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📘 First: What are futures contracts?#FutureTarding
Futures contracts are agreements between two parties to buy or sell a specific asset (such as cryptocurrencies, gold, oil, or indices) at a predetermined price on a future date.
In cryptocurrency markets, the most popular futures contracts are traded on platforms like #Binance , Bybit, OKX, and others.
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⚙️ Second: How Futures Contracts Work
✅ Key Features:
Leverage: You can open a larger position than your balance, for example, with $100 you can open a position of $1000 using a ×10 leverage.
Buying and Selling: You can profit from rising (Long) or falling (Short) prices.
Expiration Date: In cryptocurrencies, there are two types:
Perpetual Contracts: No expiration date.
Monthly/Quarterly Contracts: They have a specific expiration date.
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🧭 Third: Steps to Trade Futures Contracts
1. Choose the platform
Example: Binance Futures, [Bybit], [OKX].
2. Fund the account
You must transfer part of your funds to the futures account from the regular trading account.
3. Choose the asset to trade
For example: BTC/USDT – ETH/USDT – XRP/USDT … etc.
4. Define the type of trade
Long: if you expect the price to rise.
Short: if you expect the price to decrease.
5. Determine the leverage
The higher the leverage, the greater the potential profits/losses. Beginners are advised not to exceed ×5 or ×10.
6. Set the order
Market Order: enters the trade directly at market price.
Limit Order: manually set the entry price.
Stop Loss: to set the maximum loss.
Take Profit: to set your target profit.
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⚠️ Fourth: Risks and Important Notes
⚠️ Risk Explanation
Liquidation If the price moves too much against you, the position is liquidated and the entire margin is lost.
High leverage = high risk It can quickly multiply losses.
Funding Fees are deducted or paid every 8 hours in perpetual contracts.
Market Volatility Cryptocurrencies are highly volatile. Do not trade without a plan.
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📊 Practical Example:
Assuming BTC is at $60,000, and you expect it to rise to $63,000.
1. Enter a Long position with 100 USDT, leverage ×10.
2. This is equivalent to buying 1000 USDT of BTC.
3. If the price actually rises to $63,000:
Profit = (3,000 ÷ 60,000) × 1000 = 50 USDT.
4. If the price drops to $58,000:
Loss = (2,000 ÷ 60,000) × 1000 = 33.3 USDT.
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🧠 Tips for Beginners:
Start with a demo account or small capital.
Do not use high leverage at the beginning.
Commitment
Be with a clear trading plan and strategy.
Always use a stop loss.
Do not risk more than 1-3% of your capital in a single trade.