Forgot to mention where you place the stop. With what leverage and what will happen if the price quickly drops to 105000?

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.


#BTC #FutureTarding