Detailed Explanation of Gate Futures Trading Function: Accurately Grasp Market Turning Points

The market is waiting for direction at a delicate moment. As of December 22, Bitcoin is at $89,133.5, with a slight pump of 0.53% in 24 hours, and the resistance level above is $89,630; Ethereum is at $3,042.07, rising 1.32%, and is testing the key resistance at $3,060.

At the same time, panic sentiment is spreading, yet some altcoins are surging against the trend: SOP rose by 51% in a single day, LRN increased by 33%, and MELD went up by 24%, presenting a complex situation of contrasting extremes in the market.

Institutional investors are continuously entering the market. Industry analysts point out that the current stage is not the peak of a bull market, but rather an “institutional accumulation period.” This structural change in the market means that for traders who can flexibly use two-way trading tools, there are opportunities hidden within the volatility.

01 Market Barometer

The current cryptocurrency market presents complex and differentiated characteristics. The overall trend is converging, while local hotspots are active, showing a divergence between market sentiment and capital behavior.

Bitcoin and Ethereum have performed flat over the past week, oscillating in a range at high levels. The price of Bitcoin has hovered between $87,000 and $89,000, with several attempts to break through the $89,000 resistance level failing.

Market volatility has decreased, with traders waiting for new catalysts to break the deadlock. Meanwhile, the Fear and Greed Index remains at 25, clearly pointing to the “fear” zone. This index quantifies market sentiment by analyzing data such as market volatility, trading volume, social media sentiment, and search trends.

In stark contrast to the panic sentiment of retail investors is the continuous positioning by institutions. Industry data shows that institutions currently hold 24% of the total market value of cryptocurrencies, while the proportion held by retail investors has dropped to 66%.

An industry veteran commented: “The current stage is not a 'bull market peak', but rather an 'institutional accumulation period'.” This accumulation behavior provides solid medium- to long-term support for the market and also explains why, amid market panic, prices have not experienced a catastrophic drop.

02 Gate Contract Core Advantages

In the face of the current market characterized by both volatility and opportunities, a powerful and secure trading tool is essential. Gate.io's contract trading feature offers solutions for traders at different levels with its comprehensive product design and user-friendly experience.

A rich product line is a prominent feature of Gate's contract trading. The platform offers various types of trading, including USDT perpetual contracts, USDC perpetual contracts, and coin-margined perpetual contracts. Recently, Gate also launched perpetual contract trading for ZKP, GUA, and IR, further enriching the variety of trading options.

Professional tools and security mechanisms form a solid framework for Gate contract trading. The platform offers a flexible leverage adjustment of up to 100 times, but more notably is its comprehensive risk control system. The real-time display of maintenance margin, risk level, and liquidation price makes risks fully transparent.

Gate also offers automated tools such as automatic take profit and stop loss, position reduction reminders, and margin monitoring to help traders, especially beginners, effectively manage risk.

The platform's strength provides underlying support for these functions. As a leading global cryptocurrency exchange, Gate has nearly 50 million registered users, ranking second in the world for spot trading volume and among the top three for derivatives trading volume. The large user base brings deep market liquidity and a stable trading environment.

03 From Beginner to Practical Application

After understanding the market background and the advantages of the tools, how to start a contract trade on Gate? Here is a clear step-by-step guide, especially suitable for beginners.

Preparing funds and choosing varieties is the first step. Transfer funds in Gate's “Contract Account” and it is recommended for beginners to start with a small amount. Next, choose trading varieties, such as mainstream pairs BTCUSDT or ETHUSDT, which have relatively stable fluctuations and are more suitable for beginners. Recently launched new contracts like ZKP, GUA, and IR also provide options for traders looking for new opportunities.

The key parameter settings are the core of risk control. When setting the leverage multiple, beginners must start with low leverage (such as 1-3 times). High leverage will simultaneously amplify both profits and losses, significantly increasing the probability of liquidation.

Choose the direction to open a position: select “Long” for bullish and “Short” for bearish. This is the biggest advantage of contract trading compared to spot trading – you can profit whether the market rises or falls.

Order execution and risk management determine the final success or failure. For placing orders, beginners are recommended to use limit orders to control slippage risk. The most crucial step is to set take profit and stop loss. This is the aspect that beginners are most likely to overlook but is the most fatal.

It is recommended to set the stop-loss within an acceptable loss range, such as 2%-5% of the principal. During the trading process, you can choose to partially close positions to lock in profits or adjust your position according to market changes to manage risk.

04 Risk Identification and Discipline

Contract trading is a financial instrument with potentially high returns, but it comes with proportionately amplified risks. Fully understanding and managing these risks is a prerequisite for long-term survival in the market.

Leverage and forced liquidation risk are the most significant features of contract trading. Leverage is a double-edged sword; for example, using 10x leverage means that with 100 USDT you can operate a position worth 1,000 USDT, and both profits and losses will be amplified simultaneously. When the price reaches the liquidation price, the position will be automatically liquidated by the system.

What beginners must be wary of is that shorting is not “always safe.” Due to the volatile nature of the crypto market, a rapid rebound can lead to short positions being liquidated.

A common fatal mistake for beginners is emotional trading and “revenge” buying after losses. In a market environment where the fear index is only 25, emotional control becomes particularly important. The hallmark of professional traders is to execute a pre-set trading plan with discipline, rather than being swayed by market fluctuations.

The choice of account mode is also a key risk management decision. Gate offers both full margin and isolated margin modes. For beginners, it is strongly recommended to use the isolated margin mode, which isolates the risk of each position, ensuring that losses from a single trade do not affect the funds of other positions, thereby achieving controllable risk.

Future Outlook

When the Fear and Greed Index hovers at a low of 25, Gate.io's annual summary reveals a trend: despite superficial fluctuations, user engagement depth and platform trading activities continue to grow in 2025.

At the same time, its contract trading interface has quietly launched perpetual contracts for new underlying assets such as ZKP, GUA, and IR, providing new tools for funds seeking direction.