Cryptocurrency contract trading is known as a high-risk, high-return investment method, and many people have made considerable profits through this method. But what secrets are hidden behind it? Who made all the money? This article will delve into it and uncover the truth about cryptocurrency contract trading.

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1. The principle of making money from contract trading

Contract trading refers to trading at a fixed ratio within a fixed contract period according to market conditions. The trading subject can choose to go long or short the market and earn the difference according to market conditions. If the long party makes a profit, the short party loses money, and vice versa. In other words, it is not a person or institution that earns the difference, but the transaction between two trading parties.

2. Profits from the Trading Platform

Trading platforms are institutions that provide contract trading services. They charge transaction fees and platform maintenance fees. These fees are converted into platform revenue. Some excellent trading platforms will use these revenues to improve service quality and technical level, thereby gaining more user trust. Therefore, although the revenue of the trading platform is not directly obtained from the transaction, it is a necessary part of contract trading.



3. Impact of market fluctuations

Market fluctuations may have a serious impact on contract trading. Since the margin required to be paid by the long or short party is different, market fluctuations may cause losses to the long or short party. This is also the high risk of contract trading. It can be said that market fluctuations are one of the main risks of contract trading.

4. Personal Risk Control

Risk control is very important for every investor. In cryptocurrency contract trading, correct risk control can prevent investors from suffering huge losses when the market fluctuates. Investors should set reasonable take-profit and stop-loss points according to their actual situation. At the same time, they also need to stay alert at all times to avoid adverse effects of sudden changes in market conditions on their investments.

In short, there is no phenomenon that one person earns all the profits in cryptocurrency contract trading. The profit is made from the price difference between the two trading parties. At the same time, the income of the trading platform is also an indispensable part. As market volatility is one of the main risks of contract trading, investors need to correctly control risks and formulate appropriate investment strategies to obtain their own profits in the cryptocurrency market where the market conditions are unpredictable.