What Are ETH Perpetual Contracts?
ETH perpetual contracts are derivative financial instruments tied to Ethereum's price, allowing traders to speculate without expiration dates. These leverage-based contracts enable long (bullish) or short (bearish) positions, making them popular among crypto investors. Major exchanges like Binance and OKX support ETH perpetual contracts.
Step-by-Step Trading Guide
1. Account Setup
- Register on Binance using email and mobile verification.
- Complete KYC verification (ID + facial recognition via app).
2. Fund Your Account
- Deposit USDT via C2C marketplace or crypto transfers.
- Transfer funds from "Wallet" to "Futures Trading Account."
3. Contract Configuration
| Setting | Option |
|---|---|
| Margin Mode | Cross/Isolated |
| Position Mode | One-way/Hedge |
| Leverage | 2x–100x (adjust based on risk tolerance) |
4. Placing Orders
- Limit Order: Set entry price and contract amount.
- Market Order: Instant execution at current price.
👉 Maximize profits with optimal leverage strategies
5. Risk Management Tools
- Stop-loss: Auto-closes losing positions.
- Take-profit: Locks in gains at target price.
- Trailing stop: Follows favorable price movements.
Pro Trading Strategies
1. Trend Trading
- Identify primary trend using EMA(50) and EMA(200).
- Enter positions at retracements (Fibonacci levels work well).
2. Breakout Trading
- Trade range breaks with volume confirmation.
- Ideal pairs: ETH/USDT, ETH/BTC.
3. Scalping
- 5–15 minute timeframe trades.
- Requires tight spreads and low fees.
Risk Control Essentials
- Never risk >5% capital per trade.
- Use negative balance protection (available on Binance).
- Avoid over-leveraging during high volatility.
FAQ Section
Q: What's the minimum investment for ETH contracts?
A: Typically $10–$50, depending on exchange requirements.
Q: How does funding rate affect positions?
A: Longs pay shorts when positive (and vice versa), usually every 8 hours.
Q: Can I hold perpetual contracts long-term?
A: Yes, but monitor funding costs and adjust leverage accordingly.
Q: What causes liquidations?
A: When margin balance falls below maintenance margin (varies by leverage).
👉 Master advanced contract trading techniques
Final Tips
- Start with paper trading to practice.
- Diversify across spot and futures positions.
- Stay updated on Ethereum network upgrades (e.g., Dencun).
Remember: 80% of traders lose money in leveraged products—always prioritize capital preservation over greed.