$USDC Leverage: Futures contracts often require low margins (e.g., 5-10% of the contract value), amplifying both profits and losses.
• Time Frame: Can be suitable for day trading (short-term movements) or swing trading (holding positions for several days/weeks).
• Risk: High due to leverage usage and volatility. Risk management (stop-loss orders, position sizing) is crucial.
• Analysis: Traders often use technical analysis (charts, indicators like RSI or moving averages) and monitor market news (e.g., economic data, supply-demand for commodities).
• Common Strategies:
• Hedging: Protecting against price fluctuations (e.g., farmers locking in crop prices).
• Speculation: Profiting from price changes (e.g., betting on oil price spikes).
• Scalping: Quick trades to capture small price movements.