Futures Trading: High Risk, High Reward
š” What Is Futures Trading?
Futures trading allows you to speculate on the future price of a cryptocurrency using contracts. These trades often involve leverage , meaning you can control larger positions with less capital. For example, with 10x leverage, 100 canact like1,000 in the market.
ā ļø Why Itās Risky for Beginners:
Leverage Risks: While leverage can amplify profits, it can also lead to significant losses if the market moves against you.
Complex Mechanics: Futures trading involves concepts like margin calls, liquidation, and funding rates, which can be overwhelming for beginners.
Emotional Pressure: The fast-paced nature of futures trading can lead to impulsive decisions.
š When to Choose Futures Trading:
If youāre experienced, understand market trends, and are comfortable with higher risks, futures trading can offer exciting opportunities. However, as a beginner, itās best to avoid futures trading until youāve mastered the basics.
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