Future trading can be a great option for those with low capital, like $100 or less. Here's an overview for new traders:
With Binance, you can take out loans ranging from 2X to 125X your capital. For example, if you have $100 and use 10X leverage, you'll have $1000 to trade with. If you make a profit, you keep it all. If you incur losses, you only lose your $100; Binance doesn't ask for their $1000 back.
This makes future trading seem like a win-win situation. You don't need to put all your capital into one asset either; using 10X leverage, each $10 you invest is effectively worth $100. However, it’s advisable not to exceed 10X leverage.
For example, if you invest $1000 in PEPE at a buy price of 0.00000900, your liquidation price would be 0.00000750. This means if the price drops below 0.00000750, you'll lose your $100. The higher the leverage, the closer the liquidation price comes to your buy price, increasing the risk: 10X leverage equals 10X risk, 50X leverage equals 50X risk. Setting a stop loss can help protect your investment.
If PEPE's price rises to 0.00001000, you could gain another $100. To learn more about future trading on Binance, check out tutorials on YouTube. I hope this simplified explanation helps new traders. Good luck!
