Family What does “closing a trade” in futures mean?
Closing a trade means exiting the trade to:
Secure profits
Avoid further losses
Protect your capital
In futures, you can close a long position (buy) or a short position (sell).
WHEN to close a trade (the most important rules)
1️⃣ When you reach your Take Profit (TP)
👉 If the price hits your profit target, close without hesitation.
Example:
You buy BTC at 40,000
Your TP is 41,000
The price reaches there → you close
👀 Don't be greedy: profit taken = profit secured.
2️⃣ When your Stop Loss (SL) is reached 🛑
👾 If the market goes against you, close to limit the loss.
Example:
You enter at 40,000
SL at 39,500
The price drops → you close
👾 This is discipline, not failure.
3️⃣ When the market changes direction 🔄
Close if you notice:
It breaks your support or resistance
A strong opposing candle appears
Volume against your position
👾 The market dictates, not your emotions.
4️⃣ When the funding rate affects you ⏱️
If:
The funding is high
You plan to hold the position for a long time
👾 It’s advisable to close or reduce.
5️⃣ When the risk is greater than the profit
If you see that:
It’s no longer worth continuing
The potential profit is small 👉 You close and protect capital.
🚨 WHEN to close YES or YES
⚔️ Strong emotion (fear, euphoria)
⚔️ Price close to liquidation
⚔️ Unexpected strong news
⚔️ Loss greater than planned
🪙 Golden rule for futures
First, protect your capital, then think about gaining
Many traders lose not due to bad entries,
but because they don’t know when to exit.
Blessings and success
Thank you for following me 🫂
