in the name of god; several important points in futures trading
Note 1 All futures transactions
It is necessary to know that futures transactions Did not arise in the crypto market, And long before the existence of this market in the world high value transactions have been carried out.
These transactions are very popular on basic commodities such as corn wheat or oil and precious metals, And traders predict the futures price of these items and make transactions on it.so futures transaction are contract wich are closed between the buyer and the seller on a specific asset with a specific maturity.
And based on that transactions and settlements are done. And the examples of futures transactions in the digital currency market are a very small part of such transactions.
note2 what does long or short mean
As we said the futures market is a two sided market. You can also profit from the price drop.in other markets such as Forex to transactions that are made in the direction of purchase it will be done with the buy button.that this category of transactions in crypto is equivalent to taking long.
And transactions that will be done in the direction of sales. It means our prediction A decline is an asset price it will be Done with the sell button, this category of transactions in the cryptocurrency market it is equivalent to wearing shorts.
So by going short we will profit collapse of an asset. And with long catch we profit from the increase in the price of an asset.
Note3 what is leverage
One of the fundamental concepts that make up the structure of the futures market, And it allows us to earn more profits than the cash market it is a concept called leverage.
Leverage gives your asset a multiplier for example if you on the bitcoin digital currency with the symbol (BTC USDT)in part of futures OR perpetual want to make a transactions the condition will be like this assuming possession 1000$ and bitcoin 25000$ price if you do spot transactions you can buy four hundredths of bitcoin
But digital currency exchanges they give you this opportunity wich is in the from of futures transactions using asset leverage 1000$our with the leverage 10 to10000$ increase. You will be able to buy 0.4 bitcoin, And you can make up to 10times more profit or loss from volatility.
Actually the exchange here will lend you the rest of the money,And at the end he will withdraw his plus transactions fees, leverages depend on the exchange and the currency you choose to trade.for example in exchange Binance you can use up to 100 leverage on bitcoin digital. currency
Note 4 what is the transactions Fee
Transactions fees are different for each exchange. But the key point in All of them is the amount of leverage and the amount of capital And the second is the duration of position.👉
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