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What does contract trading mean Is contract trading a futures c

Date:2024-06-05 18:34:31 Channel:Build Read:

In the financial market, contract trading is a common and important form of trading. People often wonder whether contract trading belongs to futures. This article will explore the meaning, characteristics and relationship of contract trading with futures, and give you a glimpse of this eye-catching trading method in the financial market.

Contract trading, as the name implies, refers to a trading method in which both parties agree to buy and sell a certain asset or commodity by signing a contract. This form of trading is widely used in various fields, including financial markets, real estate, etc. Compared with spot trading, contract trading is more flexible, and both parties can flexibly agree on trading terms according to their own needs and market conditions, thereby achieving better risk control and maximizing returns.

In the financial market, contract trading is often misunderstood as futures trading. However, the two are not exactly the same. Futures trading is a standardized contract in which the buyer and seller agree to buy and sell the underlying asset at an agreed price at a specific time in the future, while contract trading is more flexible, and both parties can agree on trading terms according to their own needs and wishes, without strict standardization requirements. Therefore, contract trading is more personalized and customized, and can better meet the needs of market participants.

In actual operation, the process of contract transaction usually includes the following steps: first, the two parties reach a transaction intention and begin to negotiate the transaction terms; then, the two parties sign a formal contract and determine the key terms such as the transaction subject, quantity, price, etc.; then, the two parties perform the contract at the agreed time and price to complete the transaction. During the entire transaction process, both parties need to pay close attention to market changes and adjust the transaction strategy in time to cope with the risks and opportunities brought by market fluctuations.

Let's take an example to illustrate the actual operation of contract transactions. Suppose Company A needs to purchase a batch of raw materials. In order to reduce the risks brought by price fluctuations, Company A signed a contract with the supplier, agreeing to purchase a certain amount of raw materials at a fixed price at a certain time in the future. Through this contract transaction method, Company A can effectively avoid the risk of market price fluctuations, ensure the stability of production costs, and improve corporate profitability.

In general, contract transactions, as a flexible and personalized transaction method, are of great significance in the financial market. It can not only help market participants avoid risks and maximize profits, but also provide a stable operating environment for enterprises. Therefore, understanding and mastering the characteristics and operation methods of contract transactions are of great significance to both investors and enterprises.

In the financial market, contract transactions are a common and important form of transaction. People often wonder whether contract trading belongs to futures. This article will explore the meaning, characteristics and relationship of contract trading with futures, and give you a glimpse of this eye-catching trading method in the financial market.

Contract trading, as the name implies, refers to a trading method in which both parties agree to buy and sell a certain asset or commodity by signing a contract. This form of trading is widely used in various fields, including financial markets, real estate, etc. Compared with spot trading, contract trading is more flexible, and both parties can flexibly agree on trading terms according to their own needs and market conditions, thereby achieving better risk control and maximizing returns.

In the financial market, contract trading is often misunderstood as futures trading. However, the two are not exactly the same. Futures trading is a standardized contract in which the buyer and seller agree to buy and sell the underlying asset at an agreed price at a specific time in the future, while contract trading is more flexible. Both parties can agree on trading terms according to their own needs and wishes, and there are no strict standardization requirements. Therefore, contract trading is more personalized and customized, and can better meet the needs of market participants.

In actual operation, the process of contract transaction usually includes the following steps: first, the two parties reach a transaction intention and begin to negotiate the transaction terms; then, the two parties sign a formal contract and determine the key terms such as the transaction subject, quantity, price, etc.; then, the two parties perform the contract at the agreed time and price to complete the transaction. During the entire transaction process, both parties need to pay close attention to market changes and adjust the transaction strategy in time to cope with the risks and opportunities brought by market fluctuations.

Let's take an example to illustrate the actual operation of contract transactions. Suppose Company A needs to purchase a batch of raw materials. In order to reduce the risks brought by price fluctuations, Company A signed a contract with the supplier, agreeing to purchase a certain amount of raw materials at a fixed price at a certain time in the future. Through this contract transaction method, Company A can effectively avoid the risk of market price fluctuations, ensure the stability of production costs, and improve corporate profitability.

In general, contract transactions, as a flexible and personalized transaction method, are of great significance in the financial market. It can not only help market participants avoid risks and maximize profits, but also provide a stable operating environment for enterprises. Therefore, understanding and mastering the characteristics and operation methods of contract transactions are of great significance to both investors and enterprises.

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Note: The above exchange logo is the official website registration link, and the text is the APP download link.


Contract trading appeared in the cryptocurrency circle in 2013, but only a few investors were interested in it at that time. With the rise of Bitcoin in recent years, more and more investors have become interested in virtual currencies, which has also led to the rise of contract trading. Even so, most cryptocurrency novices know nothing about contract trading. So, what does contract trading mean? Is contract trading a futures contract? In response to these questions, the editor of the cryptocurrency circle will talk to you in detail about contract trading.

 What does contract trading mean?

Contract trading is based on the same principle as futures trading. It is a two-way transaction. You can go long or short. Before trading, both parties should agree on matters such as digital currency and then trade at the agreed time. Regardless of whether the digital currency rises or falls in price at the trading time, and whether the result is a profit or a loss, the transaction must be carried out according to the previous agreement. (Uranus Singapore, contract trading, 100% position, immediate return upon closing, WeChat phone number: 17862513013) For example, if you think that Bitcoin is on an upward trend in the short term, you can make a long position. At this time, Laobi only needs to pay a certain margin to the platform and add 50 times leverage, so that you can make full use of the funds. When the price rises, Laobi will sell it again. After deducting the transaction fees, the rest is what Laobi earns; similarly, shorting is the same.

 Is contract trading a futures contract?

Contract trading includes futures trading, and it can also be said that futures contracts are contract trading.

Contract trading is divided into delivery contracts and perpetual contracts. According to the literal meaning, it can be understood that "delivery contracts" have a delivery date, and "perpetual contracts" have no expiration date, so there is no limit on the holding time. When the market meets the expectations of investors, delivery can be made.

According to the different delivery methods, contracts can be divided into perpetual contracts and fixed-term contracts.

The main difference between the two is that fixed-term contracts have a fixed delivery date, while perpetual contracts do not. Among them, fixed-term contracts are divided into three categories according to the delivery time: weekly contracts, biweekly contracts and quarterly contracts.

 Contract Trading Beginner's Tutorial

Take perpetual contracts as an example. OKX perpetual contracts are contract products settled with digital assets. Investors can obtain profits from the rise or fall of digital asset prices by buying long or selling short. Perpetual contracts have no expiration date and never expire.

(I) Account registration

1. Open the official website of OKEx (), download the OKX
APP, click "Register/Login" on the homepage, click "Register Now", enter the email address, click "Register", and then enter the six-digit verification code received in the email, which is valid for 10 minutes

2. Next, you need to verify your mobile phone number. Enter your mobile phone number, click "Verify Now", and then enter the mobile phone verification code. The verification code is valid for 10 minutes, and click "Next"

3. Make sure that the selected place of residence is consistent with the information shown on the certificate. In order to protect the security of the account, please set the account password according to the prompts. After the password is set, click "Next" to complete the account registration

4. After completing the registration and login, click the button in the upper left corner of the homepage, click the top of the page on the jump page to enter the personal center, and go to the personal information and settings page. On the personal information page, click identity authentication and complete the authentication according to the prompts.
After passing the Lv.1 level authentication, you can trade digital assets. You can also choose to continue with the Lv.2 advanced authentication to obtain higher trading permissions.

(II) Trading Settings

1) To conduct contract trading, you need to open the account mode and set it to single-currency margin mode or cross-currency margin mode.

2) You can continue to set up the contract, select the trading unit and order mode in a personalized way.

Delivery contracts are divided into USDT margin delivery contracts and currency-margined delivery contracts. Here, we take the currency-margined weekly delivery contract as an example.

1. Similarly, transfer our digital assets from the capital account to the trading account. If it has been completed, no additional transfer operation is required.

2. On the trading page, click the drop-down button on the right side of the currency pair, enter the currency in the search box, select delivery in the margin trading, and select the currency-margined contract with a contract period of the week, next week, quarter or next quarter. Here, we take the quarterly contract as an example.

3. Set the leverage multiple, select the account mode, order type, enter the price and quantity, and click Buy to open long (bullish) or Sell to open short (bearish). For unfulfilled orders, you can click Cancel Order to cancel the order.

4. After the pending order is executed, you can view the relevant data of the order in the position interface, such as margin, income, yield, estimated forced liquidation price, etc.

5. You can set stop profit and stop loss in the position interface, and you can also choose to close the position, enter the closing price and closing quantity to determine the closing position, or choose the market price to complete the closing operation.

Through the above introduction, I believe that everyone has some understanding of the meaning of contract trading. The editor of the currency circle reminds investors that when investing in virtual currency, they must find a formal large trading platform, and the trading time must not be frequent. In particular, it is recommended to wait and see before the big news comes out, and don’t bet on the news, which will easily trap yourself and cause huge economic losses. If you want to know more about contract trading, you can pay attention to the currency circle. The editor of the currency circle will continue to update related reports later!

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