In the digital currency trading market, perpetual Bitcoin contracts have always attracted much attention. Investors are often confused about how many contracts should be opened to be a reasonable operation strategy. In this article, we will explore the importance of the number of openings and provide some practical suggestions to help you achieve better returns in perpetual Bitcoin contract trading.

 Characteristics and risks of perpetual Bitcoin contracts

Perpetual Bitcoin contracts are a derivative instrument with the characteristics of high risk and high return. Compared with traditional spot trading, contract trading is more flexible and can magnify profits through leverage, but it also comes with greater risks. In the choice of the number of openings, it is necessary to make a reasonable decision based on your own risk preferences and trading strategies.

 Single large position VS batch opening strategy

When choosing the number of openings, investors often face a choice: open a large position at one time, or open positions in batches and gradually build positions? For perpetual Bitcoin contracts, the batch opening strategy is more advantageous. By diversifying risks and gradually building positions, risks can be effectively controlled and the impact of market fluctuations on the investment portfolio can be reduced.

 Factors affecting the number of openings

The choice of the number of openings is affected by many factors. First of all, the market situation changes. Investors need to adjust the number of opening positions according to market trends and technical analysis. Secondly, personal trading strategies and risk tolerance. Different investors have different preferences and needs, and need to determine the most suitable number of opening positions according to their own situation.

 Smart opening strategy

When formulating an opening strategy, investors can consider the following suggestions. First, determine the number of opening positions according to market conditions and personal risk preferences. You can use a gradual position building method to diversify risks. Secondly, adjust the number of opening positions in a timely manner, keep an eye on market trends at any time, and respond flexibly. Finally, stay rational, avoid blindly following the trend, and stick to your own trading plans and strategies.

 Summary

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

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

Before answering the question of how many times is it reasonable to open a perpetual Bitcoin contract, the editor of the Coin Circle would like to take you to understand what a perpetual contract is. Perpetual contracts, as its name suggests, are contracts that are permanently renewed. In the current digital currency derivatives trading market, perpetual contracts are a relatively new type of contract. Perpetual renewal means that if you do not take the initiative to close your position without a blowup, you can hold this contract forever. At present, the highest perpetual contract of Bitcoin can be opened to 40 times, so how many times is it reasonable to open a perpetual Bitcoin contract? Now let the editor of the Coin Circle tell you.

 How many times is it reasonable to open a perpetual Bitcoin contract?

In the traditional futures market, users do not directly buy and sell physical goods, and the exchange of physical goods only occurs when the contract expires. Some futures contracts also adopt the design of cash delivery, that is, no physical exchange is carried out when the contract expires, and only the difference is delivered in cash.

At present, the vast majority of Bitcoin contracts on the market are contracts that do not carry out physical delivery (except Bakkt exchange).

The absence of a delivery date means that there is no mandatory constraint on the price of a perpetual contract. The long and short parties can arbitrarily agree on an outrageous price to be the counterparty, which can easily turn it into a gambling tool. In order to avoid this situation, perpetual contracts introduce the concept of spot price index and use corresponding mechanisms to make the price of perpetual contracts return to the spot index price. 

For example, some exchanges have the following provisions for Bitcoin perpetual contracts: 

(1) At a certain moment, when the futures price is greater than and significantly deviates from the spot price, the longs need to pay the shorts. 

(2) At a certain moment, when the futures price is less than and significantly deviates from the spot price, the shorts need to pay the longs. 

(3) The greater the degree of deviation, the higher the payment rate. 

Under normal circumstances, the price of a futures contract will be different from the spot price. The farther the contract expiration date is, the more uncertain people's expectations are, the higher the price uncertainty is, and the larger the price difference between the contract and the spot price may be. When delivery is approaching, the contract price and the spot price will converge, which is the so-called delivery contract. 

"Perpetual contract" is a special futures contract. Unlike traditional futures, perpetual contract has no expiration date. Therefore, in the transaction of perpetual contract, users can hold the contract until the position is closed.

It is best to use 10x or 20x leverage for Bitcoin perpetual contract, which is safer and more secure. If you see a wave of market, rebound or decline, you will not be forced to close the position.

 How to calculate the handling fee of Bitcoin perpetual contract?

The contract handling fee is charged according to your position size. Taking the delivery contract handling fee of LV1 users as an example, the placing order handling fee is 0.02%, and the taking order handling fee is 0.05%. You use 1 EOS to open a position with 10x leverage. If you open a full position, your position size is 10 EOS, then the opening fee is 0.002-0.005 EOS, and the closing fee is the same, which is charged according to the number of your closed positions. The specific amount charged depends on your transaction method. Take the limit order as an example: if you complete all orders, the handling fee is 0.005 EOS. If you complete all orders, the handling fee is 0.002 EOS. If you complete some orders and some orders, the handling fee is between 0.002-0.005 EOS. Order-taking means that your order is actively traded with other people's orders, which is an active transaction. Order-pending means that your order is posted in the market and waits for transaction, which is a passive transaction.

In summary, this is the answer of the editor of the currency circle to the question of how many times the perpetual Bitcoin contract is reasonable. I hope that investors who want to do contracts will have a better understanding of perpetual contracts after reading this article. The editor of the Coin Circle would like to kindly remind all investors that although the Bitcoin perpetual contract is a very innovative financial derivative, if you want to play with the Bitcoin perpetual contract, you need a lot of professional knowledge to support it, and the threshold is still very high. Not only that, if you only have knowledge but no practical experience, it will not work. It also requires you to have very rich trading experience. Therefore, in the face of such a transaction that requires a lot of technology, everyone should still participate with caution.

In perpetual Bitcoin contract trading, the choice of the number of opening positions is crucial. Through reasonable opening strategies and risk control, investors can better grasp market opportunities and achieve stable investment returns. When formulating an opening strategy, it is necessary to comprehensively consider market factors, personal risk preferences and other factors to formulate a trading plan that suits you. I hope that the suggestions provided in this article can help investors better conduct perpetual Bitcoin contract trading and achieve better investment returns.