Let me share something important with you.
When BTC price drops and a situation develops where opening a long position in futures looks attractive, I never open the long immediately. Instead, I first go to the spot market and buy BTC. Then I transfer that BTC as an asset to the futures account and open the long position at a more favorable price.
The reason is simple: when we buy BTC in the spot market first, buying pressure directly contributes to upward price movement. Then, when we subsequently open a long position in futures, it can add further upward pressure to the futures market.
However, if we open the futures long first, we are not creating the same spot buying pressure. The futures position simply becomes another contract in the derivatives market, which can potentially become a target for liquidation.
That is why, whenever possible, I prefer buying BTC on the spot before opening a futures long. Then I use that BTC as the underlying asset for the futures position.
Once you understand this market dynamic, you can develop a much better understanding of how your own execution can interact with price rather than simply reacting to price movements. đ
Buy & trade Bitcoin here: đ $BTC đ°
#BTC #tradingtechnique
When BTC price drops and a situation develops where opening a long position in futures looks attractive, I never open the long immediately. Instead, I first go to the spot market and buy BTC. Then I transfer that BTC as an asset to the futures account and open the long position at a more favorable price.
The reason is simple: when we buy BTC in the spot market first, buying pressure directly contributes to upward price movement. Then, when we subsequently open a long position in futures, it can add further upward pressure to the futures market.
However, if we open the futures long first, we are not creating the same spot buying pressure. The futures position simply becomes another contract in the derivatives market, which can potentially become a target for liquidation.
That is why, whenever possible, I prefer buying BTC on the spot before opening a futures long. Then I use that BTC as the underlying asset for the futures position.
Once you understand this market dynamic, you can develop a much better understanding of how your own execution can interact with price rather than simply reacting to price movements. đ
Buy & trade Bitcoin here: đ $BTC đ°
#BTC #tradingtechnique