Imagine when rookies discover they can make money even when the currency is falling.
By default, when people enter this universe, they go to the Spot market. Where the rule is simple: buy as cheap as possible to sell as expensive as possible.
However, when they are more advanced, they move to the professional market: the Futures Markets. Here in Futures, you have a LONG position, which has the same logic as Spot, you buy and sell when it goes up. And we also have the SHORT position, where you trade sold, meaning you enter the position and if the currency continues to drop in price, you make money!
And do you know what’s even better? Here you trade with leverage! In other words, if you only have $10, you can trade positions of U$ 10K!
In other words, you can achieve a much greater profit in a short amount of time, even with a small bankroll.
BUT NOT EVERYTHING IS ROSES! And now I shatter your dreams: Here is the liquidation point.
When you trade with leverage, the broker is basically lending you money. So, when your margin is about to run out, a penalty is applied and the broker liquidates your position.
That’s why futures are something you should only trade after fully mastering the Spot market and knowing how to do chart analysis, etc.
In futures we have:
Isolated margin: Only the amount you entered into the position is liquidated. However, the settlement point is closer.
Cross margin: ALL BALANCE IN THE FUTURES ACCOUNT IS LIQUIDATED! However, your settlement point is further away.
With 1 USDT you can now trade futures to test.
I have instructions here that show practically how each one works.
One thing is for sure: You only enter futures with a Stop already activated.
