PUT - Crypto trading is very risky of losing assets quickly if a trader does not master the basic knowledge or patterns in futures trading on crypto exchanges.

Thus, it is a good idea to briefly read some of the things that are needed when you decide to enter futures trading in a mission to secure your assets and make a profit.

A futures contract is a contract that obligates the parties to buy or sell an asset at a certain price and time in the future.

The main principle in futures trading If the market price of an asset has soared or decreased from the price agreed upon in the contract, then the difference is called margin. Well, this margin is the main object in Futures Trading.

Deepening Futures Contracts in Futures Trading

Examples of world-famous futures exchanges include Binance Futures trading. Then, only crypto assets are counted as assets in futures trading that provide transaction contracts on the decentralized market aka DEX.

What are the initial tips for doing futures trading?

What preparations do you need before trading futures?

In this case, you can plan a trading plan based on technical analysis that you can use to determine entry, exit, and stop loss levels. However, how do you use this technical analysis?

a. Entry Point

You can make an entry based on the golden cross signal. In other words, you can enter the futures market if the asset price movement line in the last 1 day (1-day Simple Moving Average) crosses the asset price movement in the last 7 days (7-day Simple Moving Average). This technical analysis instrument is effective in determining the entry level in long-term trading on the futures exchange.

b. Titik Stop Loss

The high price fluctuations in the futures market make a loss tolerance of 5% of your purchase price the most ideal point.

c. Titik Exit

While selecting entry and stop-loss levels requires adequate technical analysis, determining exit levels on the futures exchange is more complicated.

Three Patterns to Secure Assets When Trading Futures

1. Long Trading

Traders buy futures assets and profit when their market price increases compared to the contract price.

2. Short Trading

On the other hand, if the commodity price falls in the market beyond its contract price, you can get a margin from selling the futures contract.

3. Spread Trading

Basically this trading is similar to a portfolio diversification pattern. Simultaneously, the trader buys different futures contracts of the same underlying asset or assets. #TipsTradingFutures #Binance