futures?
The trading method available at Walbi is known as Perpetual Futures.
Perpetual futures is a type of derivative financial instrument used in the cryptocurrency and traditional futures markets. It is designed to allow traders to speculate on the price movements of underlying assets—such as cryptocurrencies, like Bitcoin and Ethereum—without actually owning the underlying assets.
How Does Perpetual Futures Trading Work?
At its core, a perpetual futures contract is designed to give traders exposure to assets and markets without having to take possession of the underlying asset (which in this case is a cryptocurrency). Perpetual futures contracts enable leveraged trading, with contract sizes of up to 500x. This means that with a relatively small capital outlay, traders can open a much larger position. This can help leverage profits, but it also carries greater risk.
The price of the perpetual futures contract is based on the underlying asset, but there is no agreement on the delivery date and neither buyer nor seller is forced to enter into the trade. Instead, contracts can be entered or exited at any point. As such, the contract is ‘perpetual’.
Advantages of Perpetual Futures Trading
Perpetual futures contracts also offer several advantages for traders. For example, traders can access the market 24/7, with lower funding rates relative to spot and margin trading. Also, perpetual futures have up to 500x leverage, allowing traders to open large positions with relatively small capital outlays. Lastly, traders have the ability to trade both long and short positions.
Perpetual futures are a great way to enter the cryptocurrency and traditional futures markets. They allow traders to speculate on price movements without taking possession of underlying assets, and they offer access to up to 500x leverage. However, traders should keep in mind that leveraged trading increases risk, and perpetual futures contracts are susceptible to high volatility.
Here are some key features and characteristics of perpetual futures trading:
No Expiry Date
Funding Mechanism
Leverage
Continuous
Settlement and Liquidation
Price Tracking
How to start a deal at Walbi?
Firstly, you need to have funds in your account and for this to be done, you can use the balance of your crypto wallet used when creating your account or another crypto wallet you wish.
After making the deposit and the amount has been credited to your account after the necessary confirmations, you can create new orders using the options: Current price order or Custom price Order.
You'll need to pick the asset you wish to trade. The minimum amount to initiate a trade is 0.10 USDT, but this can change depending on the token used. The leverage can range from 1x to 500x, based on the asset you select.
Optionally, you can configure the Take profit or Stop loss for the transaction, making it safer and more efficient.
Next, you will need to select the value of this transaction, remember that the minimum value per transaction is 0.10 USDT.
After selecting the transaction value, you can select the Leverage of the order, which can vary between 1x and 500x.
Risk management and profit control tools such as Take Profit and Stop Loss can be active and adjusted before the start and during the course of the transaction.
Transactions can be opened in two modes both as orders: Current Price or Custom Price.
A custom price order allows you to place an order at a specific or a better price. A buy limit order will be filled if the price matches or is lower than your limit price, while a sell limit order will be filled at or higher than your limit price.
Please note that a custom price order does not guarantee to execute.
Current orders are matched immediately at the best available price.
After defining all the criteria for your transaction, don’t forget to click on “Current Price” or “Custom Price”
What are the benefits of using stop-loss or take profit?
More information by clicking on the arrow.
More information by clicking on the arrow.
Risk Management:
Limit Losses: Stop-loss orders allow traders to set a predefined price level at which their position will be automatically closed if the market moves against them. This helps limit potential losses and prevents emotional decision-making during periods of market
volatility.
Protect Capital: By using stop-loss orders, traders can protect their trading capital and ensure that they don't lose more than they are willing to risk on a particular trade.
Profit Protection:
Secure Gains: Take-profit orders allow traders to lock in profits at a predetermined price level. This ensures that traders don't get greedy and hold onto a winning position for too long, only to see their profits disappear as the market reverses.
Reduce Emotional Decision-Making: Take-profit orders help traders stick to their trading strategy and avoid making impulsive decisions based on emotions, such as fear or greed.
Automation:
24/7 Trading: Perpetual futures markets operate 24/7, and traders cannot monitor them continuously. Profit-taking and stop-loss orders enable traders to automate their trading strategy, ensuring that their positions are managed even when they are not actively trading.
Emotion-Free Execution: Automated orders execute without emotions, which can be a significant advantage in a highly emotional and volatile market.
Consistency:
Discipline: Implementing profit-taking and stop-loss orders enforces discipline in a trader's strategy. This discipline is crucial for long-term success in trading.
Consistent Risk Management: By using these orders consistently, traders can maintain a consistent approach to risk management, helping them avoid large losses and secure profits over time.
Flexibility:
Tailored Strategy: Traders can customize their profit-taking and stop-loss levels based on their risk tolerance, trading strategy, and market conditions. This flexibility allows for a personalized approach to trading.
Peace of Mind:
Reduced Stress: Knowing that there are predefined exit points for each trade can reduce the stress and anxiety associated with trading. Traders can have more peace of mind, knowing that their positions are protected.
While profit-taking and stop-loss orders offer many benefits, it's essential for traders to use them judiciously and in conjunction with a well-thought-out trading plan. No strategy can eliminate all trading risks, but these orders help manage and mitigate those risks, making them valuable tools for traders in perpetual futures markets.
How to check my open orders both for Current Price order and Custom Price order?
The ongoing transactions related to Current Price orders can be found in the top left corner of your screen in the “Positions” window, transactions related to the Custom Price orders modality can be found in the “Orders” window.
You can also see your transactions that have already been completed by accessing the “History” window.
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