Why Understanding Contract Details Matters
Many trading losses occur before you place a single order. Traders often assume all futures contracts function the same way—but equity-linked futures can vary widely in settlement rules, margin requirements, and pricing mechanics. Verifying the contract specifications upfront is your first step in managing risk effectively.
The Essential Contract Checklist
Before entering any trade, confirm the following details:
- Underlying Reference: Know exactly what the contract tracks—whether it’s a stock, index, or basket of assets.
- Contract Size: Understand how much market exposure one contract represents.
- Price Increments (Tick Size): Recognize the smallest price movement and how it impacts your orders and profit calculations.
- Minimum Order Size: Determine whether you can trade partial contracts or must commit to full units.
- Margin Requirements: Review initial and maintenance margins, and note if margins scale with position size.
- Liquidation Procedures: Understand how the platform handles margin shortfalls and what notifications appear.
Estimating Costs Before You Trade
Trading costs can quickly reduce profits, especially for short-term strategies. Consider these before committing:
- Entry and Exit Fees: Be aware of maker/taker differences.
- Ongoing Funding or Financing Charges: Some contracts accrue periodic fees—factor them in.
- Spreads and Slippage: Estimate execution costs based on your typical order size.
Turning Contract Specs into a Smart Trade Plan
Once you know your contract size and margin rules, you can plan positions strategically:
- Set a stop-loss based on market structure.
- Calculate dollar risk per contract.
- Choose a position size that keeps losses within a tolerable limit.
This disciplined approach is the opposite of “max leverage and hope,” which often leads to preventable mistakes.
Where to Begin Your Research
Start with the official Bitget stock futures page, then verify the exact contract specifications on the platform. Doing this ensures your trades are based on facts, not assumptions.
Conclusion
Successful futures trading depends on preparation and knowledge. By carefully checking contract details and estimating costs beforehand, you can reduce unnecessary risks and build a professional trading strategy.
