#TradingPairs101 Futures trading can offer prosperous opportunities due to high profit potential, but it also comes with significant risks. Below is a brief analysis: Prosperous Opportunities High profits through leverage: Futures allow for leverage, such as x10, x50, or even x125, which helps amplify profits from a small capital. If you predict the price trend correctly (up - Long or down - Short), you can make substantial profits. High liquidity: Major exchanges like Binance have high 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 price volatility risk, particularly useful for long-term investors or businesses. Flexibility: You can profit in both bull and bear 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, even face account liquidation (account blown). Significant price volatility: Asset prices in futures (especially cryptocurrencies) can change rapidly, leading to substantial losses in a short time. Knowledge and skill requirements: Futures trading requires a deep understanding of the market, technical analysis, and risk management. Novices are prone to mistakes if they lack experience. Fees and liquidation: If the account does not have sufficient margin, exchanges like Binance may automatically liquidate positions, along with a penalty fee (0.5% of the transaction value).