2 Features of Futures trading that you should know
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1️⃣ In futures contracts, you can open both long and short positions, which allow you to profit from short-term price movements regardless of a bull or bear market.
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2️⃣Futures trading offers investors the opportunity to speculate on future asset prices or hedge against market fluctuations. Leverage plays a crucial role in the world of cryptocurrency, offering traders the opportunity to maximize their potential.
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One common example of leverage in crypto margin trading is the 20X ratio. This means that for every dollar of the trader’s capital, they can control a position worth 20 dollars. In other words, with a 20X leverage, a trader can amplify their exposure to the market by a factor of 20.
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While this can lead to substantial profits if the trade goes in their favor, it’s important to remember that leverage also magnifies losses. Therefore, traders must exercise caution and implement proper risk management strategies such as setting stops when using leverage and margin trading.
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Follow for more trader-friendly knowledge at Bitazza Global and Bitazza Content Hub https://content.bitazza.com
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Cryptocurrency is highly risky; investors may lose all investment money. Investors should study the information carefully and make investments according to their own risk profile.
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Reference:
https://www.etoro.com/crypto/what-is-crypto-margin-trading/
https://www.investopedia.com/terms/l/leverage.asp
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