#TradingTypes101 Futures trading can offer prosperous opportunities due to high profitability, but it also comes with significant risks. Below is a brief analysis:Prosperous OpportunitiesHigh returns through leverage: Futures allow for leverage (for example, x10, x50, even x125), which helps amplify profits from a small capital. If you correctly predict the price trend (up - Long or down - Short), you can earn substantial profits.High liquidity: Major exchanges like Binance have high trading volumes in futures, making it easy to buy/sell and exit positions without significant slippage.Price risk protection: Futures allow investors to fix the price of an asset, minimizing the risk of price fluctuations, especially useful for long-term investors or businesses.Flexibility: You can profit in both bull (up) and bear (down) markets through Long or Short orders.RisksLeverage risk: High leverage increases the risk of losses. If the market moves against your prediction, you could lose your entire principal, even facing account liquidation (account wipeout).High price volatility: Asset prices in futures (especially cryptocurrencies) can change rapidly, leading to significant losses in a short time.Knowledge and skill requirements: Futures trading requires a deep understanding of the market, technical analysis, and risk management. Beginners can easily make mistakes if lacking experience.Fees and liquidation: If the account does not have sufficient margin, exchanges like Binance can automatically liquidate positions, along with a penalty fee (0.5% of the transaction value).