#Liquidity101 Futures trading can provide prosperous opportunities due to its high profitability, but it also comes with significant risks. Here is a brief analysis: Prosperous Opportunities High profits due to leverage: Futures allow for leverage (such as x10, x50, or 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 a large volume of futures trading, 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 volatility, which is especially useful for long-term investors or businesses. Flexibility: You can profit in both bullish (up) and bearish (down) 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 initial capital, or even face 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. Newcomers can easily make mistakes if lacking experience. Fees and liquidation: If the account does not have enough margin, exchanges like Binance can automatically liquidate positions, along with a penalty fee (0.5% of the transaction value). Very great.