Do you know where the money from losses in futures contracts goes?

🔍 Where does the money we lose in futures contracts go?

$BTC $ETH $BNB

To understand the game correctly:

The futures market is not like a casino; it is a zero-sum game.

Any loss incurred by one trader 👉 is exactly equal to the profit of another trader.

Your loss does not go to the platform itself; the platform only takes the fees.

The money is transferred between traders who are in the same contract (Long vs Short).

⚖️ In short:

If you made a profit = someone lost in front of you.

If you lost = someone made a profit against you.

That’s why the most important things before entering futures contracts are:

✔️ Risk management

✔️ Use stop-loss

✔️ Don’t risk a large capital

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