> For the complete documentation index, see [llms.txt](https://doc.ave.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.ave.ai/tutorial/complete-guide-to-trading-on-chain-perpetuals-on-ave.ai.md).

# Complete Guide to Trading On-Chain Perpetuals on Ave.ai

**I. Connect Your Wallet and Log In to the Contract Account**

After entering Ave.ai on desktop, first select the **\[Contracts]** module from the top navigation bar. Then click **\[Connect Wallet]** in the upper-right corner. Ave.ai will connect directly to a supported browser wallet. The platform supports major wallet extensions such as **OKX Wallet, MetaMask**, and more.

Using **OKX Wallet** as an example:

* Click **Connect**
* The wallet will pop up a signature request
* Click **Confirm Signature**
* Return to the page and click **\[Log In to Contract Account]**

When **\[My Contract Account]** appears on the right side of the interface, it means:

✅ Wallet connected successfully

✅ Contract account activated

The essence of this step is to establish the mapping between your **on-chain wallet funds** and the **trading system**.

***

**II. Deposit and Withdraw Funds (Move Capital into the Contract Account)**Click **\[Deposit]**, then select the asset to deposit (typically **USDT**). Next, choose the network. Ave.ai currently recommends **BNB Chain** first, because it offers **lower gas fees and faster transaction speed**.The interface will display:

* Maximum depositable amount
* Click **\[Enable]**
* Your wallet will pop up an **Approve** transaction
* Confirm it

The purpose of this authorization is to allow the contract to access your **USDT balance**. After approval is completed, confirm the deposit transaction again, and the funds will enter your contract account.

***

**III. Core Pre-Trade Analysis Workflow**

Professional trading is not about clicking buy. It starts with **market analysis first**.

**1️⃣ Select the Trading Pair**Choose the asset in the upper-left corner, for example **BTCUSD Perpetual**.

For beginners, it is generally better to start with:

* Major coins
* High liquidity
* Strong depth
* Lower wick manipulation risk

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**2️⃣ Analyze Chart Structure**

Switch timeframes based on trading style:

* Short-term trading → **5m / 15m**
* Swing trading → **1h / 4h**

Focus on three core elements:

**Trend direction**

* Higher highs → uptrend
* Lower lows → downtrend

**Support and resistance**

* Levels where price repeatedly bounces → support
* Levels where price repeatedly gets rejected → resistance

**Volume** 

A breakout is only considered valid when it comes with **increased volume**.

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**3️⃣ Observe Order Book Liquidity**

Look at the depth panel on the right:

* Thick buy walls → short-term support
* Thick sell walls → short-term resistance

This helps you judge whether the market is vulnerable to **sharp pumps or dumps**.

***

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**IV. Set Trading Parameters (The Step That Determines Survival)Position Mode Selection**

For beginners, **Isolated Margin** is generally recommended because:

* Maximum loss per trade is capped
* One bad trade will not wipe out the entire account

**Leverage Suggestion for Beginners**

A practical starting range is **3x–5x**.Ave.ai trading principle:

* **Leverage is not for gambling**
* **Leverage is a tool for capital efficiency**

***

**V. Set Take Profit and Stop Loss (Must Be Done Before Entering)**

You can set **take profit** and **stop loss** directly in the order panel.

Options include:

* Manually entering price levels
* Adjusting by percentage

The system will automatically show:

* Estimated profit
* Estimated loss

A core professional rule: **Set the stop loss first, then open the trade.**

***

**VI. Open a Position**

1. **Limit Order Entry (Recommended for Beginners)**

**Advantages:**

* Better cost control
* Lower slippage

**Process:** Enter price → Enter quantity → Click **Buy / Long** → Confirm

The order will appear under **\[Open Orders]**.

2. **Market Order Entry (Used for Breakouts)**

Best for:

* Strong breakout conditions
* Fast stop-loss response
* Immediate execution when speed matters most

***

**VII. Position Management (What Determines Long-Term Profitability)**After entering a trade, go to **\[Open Positions]** and focus on:

* **Liquidation Price** 

This tells you how far the market can move against you before liquidation happens.

* **Margin Ratio**

The higher it is, the safer the position.

* **Unrealized PnL**

Used to decide whether to:

* Move your stop loss
* Take profits in stages

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**VIII. Take Profit / Stop Loss Strategy Management**

Click **\[TP/SL]** on the position to:

* Add multiple take-profit levels
* Add multiple stop-loss levels

Professional traders often scale out like this: 50%, 30%, 20%

This helps **lock in profits while still letting part of the position ride the trend**.

***

**IX. How to Close a Position**

**Market Close**

Exit immediately at market price. Best for:

* Stop loss
* Emergency profit-taking

**Limit Close**

Used to place target-based take-profit orders.