✅ What are Futures contracts in crypto?
Futures contracts are a type of trading in crypto, the idea is that it is not buying and selling a real currency, no, you are betting on whether the price of the currency will go up or down in the future.
What does it mean?
You open a contract that says:
If the price goes up → you open a buy order (Long)
If the price goes down → you open a sell order (Short)
If your prediction is correct, you make money ✅
If your prediction is wrong, you lose money ❌
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✅ How do Futures contracts work?
1. You determine the currency you want to work on (like BTC, ETH)
2. Choose the size of the trade (how much money you will put in)
3. Determine the leverage
This allows you to trade with an amount larger than your actual money
Example: You have $100, and you chose a leverage of ×10 → it’s like you are trading with $1000
4. Open the trade (Long or Short)
5. Win or lose based on market movement
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✅ The big risks in Futures contracts
If the market goes against you, you could lose all your money
If you use high leverage, the risk increases significantly
If you don't use Stop Loss, you could face total account liquidation
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⚠️ Why do people like it?
Big profits in a short time
You can make money even if the market is going down (through Short)
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