Coin On to Launch ID1-20 Times U-Standard Perpetual Contract: All You Need to Know

03/23/2023 05:40 • Metaverse Matters • 159 views

On March 23rd, according to an official announcement, Coin On announced that it would launch the ID1-20 times U-standard perpetual contract at 22:30 Beijing time on March 24th, 2023.

Coin An will go online with ID 1-20 times the U standard perpetual contract

If you’re an avid crypto investor or even a newbie, you might have heard of Coin On, one of the leading cryptocurrency exchanges in the world. Recently, Coin On announced the launch of the ID1-20 times U-standard perpetual contract, which is set to take place on March 24th, 2023. In this article, we will take a closer look at what this announcement means and what potential advantages and risks it entails.

What is the ID1-20 Times U-Standard Perpetual Contract?

To fully understand the significance of this announcement, it’s important to know what the ID1-20 times U-standard perpetual contract is. A perpetual contract is a type of futures contract that doesn’t have an expiration date. The ID1-20 times U-standard is a financial product offered by Coin On that lets traders place bets on the future price of cryptocurrencies, without owning the underlying asset. In other words, investors can take a long or short position on the value of an asset, without actually holding the asset.

How Does the ID1-20 Times U-Standard Perpetual Contract Work?

The ID1-20 times U-standard perpetual contract is a leveraged financial product, which means that investors can trade with a margin rather than the full value of the asset. Coin On allows investors to use up to 20 times their initial capital to trade these contracts, which increases the potential reward but also enhances the risk.
For instance, if an investor buys a $1,000 perpetual contract at 2x leverage, they will only need to put up $500 of capital. If the price of the underlying asset increases by 10%, the investor will earn a profit of $200, which is equivalent to 40% of their invested capital. However, if the price of the asset decreases by 10%, the investor will lose $200, which is equivalent to 40% of their invested capital.

Advantages of Trading ID1-20 Times U-Standard Perpetual Contracts

There are several advantages to trading perpetual contracts, such as the ID1-20 times U-standard offered by Coin On. For starters, investors can gain exposure to cryptocurrencies without actually owning them, which eliminates the need for a wallet or the risk of being hacked. Additionally, Coin On offers 24/7 trading, which means that investors can take advantage of market opportunities at any time, day or night. Lastly, perpetual contracts allow investors to use leverage, which amplifies their potential returns.

Risks of Trading ID1-20 Times U-Standard Perpetual Contracts

However, trading perpetual contracts also carries significant risks. First, the leverage amplifies not only potential gains but also potential losses. In other words, investors can lose more than their initial capital if their trades go against them. Secondly, perpetual contracts are highly volatile, which means that prices can change rapidly and unpredictably. Investors need to have a high tolerance for risk and be willing to monitor their positions frequently to avoid unexpected liquidations or margin calls.

Conclusion

Coin On’s ID1-20 times U-standard perpetual contract is a new financial product that aims to provide investors with exposure to cryptocurrencies without requiring them to own the underlying assets. It’s important to understand the risks and benefits associated with trading perpetual contracts before making any investments. While the potential rewards can be significant, investors also need to be aware of the potential risks and have a solid strategy in place to manage their positions.

FAQs

#1. Can anyone trade the ID1-20 times U-standard perpetual contract?

Yes, anyone with a valid Coin On account can trade the ID1-20 times U-standard perpetual contract.

#2. Is trading perpetual contracts risky?

Yes, trading perpetual contracts is risky, as the leverage used can amplify both gains and losses.

#3. Can investors lose more than their initial capital when trading perpetual contracts?

Yes, investors can lose more than their initial capital if their positions go against them. This is known as liquidation or margin call.

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