đ What Futures Trading Really Is
A futures contract is a financial agreement to buy or sell an asset at a later date at a price agreed today. But in crypto, most platforms use perpetual futures, meaning:
âą Thereâs no fixed expiry date â you can hold as long as you want. ïżŒ
âą You donât have to own the coin â youâre speculating on price movement (up or down).
âą You can long (bet price rises) or short (bet price falls).
âą You can use leverage (borrowed money) â this can increase profits and losses. ïżŒ
đĄ Important risk note: If price moves against you, you can get liquidated â meaning your position closes automatically to stop the exchange from losing money. Always use risk management.
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đ How a Trade Works (Step-by-Step)
1. Transfer funds (e.g., USDT) into your futures wallet.
2. Choose a pair (like BTC/USDT, ETH/USDT).
3. Decide:
âą Long â you think price will go up.
âą Short â you think price will go down.
4. Choose leverage (e.g., 5x, 10x). Smaller leverage = safer.
5. Set risk management:
âą Take profit
âą Stop loss
6. Open the position.
7. Monitor or close the trade when targets are hit.