The cooling-off period for Bitcoin contracts

The "cooling-off period" for Bitcoin contracts refers to a specific time period set by trading platforms in Bitcoin contract trading. During this period, traders' partial trading operations are restricted, typically unable to open new positions, but can continue to hold existing positions or close positions. Its purpose is to maintain market stability, protect investors' interests, and prevent risks caused by excessive leveraged trading and speculative behaviors. The relevant introduction is as follows:

Setting Purpose

• The Bitcoin market is highly volatile, making it easy for investors to trade emotionally. The cooling-off period allows investors to temporarily suspend contract trading, prevent trading addiction, have time to reflect on trading strategies, and reduce the risk of liquidation.

• It can also reduce abnormal market fluctuations and avoid adverse impacts on the market caused by malicious manipulation or frequent trading.

Trigger Conditions

• Usually, when there is a sharp market fluctuation or extreme market conditions, the trading platform will set a cooling-off period to calm market sentiment and protect the interests of traders.

• Additionally, when trades meet set trigger conditions, such as take-profit or stop-loss orders, or when trading systems/platforms encounter failures or anomalies, a cooling-off period may also be activated.

Time Setting

• The duration of the cooling-off period is stipulated by each trading platform without a unified standard. It is generally preset as one day, but can also be selected as one week or one month, calculated based on the investor's local time.

• For example, if one day is chosen, the cooling-off period starts when the function is enabled and ends at 23:59:59 local time on the same day.

Operational Restrictions

• During the cooling-off period, traders cannot use specific trading functions on the platform, such as U.S. dollar-denominated and coin-denominated contracts, contract grids, etc.

• The cooling-off period is usually irrevocable. Once activated, all relevant trading functions and confirmation buttons will be disabled until the cooling-off period ends.