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🚫 Part 16: The Futures Trap Topic: Why Beginners Should Avoid Futures Trading. If spot trading is like driving a car, Futures Trading is like flying a jet engine without a license. It is the number one way new traders lose 100% of their money in seconds. 1. The Danger of Leverage Leverage allows you to trade with money you don’t have. The Math: If you use 10x leverage, a small 10% drop in price equals a 100% loss for you. In the volatile world of crypto, a 10% move can happen in minutes. 2. Liquidation: The Point of No Return In spot trading, if your coin drops 50%, you still own the coin. You can wait for years for it to recover. In Futures, if the price hits your Liquidation Price, the exchange takes your money and closes your trade. Your money is gone forever. You cannot "wait" for it to come back. 3. The House Always Wins Exchanges charge "Funding Fees" every 8 hours to keep your position open. Over time, these fees eat your balance. Additionally, "Whales" often trigger sudden price spikes (called Scam Wicks) specifically to hit the liquidation levels of retail traders and take their money.
Powell may be asked about his view on the weakening dollar. The greenback bounced back earlier today after Treasury Secretary Scott Bessent stepped in to soothe markets, following a drop yesterday when President Trump said he’s comfortable with the recent dollar decline.
The Fed typically avoids commenting on currency policy, which falls under the Treasury’s purview. In any case, the policy implication should be limited. The dollar’s roughly 2% year-to-date decline is relatively contained, so the pass-through from currency weakness to inflation is rather muted.
It may be just a coincidence, but the dollar’s performance since Trump’s election closely mirrors its trajectory during his first term. If history repeats, some near-term relief may be in store.