Understanding delivery contract trading is essential for any participant in the digital asset derivatives market. This comprehensive guide breaks down the core mechanics, trading types, order methods, leverage options, position management, and risk controls to help traders navigate the ecosystem with confidence and precision.
Trading Hours and Market Availability
Delivery contract trading operates on a 24/7 basis, ensuring global accessibility across time zones. However, trading is temporarily paused daily at 16:00 (GMT+8) during the settlement or delivery process. The duration of this interruption depends on system processing time and varies by asset type.
Importantly, trading halts and resumptions are processed per asset. For example, if Bitcoin (BTC) is still undergoing settlement, other digital assets like Ethereum (ETH) may resume trading immediately once their settlement is complete. This allows for faster market re-entry across non-BTC instruments.
In the final 10 minutes before contract delivery, users are restricted to closing positions only—no new positions can be opened. This safeguard helps stabilize pricing and ensures orderly settlement.
👉 Discover how to maximize your trading efficiency during active market windows.
Core Trading Types Explained
All delivery contract trades fall into two main categories: opening and closing positions. Each has a directional component—buy (long) or sell (short).
Opening a Position
- Buy to Open Long (Go Long): Used when you expect the index price to rise. By purchasing a contract, you establish a long position. Successful execution increases your long exposure.
- Sell to Open Short (Go Short): Applied when anticipating a price decline. Selling a contract initiates a short position, increasing your bearish exposure.
Closing a Position
- Sell to Close Long (Exit Long): When you no longer believe the market will rise, you sell your existing long contracts to exit the position. This reduces or eliminates your long holdings.
- Buy to Close Short (Cover Short): If you anticipate a rebound or wish to limit losses, buying back previously sold contracts closes your short position and reduces downward exposure.
These actions allow traders to capitalize on both rising and falling markets while maintaining control over risk through timely exits.
Order Types and Execution Strategies
Choosing the right order type is crucial for achieving desired entry and exit points. Here’s a breakdown of available options:
Limit Order
A limit order lets you specify both price and quantity. It ensures you never pay more (when buying) or receive less (when selling) than your set price. This order type supports three execution modes:
- Post Only: Ensures your order doesn’t cross the spread—only added to the order book as a maker.
- Fill or Kill (FOK): Must be fully executed immediately; otherwise, it's canceled.
- Immediate or Cancel (IOC): Executes what it can instantly, cancels the remainder.
By default, limit orders remain active until manually canceled.
Conditional (Trigger) Orders
With conditional orders, you set a trigger price, order price, and quantity. When the market hits your trigger level, the system places a limit order automatically. This is ideal for automated entries or stop-loss setups without constant monitoring.
Counterparty Price Order
In a counterparty price order, you input only the quantity. The system instantly reads the best opposing price—sell price (ask) for buys, buy price (bid) for sells—and submits a limit order at that level for rapid execution.
Best N Levels (Best N)
This method enhances speed by allowing execution across the top N price levels:
- Choose Best 5, Best 10, or Best 20 levels.
- No need to enter a price manually.
- Orders execute quickly against multiple opposing orders, reducing slippage risk during volatile periods.
All order types—including limit, conditional, open, and close—can use Best N for faster fills.
Lightning Close (Flash Close)
Designed for urgent exits, Lightning Close uses the Best 30 levels to rapidly close positions. Any unfilled portion becomes a limit order at the last executed price. This minimizes missed opportunities during sharp price swings and provides predictable exit pricing.
👉 Learn advanced strategies for fast and secure position closing.
Leverage and Contract Multipliers
Delivery contracts support leverage ranging from 1x to 200x, amplifying both potential gains and risks.
For example:
With a 10x multiplier on a BTC weekly contract, just 1 BTC in collateral allows you to control a position worth up to 10 BTC.
Key Leverage Rules:
- All contracts (weekly, bi-weekly, quarterly, next-quarter) under the same asset use the same multiplier.
- You must select leverage before opening a position.
You can change leverage only if:
- There are no open orders (limit or conditional).
- The asset is in an active trading state.
- Your account maintains sufficient collateral and margin ratio (>0).
- Changing leverage affects all contract cycles of that asset simultaneously.
- Changes may fail due to network issues, system errors, or insufficient funds.
Use high leverage wisely—while it magnifies returns, it also accelerates liquidation risk.
Position Management and Averaging
Once an order is filled, a position is created. Identical contracts in the same direction are automatically merged.
For instance:
Open 1 BTC weekly long → Later open 2 more → Your position shows as 3 BTC weekly longs, not separate entries.
Each account supports up to 8 positions:
- Weekly Long & Short
- Bi-weekly Long & Short
- Quarterly Long & Short
- Next-quarter Long & Short
Cost Basis Calculation
Positions are closed using the moving average method:
- No FIFO or LIFO tracking.
- Average entry price determines profit/loss.
Example:
Buy 1 contract at $1,000 → Buy 2 contracts at $1,500 → Contract size: $100
Average price = $100 × (1+2) / [(100/1000) + (200/1500)] = **$1,285.70**
This simplifies accounting and ensures consistent P&L reporting.
Position and Order Limits
To prevent market manipulation and ensure fair trading, platforms enforce limits on:
- Maximum position size per user
- Maximum order size per trade
| Asset | Max Position (Long/Short) | Max Order Size (Open/Close) |
|---|---|---|
| BTC | 300,000 contracts | Open: 45,000 / Close: 90,000 |
| ETH | 2,000,000 contracts | Open: 150,000 / Close: 300,000 |
⚠️ These values are subject to real-time adjustment based on market conditions without prior notice.
If your position or order size poses systemic risk, the platform may:
- Require forced unwinding
- Restrict total positions or orders
- Block new entries
- Initiate automatic liquidation
Frequently Asked Questions (FAQ)
Q1: Can I change leverage during active trades?
Yes—but only if you have no open orders (limit or conditional). All cycle contracts for that asset will update simultaneously.
Q2: What happens if I try to open a position during settlement?
Trading is paused during settlement. You must wait until your specific asset resumes trading.
Q3: How is my profit calculated when closing part of a merged position?
Profits are based on the average entry price of all contracts in that position, regardless of individual buy times.
Q4: Why can’t I use more than 200x leverage?
Regulatory standards and risk management policies cap maximum leverage to protect traders from excessive volatility and liquidation.
Q5: Does Lightning Close guarantee full execution?
Not always. It attempts execution across the best 30 price levels; any remaining volume becomes a limit order.
Q6: Are these rules applicable to all digital assets?
Most follow this framework, but specific limits and multipliers vary by asset. Always check current parameters before trading.
Final Thoughts
Mastering delivery contract trading requires understanding not just price movements but also the underlying mechanics—from order types to leverage rules and position logic. With disciplined risk management and strategic use of tools like conditional orders and Lightning Close, traders can operate efficiently in fast-moving markets.
👉 Start applying these insights with powerful trading tools today.