What is crypto contract?
◆ Bex500 offers BTC perpetual contract and other 40+ contracts.
Take perpetual contract as an example, it includes 4 trading pairs: BTC/USDT, ETH/USDT, XRP/USDT, LTC/USDT
◆ Trading in Bex500 is actually trading the crypto contract, when you trade BTC/USDT, it has the same effect of trading Bitcoin. Because, 1 BTC/USDT contract is worth 1BTC
What is trading crypto contracts?
◆ Unlike other exchange where you can only start trading with “buying” bitcoin, Bex500 allows you to start trading with selling. It is used when you predict a downward bitcoin price.
◆ When you buy 1BTC/USDT contract, you are actually buying the BTC and selling USDT, like this
◆When you sell 1BTC/USDT contract, you are actually selling the BTC and buying USDT, like this
◆ The action of “buying” or “selling” in the first step is called “open a position”.
The opposite action of “selling” or “buying” is called “close a position”, these are the terms we will introduce in Glossary of trading items
What is crypto margin trading?
◆ Margin trading is the ability for you to enter into positions (either buy or sell) larger than your account balance. With a little bit of cash, you can open a much bigger trade in the crypto market.
◆ In the case above, when you buy 1 BTC/USDT, you don’t have to pay 1 btc worth of USDT, instead you are required to pay only 1% of it. If the current price is $8,000, only $80 is required.
◆ Margin trading enable you to profit in both bull and bear market, amplify your profits up to 100x leverage, and to hedge against the risks of bitcoin price going down.