How to use Perpetual Trading?
Last updated
Last updated
FusionX is a decentralized crypto exchange offering both spot and perpetual futures markets. While spot markets allow profit only when asset prices rise, futures contracts enable profits from price movements in either direction. A perpetual market is a type of futures contract without an expiry date, allowing you to buy or sell an asset indefinitely.
Here’s how to trade on FusionX's Perpetual Futures Market.
To begin, go to FusionX's platform and select Trade > Perpetual from the navigation menu. Then choose a specific perpetual futures market, such as BTC/USDT PERP, if you want to trade BTC against USDT.
Choose your trade direction:
Buy (Long) if you believe the asset price will rise.
Sell (Short) if you expect the price to drop.
Select your order type:
Market Order: Executes immediately at the current market price.
Limit Order: Executes only when the market price reaches your specified limit price.
Stop-Market and Stop-Limit Orders: Advanced order types that trigger automatically when a specified price is reached.
Enter the trade amount: Use the percentages next to the amount field (25%, 50%, 75%, 100%) to allocate a portion of your funds, or input a custom amount. Adjust leverage if desired using the leverage slider.
Submit and approve:
If you are a new user, you will need to sign in and enable trading first.
Confirm the order with your connected wallet. Once submitted, you’ll receive a notification indicating that your order has been placed.
You can track your orders on FusionX's trading page or on the Activity > Derivatives Orders page, where you’ll find:
Open Orders: Active but not fully executed orders, which you can cancel if needed.
Triggers: Active conditional orders.
Order History: A record of all orders, including canceled and filled.
Trade History: Displays only filled orders.
Market orders allow you to buy or sell instantly at the current price. They are immediate but may incur higher fees since they remove liquidity from the order book.
Limit orders let you specify a price to buy or sell at. They execute only if the market price matches or improves upon your limit, offering more control but without the immediacy of a market order.
Conditional orders (stop-limit and stop-market) are triggered when a specific price is reached, allowing you to automate buying or selling when the market moves in a particular direction. This can help manage risks or lock in profits.
A post-only order is a type of limit order that only adds liquidity to the order book. If it would execute immediately, it will be rejected.
Reduce-only orders are designed to decrease an existing position without creating a new one. This option prevents you from unintentionally opening a new position in the opposite direction.
Market or Limit Orders with Reduce-Only Option
For these orders:
No open positions: Orders are rejected if you don’t hold a position.
Existing positions: Orders are adjusted based on position size.
Conditional Orders with Reduce-Only Option
If there are no open positions or active orders, reduce-only conditional orders are rejected. When there’s an open position, these orders execute based on trigger prices and current positions.
Slippage tolerance limits how much the price can change between placing and executing an order. High slippage tolerance increases the likelihood of order execution but may lead to less favorable prices, while low tolerance reduces this risk but may result in canceled orders.
By following these guidelines, you can efficiently trade on FusionX's Perpetual Futures and Spot Markets, tailoring strategies to your needs using various order types and options for effective risk management.
For more information, visit Orderly Docs.
