BTC社区

How to trade U-margined contracts? The trading process and skills for U-margined contracts

OKX cryptocurrency trading platform, register with the dedicated link to enjoy a 20% lifetime fee rebate!

OKX registration: https://www.okx.com/join/BITCOIN369 (click the link to register)

Binance registration: https://www.binance.com/join?ref=BITCOIN369

Domestic registration installation package download: https://96927.cc/

With the continuous development of the digital currency market, derivatives trading has become one of the important ways for many investors to achieve asset appreciation. U-margined contracts, as a new type of digital currency derivative, attract a large number of investors due to their special pricing unit and trading method. This article will explain in detail how to trade U-margined contracts, the trading process of U-margined contracts, and some practical trading skills to help readers better understand the advantages and operation methods of U-margined contracts.

I. Overview of U-margined contracts
U-margined contracts (USDT-Margined Futures Contracts) are futures contracts priced and margined in the stablecoin Tether (USDT). In this type of contract, investors use USDT as margin to conduct futures trading. Since USDT is a stablecoin pegged to the US dollar, U-margined contracts can reduce the impact of market volatility on traders, making them suitable for those who wish to avoid extreme price fluctuations.

Unlike traditional digital currency contracts (such as Bitcoin contracts and Ethereum contracts), U-margined contracts do not directly involve the underlying assets (such as BTC or ETH) during trading, but are settled through USDT. This allows investors to participate in market fluctuations and potentially profit without directly holding digital assets.

II. Trading process of U-margined contracts
The process of trading U-margined contracts is divided into several steps, from account preparation to the execution of actual trades, each of which requires investors to maintain a clear understanding. Below is a step-by-step introduction to the trading process of U-margined contracts.

1. Register and complete identity verification

Investors need to choose a reliable digital currency trading platform and register an account. During registration, the platform usually requires personal identity information and identity verification to ensure the security of the account and compliance with relevant regulations. This step is crucial for ensuring fund safety.

2. Deposit USDT

After completing account registration, investors need to deposit USDT into the trading platform. This is usually done by transferring assets from their own wallet to the exchange's account using the USDT address provided by the platform. Most platforms support various deposit methods, such as direct transfers from cryptocurrency wallets or purchasing USDT with fiat currency.

It is important to ensure that the transfer network for USDT matches the network supported by the platform to avoid asset loss.

3. Choose trading pairs

Once the deposit is successful, investors can choose the trading pairs they are interested in. U-margined contracts support various cryptocurrency trading pairs, such as BTC/USDT, ETH/USDT, etc. When selecting trading pairs, investors can make decisions based on market conditions and their own investment strategies.

4. Set leverage multiplier

An important feature of U-margined contracts is the support for leveraged trading. Setting the leverage multiplier can help investors amplify their trading profits, but it also increases the risk of losses. Generally, trading platforms provide various leverage options, and investors can set an appropriate leverage multiplier based on their risk tolerance.

For example, if a 10x leverage is set, the investor only needs to invest 1 USDT as margin to control a contract value of 10 USDT. If the market trend is unfavorable, losses will be exacerbated, so it is crucial to choose the leverage multiplier wisely.

5. Open a position

After selecting the leverage and trading pair, investors can start opening positions. There are two main ways to open positions in U-margined contract trading: going long and going short.

Going long (bullish) means that the investor expects the market price to rise, thus buying contracts. If the market price rises, the investor can profit from it. Conversely, going short (bearish) means that the investor expects the market price to fall and profits by selling contracts.

In practice, investors need to click the corresponding trading button and enter the quantity to buy or sell, leverage multiplier, and other information before confirming. After opening a position, the platform will update the investor's floating profit and loss in real-time based on market price fluctuations.

6. Close a position

When investors believe that the market conditions meet their expectations, they can choose to close their positions to lock in profits or stop losses. Closing a position refers to closing the currently held position and settling the trading profit and loss. In U-margined contracts, the settlement when closing a position is done in USDT, meaning that regardless of how the price of the underlying asset (such as BTC) fluctuates, the profit and loss will be settled in USDT.

Investors can choose to close positions manually or set take-profit or stop-loss points, allowing the system to automatically close positions when the market price reaches the set target, avoiding further losses due to market fluctuations.

7. Settlement and withdrawal

Once a position is closed, the trading profit and loss will be settled in real-time to the investor's account, forming withdrawable USDT. Investors can choose to continue trading or withdraw the USDT in their account to their own wallet for asset preservation or transfer.

III. Trading skills for U-margined contracts
Although the trading process for U-margined contracts is relatively simple, investors still need to master certain skills to achieve stable profits in a competitive market. Below are some common trading skills for U-margined contracts to help investors improve their trading success rate.

1. Market analysis and judgment

Market analysis is the foundation of U-margined contract trading. Investors need to analyze market trends through fundamental analysis and technical analysis. Fundamental analysis includes studying market news, project dynamics, and the macroeconomic environment; while technical analysis involves predicting future market directions through various charts, indicators, and historical price trends.

For example, investors can determine the timing for buying and selling by observing support and resistance levels on price charts. If the market is in an upward trend, investors can choose to go long; if the market is in a downward trend, they can choose to go short.

2. Risk control and capital management

Risk control is one of the most important aspects of trading, especially in U-margined contracts, where leverage can quickly amplify losses. Therefore, investors need to establish clear take-profit and stop-loss strategies to ensure the safety of their funds.

For example, investors can set a fixed percentage for stop-loss points, automatically closing positions when losses reach a certain percentage to avoid further losses. Properly allocating funds for each trade can help avoid over-concentration of investments.

3. Timely use of take-profit and stop-loss

Take-profit and stop-loss are key tools for investors to protect profits and control losses during trading. In U-margined contract trading, market fluctuations can be very volatile, and timely setting of take-profit and stop-loss can help investors avoid losses caused by adverse market movements.

For example, if an investor expects the price to rise during a long trade, they can set a reasonable take-profit point and automatically close the position as the price approaches; setting a stop-loss point can prevent excessive price pullbacks that lead to losses.

4. Utilize appropriate leverage multipliers

Leveraged trading allows investors to amplify profits, but it also increases risks. When trading U-margined contracts, investors should choose leverage multipliers wisely based on market conditions and personal risk tolerance. Generally, beginners can choose lower leverage multipliers and gradually increase their risk management capabilities.

For example, if the market is unstable or the trend is unclear, it is advisable to use lower leverage to avoid losses due to excessive market fluctuations.

IV. Frequently Asked Questions

1. What is the difference between U-margined contracts and coin-margined contracts?

The main difference between U-margined contracts and coin-margined contracts lies in the settlement method. U-margined contracts are traded and settled using USDT as the pricing unit and margin, while coin-margined contracts are priced and settled using the underlying assets (such as BTC or ETH). The advantage of U-margined contracts is that they can reduce the risks associated with price fluctuations, making them suitable for investors who do not wish to hold digital assets directly.

2. How to choose the appropriate leverage multiplier for U-margined contracts?

Choosing the appropriate leverage multiplier should be based on market volatility and personal risk tolerance. Generally, lower leverage multipliers are suitable for beginners or investors with lower risk preferences, while higher leverage multipliers are suitable for experienced investors. Investors should make rational leverage choices based on their capital size, market conditions, and risk preferences.

3. Can stop-loss operations be performed on U-margined contracts?

Yes, U-margined contracts support stop-loss operations. Investors can set stop-loss points when opening positions, and once the market price reaches the predetermined stop-loss point, the system will automatically close the position to stop losses. Investors can also achieve stop-loss by manually closing positions.

4. Are U-margined contracts suitable for all investors?

U-margined contracts are suitable for investors who wish to profit from the volatility of the digital currency market, especially those who have a certain risk tolerance. Due to the involvement of leveraged trading, if investors do not have sufficient market analysis and risk control capabilities, novice investors should participate cautiously.

V. Conclusion
U-margined contracts, as a flexible trading method for digital currency derivatives, provide investors with low-risk, high-reward trading opportunities. Only by mastering the correct trading processes and skills can investors effectively avoid market volatility risks and achieve long-term profits. During the trading process, investors should always pay attention to market dynamics, maintain reasonable risk management, and continuously improve their trading skills. By accumulating experience, trading U-margined contracts will become a powerful tool for wealth appreciation.