📌 What Futures Trading Really Is

A futures contract is a financial agreement to buy or sell an asset at a later date at a price agreed today. But in crypto, most platforms use perpetual futures, meaning:

• There’s no fixed expiry date — you can hold as long as you want. 

• You don’t have to own the coin — you’re speculating on price movement (up or down).

• You can long (bet price rises) or short (bet price falls).

• You can use leverage (borrowed money) — this can increase profits and losses. 

💡 Important risk note: If price moves against you, you can get liquidated — meaning your position closes automatically to stop the exchange from losing money. Always use risk management.

📌 How a Trade Works (Step-by-Step)

1. Transfer funds (e.g., USDT) into your futures wallet.

2. Choose a pair (like BTC/USDT, ETH/USDT).

3. Decide:

• Long — you think price will go up.

• Short — you think price will go down.

4. Choose leverage (e.g., 5x, 10x). Smaller leverage = safer.

5. Set risk management:

• Take profit

• Stop loss

6. Open the position.

7. Monitor or close the trade when targets are hit.

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