I am going to reveal to you the piece that is missing for you to understand the Spot and Futures market, and I will teach you a secret formula that few know with which you can leverage (even at 125x) with a risk management structure that protects your capital.

Should I trade in spot or in futures?

To clarify this question, when you buy in the Spot market, you are buying the asset as such, in this case the #Criptomonedas , but when you buy in futures, you are not buying the #Criptomonedas , but a contract based on the underlying asset.

In futures of, for example: BTC, you do not buy BTC, you buy a contract whose value derives from the price of #BTC This allows you to operate with leverage and earn even if the price of $BTC BTC is falling.

But then, where do I operate, in FUTURES or in SPOT?

To clarify this question, when you buy in the Spot market, you are buying the asset as such, in this case the #Cryptocurrencies, but when you buy in futures, you are not buying the #Cryptocurrencies, but a contract based on the underlying asset.

In futures of, for example: BTC, you do not buy BTC, you buy a contract whose value derives from the price of #BTC. This allows you to operate with leverage and earn even if the price of BTC is falling.

But then, where do I operate, in FUTURES or in SPOT?

That depends on your goals, because you can lose money in both futures and spot if you do it wrong, but don't worry, the principle is very basic.

If what you want is to buy the #cryptocurrency and hold it for a long time, you will lose money in FUTURES and your correct place is SPOT.

But instead, if your intention is to do trading and buy and sell constantly and follow a strategy according to market movements, you are losing money in SPOT, since with good risk management and some mathematical formulas, as I will teach you below, you can leverage and make your money more productive. I will explain it to you next.

The secret formula

Let's assume I have 10,000 USDT, but in each trade, I only want to risk 1%. This means that 10,000 * 0.01 = 100 $USDT which is what I am willing to lose for each operation I make in the #MercadoDeFuturos

Let's assume that at that moment the #cryptocurrency $BNB B in the market #BNBUSDT is at $500 and, after my technical analysis, my TP = $550 and my SL = $475.

Here enters the secret math to always lose $100 regardless of the leverage.

• Measure the distance of the TP: ((550 - 500) / 500) * 100 = 10%.This means that the distance in percentage from the entry price to the TP is 10%.
  

  

• Measure the distance of the SL: ((500 - 475) / 500) * 100 = 5%.This means that the distance that exists between the entry price and my SL is 5%.
  

  

• Calculate my risk-reward: 10/5 = 2. This means I am risking 1 to gain 2, which guarantees that this operation in the long term is mathematically profitable.

• Calculate the position size: (10,000 * 0.01) / 0.05 = 2,000 USDT.
  

  

• Calculate the leverage: 1 / (1 - 475 / 500) = 20x
  2,000 / 20 = 100
  
  This is exactly the capital that I am willing to lose if the price reaches my SL; in code, this is much more complex, I will show you the photos at the end.
  
  But what I want you to understand is that you are putting 100, which leaves you free 9,900 for other opportunities, and that in your position this happened:
  
  Initial capital: 100
  
  Profit: 200 (10% of 2,000 = 200 USDT)
  
  Final capital = 100 + 200 = 300
  
  Percentage of profit on capital = (200/100) * 100 = 200%
  
  
  For this reason, if you are a trader and operate in spot, you are losing an abysmal amount of money. Next, I will share how I apply the last phase in the trading bot that I have. Don't forget to follow me, share, and leave me your like.