๐จ๐ธ Alright legends, let's talk futures. I blew $600 on 100x leverage figuring this out the hard way, so listen up. Spot trading? You buy 1 BTC, you own 1 BTC. Simple. Futures? You're trading a *contract* on BTC's future price โ you never actually own the underlying asset.
The HUGE difference people miss? Leverage and liquidation. In spot, if BTC drops 50%, you still own your coins. In futures, your initial margin, say $100 on 10x leverage, can be wiped out entirely if the market moves just 10% against you. That's liquidation. Beginners don't realize their *entire capital* on a trade is at risk, not just some potential profit. It's 'more loss potential, faster'.
So, if you put $100 into a 20x leveraged long on BTC and it drops 5%, what exactly happens to your $100?
#FuturesTrading...