Futures contracts are a type of trading where you predict the price direction, without actually owning the currency.
This means instead of buying Bitcoin and waiting for it to rise, you can open a Long position and profit when the price goes up,
Or you open a Short position and profit when the price drops! 💰
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📊 A simple practical example:
🔹 Let's assume Bitcoin price = $60,000
📈 Do you feel that the price will rise?
✅ You open a Long (Buy) position at 60,000
💥 If BTC rises to 61,000 → you gained a difference of $1,000 (depending on the trade size)
📉 Feeling that the price will drop?
✅ You open a Short (Sell) position at 60,000
💥 If it drops to 58,000 → you gained a difference of $2,000
But if the market goes against you… you lose the same value (or more if you used leverage)!
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⚙️ Leverage – Blessing or Curse?
Leverage allows you to control a position larger than your capital.
For example:
With only $100, and with 10x leverage → you can open a position worth $1,000
📈 If the price moves 1% in your favor = Gain 10%
📉 If the price moves 1% against you = Loss 10%
🔴 Warning: With 20x or 50x leverage, a very small movement can zero your account! Use it with extreme caution!
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💡 Practical tips for beginners:
1. Start without leverage or with a small amount (2x–3x maximum)
2. Always use a Stop Loss to protect your capital
3. Don't enter the market unless you have a clear analysis or plan
4. Start experimenting on a demo trading account (Testnet)
5. Stay away from trading during major news or high volume if you are a beginner
6. Trade in the direction of the trend only (do not go against the market)
7. Write down every trade you make in a trading journal or Excel file, and review them later
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📌 Terms you will hear a lot:
• Long = Buy
• Short = Sell
• Leverage = Financial leverage
• Margin = The amount you enter
• Liquidation = Account zeroing due to significant loss
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🪙 Currency for monitoring and practice:
Try to practice with a currency that has high volume and good daily movement like:
$OP or $SEI because they move well and teach you the trends.
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📍 In the next post:
Step by step how to open your first Futures position on Binance –
and we will explain the difference between Cross and Isolated, and how to choose the position size safely. 💡
