Contract Trading

Open Position establishes long/short Futures Trading positions and selects the leverage multiple.
Close Position: liquidate the position to realize profit or stop loss.
Margin is the collateral required to maintain the contract, which is divided into initial margin and maintenance margin.
Leverage amplifies profits / risks, commonly 10-100 times.
Liquidation: The margin is insufficient to maintain the position, and the position is forced to be liquidated. Borrowing money to speculate on coins and losing all the principal. For example, if you open a long position with 10 times leverage, the currency price falls by 10%, the margin returns to zero, and the position is liquidated.
Take Profit/Stop Loss (TP/SL) preset automatic liquidation points to control risk.
Futures Trading has a fixed delivery time, and settlement is required upon expiration.
Perpetual contracts have no fixed term and balance long and short positions through funding rates. These contracts do not have an expiration date and can be held indefinitely. The "funding rate" allows both long and short parties to pay interest to each other, preventing price deviations from the spot market.
The funding rate is the interest paid between long and short position holders; when it is negative, the longs subsidize the shorts. When the rate is positive, the longs pay money to the shorts; when it is negative, the shorts subsidize the longs.
A wick formed by short-term violent fluctuations, often used to sweep stop losses. A sudden spike on the candlestick chart.
Liquidation Sweep leads to massive liquidations triggering a chain reaction, causing prices to plummet.
Scalping utilizes small fluctuations for frequent trading to earn the price difference.
Bottom Fishing refers to buying at low prices in anticipation of a rebound.
Top Escape refers to selling at a high price to avoid losses from a pullback.
Hedging with contracts to offset spot risk and lock in profits. For example, holding BTC spot while opening a short futures contract; when the price of the coin drops, the profit from the short position offsets the loss.
The Long/Short Ratio reflects market sentiment, and extreme values may indicate a reversal.
Open Interest refers to the total amount of outstanding contracts, and an increase indicates a rise in market activity.
Volume refers to the total amount of transactions within a unit of time, analyzing trends through the combination of volume and price.
The K-line (Candlestick) is a bar chart that records the opening / closing / highest / lowest prices.
MACD trend indicator. When the white line (fast line) crosses above the yellow line (slow line), it's called a "golden cross", indicating a bullish trend; when it crosses below, it's called a "death cross", indicating a bearish trend.
RSI overbought and oversold indicator, overbought above 70, oversold below 30.
Bollinger Bands reflect the price volatility range, and a breakout above the upper band may lead to a pullback.
Support is the area of intense trading when the price drops, indicating strong buying interest.
Resistance refers to the area of concentrated trading when prices rise, where selling pressure is heavy.
A trendline connects the highs or lows with a diagonal line to determine the direction of the trend.
Double Top reversal pattern, two attempts to hit the same high fail, possibly leading to a decline.
The Head and Shoulders reversal pattern shows an increase after three bottom tests.
The triangle consolidation pattern, after a breakout, continues the original trend.
Whales are large holders who possess a significant amount of tokens and may manipulate the market.
Wash Trading creates false trading data to clean up retail investors' positions.