Answer for Financial Guru
Example of a short futures trade:
Current BTC price: $98,236 (price is current at the time of writing)
You open a short position for 0.01 BTC (equivalent to $982.36).
The price drops to $97,000, and you close the position.
Profit calculation: $98,236 - $97,000 = $1,236 per 1 BTC. For 0.01 BTC, this is $12.36 (excluding commission).
Remember, in a short, you earn on the price drop.
The minimum amount for a futures transaction depends on the asset you choose and the minimum contract size. For BTC, the minimum contract is often 0.001 BTC, which at the current price of $98,236 is approximately $98.24.
For 2-5% income, you will need at least $50-100 for a transaction with minimum leverage.