#OrderTypes101 Futures trading can provide lucrative opportunities due to high profitability, but it also comes with significant risks. Below is a brief analysis: Prosperity opportunities High profits thanks to leverage: Futures allow the use of 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 make substantial profits. High liquidity: Major exchanges like Binance have large futures trading volumes, making it easy to buy/sell and exit positions without significant slippage. Price risk protection: Futures allow investors to lock in asset prices, minimizing the risk of price fluctuations, especially useful for long-term investors or businesses. Flexibility: You can profit in both bull (rising) and bear (falling) markets through Long or Short orders. Risks Leverage risk: High leverage increases the risk of losses. If the market goes against your prediction, you could lose your entire capital, or even face account liquidation (account wipeout). Strong 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 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 enough margin, exchanges like Binance may automatically liquidate positions, along with penalty fees (0.5% of the transaction value).