1. Introduction to the Contract Mode
Contract mode refers to a trading mode based on smart contracts, allowing users to switch spot, margin, and various types of contracts (delivery contracts, perpetual contracts, options contracts) in the same account with one click, eliminating the need for multiple account operations, and flexibly managing margin and risk. This article will provide in-depth interpretation of what contract mode is, applicable scenarios and advantages, core professional terminology, operating processes on Gate, as well as risks and precautions, to help you quickly understand and safely apply contract mode.
2. Applicable scenarios and advantages
2.1 Unified Fund Management
In contract mode, all trading varieties share the same margin account, avoiding the delay and cost of funds transferring back and forth between spot and contract accounts.
2.2 Multiple Strategy Switching
Traders can switch between spot grid, leverage amplification, perpetual contract long and short, options hedging and other strategies at any time to quickly respond to market changes and improve the efficiency of strategy combinations.
2.3 Reduce operational complexity
On the same interface, you can view various positions and risk indicators to reduce the risk of misplacing orders and fund management due to multi-account operations.
3. Core Professional Terminology
| Terminology | Meaning |
|---|---|
| Cross Margin (Isolated) | Each position uses margin independently. When a position is liquidated, only that position will be affected, and other funds in the account will not be used. |
| Cross | All positions in the shared account share the margin, and the risks and profits are borne by the entire account, which can avoid liquidation of a single position but may affect all positions. |
| Perpetual contract | Contracts without an expiration date use the funding rate mechanism to keep the contract price close to the underlying spot price, allowing for long and short positions with leverage. |
| Futures contract (Futures) | Standardized contracts with fixed expiration and delivery dates, which can be used for hedging or speculation. |
| Leverage | To achieve great success with a small amount of margin, leverage a larger nominal position with a smaller amount of margin. The higher the leverage, the more obvious the amplification of risks and rewards. |
| Funding Rate | The fees regularly paid or received by both long and short parties in perpetual contracts, used to anchor the price difference between the contract and the spot. |
| Liquidation | When the margin is insufficient to support the required margin for maintaining the current position, the system will automatically liquidate the position to prevent liabilities. |
4. Use contract mode on Gate
4.1 Enter contract mode setting
Log in to Gate, click on the top navigation bar ‘Futures’, and master futures trading skills from scratch
You can also click to view
Contract Getting Started Guide , fully understand the relevant content of the contract mode.
Start contract trading at 4.2
Transfer Margin: Click ‘Transfer’ on the contract page to transfer USDT or other supported assets to the contract account to start trading.
Select Contract Type: Support various contract types such as USDT Perpetual, BTC Perpetual, and Delivery Contract.
Set Parameters: Choose isolated or cross margin based on risk preference, set leverage, take profit, and stop-loss.
Place Order: You can place orders according to your preference, including market orders, limit orders, and conditional orders.
5. Note
Leverage Setting High leverage can amplify profits, but also losses. It is recommended that you invest cautiously after fully understanding the leverage mechanism and contract trading rules.
Margin Management In full position mode, the liquidation of a single position may affect all positions in the account, while in isolated margin mode, the risk of a single position can be limited.
This content does not constitute any offer, solicitation, or advice. You should always seek independent professional advice before making any investment decisions. Please note that Gate may restrict or prohibit all or part of its services from restricted areas.
