How to Trade on Shield Perpetual Options
Shield Perpetual Options Contract works on a funding-fee mechanism. For instance, if you open a 1-ETH long position at 400USDT/ETH and prepay 10 USDT as funding fee.
If there’s an unfavourable price movement, say 380 USDT/ETH, you do not suffer from any loss, as all you have to do is ensure adequate funds are available in the prepaid funding fee to keep the position open.
If there’s a favourable price movement, say 430 USDT/ETH, an unrealised profit of 30USDT will be transferred to your funding account. You may choose to exercise the contract and withdraw your profits now or keep your position open for longer, as per your discretion.
If your funding fee balance falls short of the fees required to keep the position open, the liquidation process will be initiated, shutting your position down.
Here’s how you can trade with Shield Perpetual Options.
Step 1: Head over to the Shield website, and click on Start Trading
Step 2: Connect your MetaMask wallet, then you will be asked to switch to the Binance Smart Chain network.
Step 3: Input your funding amount then click DEPOSIT, and sign the transaction on your MetaMask.
Step 4: Select your desired trading pair, specify the order type to go either long or short and amount, click OPEN
Step 5: Open your long position, review the funding fee locked, and confirm the order.
Step 6: The Funding Fee calculator will provide you with clear information on the amount of funding required for each phase.
Step 7: After you have confirmed your order and checked the Funding Fee calculator, the transaction is completed. And you could scroll down to check the order status and exercise at any time.
Last modified 6d ago
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