📚 DAY 6 - Learn all Crypto terms in 30 days

📚 DAY 5 - Learn all Crypto terms in 30 days

1. Margin

👉This is the initial amount you need to deposit into the exchange to open a Futures position.

The higher the margin, the greater the safety (less likely to be liquidated); a low margin can lead to higher profits but also increases the risk of account liquidation.

👉Futures are typically divided into:

- Isolated Margin: separate margin for each order.
- Cross Margin: using the entire Futures balance as common collateral.

2. Funding Rate

👉The amount of money paid between Long and Short traders, on an 8-hour cycle (common).

- If the Funding Rate is positive → Longs pay Shorts.
- If the Funding Rate is negative → Shorts pay Longs.

👉The Funding Rate helps keep the Futures price from deviating too far from the spot market price.

3. Open Interest (OI)

👉This is the total number of open Futures contracts (not yet closed) in the market.

- OI increases → the market is active, with many new orders coming in.
- OI decreases → the market is closing positions, reducing liquidity.

👉Analyzing OI helps traders understand the trend of money flow and market sentiment.

4. Stop Loss

👉This is the price level you set in advance to automatically close a position when the market goes against your expected trend.

- Stop Loss helps limit losses, protecting your account from significant dumps.
👉A professional Futures trading strategy always includes setting a Stop Loss right when opening a position.

#FutureTarding $BTC