Futures Strategy #2
What to consider when trading futures
Leverage does not reduce market risk. It reduces the required initial margin, but increases the impact of price movements on your capital.
A stop-loss should be calculated for the entire position. Several filled orders can significantly increase your loss.
Consider liquidation. Averaging down against the price movement can bring the liquidation price closer to the market.
Don't confuse notional value with margin. For example, a position of 1,000 USDT at 10× leverage requires approximately 100 USDT in initial margin, but the actual risk depends on the exit price, fees, and exchange conditions.
Plan to cancel unfilled orders. After the stop is triggered, the remaining orders should not accidentally open a new position
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What to consider when trading futures
Leverage does not reduce market risk. It reduces the required initial margin, but increases the impact of price movements on your capital.
A stop-loss should be calculated for the entire position. Several filled orders can significantly increase your loss.
Consider liquidation. Averaging down against the price movement can bring the liquidation price closer to the market.
Don't confuse notional value with margin. For example, a position of 1,000 USDT at 10× leverage requires approximately 100 USDT in initial margin, but the actual risk depends on the exit price, fees, and exchange conditions.
Plan to cancel unfilled orders. After the stop is triggered, the remaining orders should not accidentally open a new position
#BTCUSD
#SOLUSD
#ETHUSD