READ THIS BEFORE STARTING YOUR FUTURES TRADING BEFORE LOSING YOUR ASSET.One thing beginners may not be aware of in futures perpetual trading that can lead to the loss of their assets is the concept of leverage.
Leverage allows traders to amplify the potential gains from a trade, but it also significantly increases the risk of losses. Many beginners might not fully understand how leverage works and the potential impact it can have on their positions.
Failure to understand the risks associated with leverage can lead to significant losses, especially in volatile markets. Beginners may over-leverage their positions, which means they are borrowing a larger amount than they can afford to lose. This can lead to swift and substantial losses if the market moves against them.
Additionally, beginners may not be fully aware of risk management strategies such as setting stop-loss orders and position sizing. Without implementing proper risk management, traders can easily lose their assets when trading futures perpetually.
It's important for beginners to take the time to educate themselves about leverage and risk management before engaging in futures perpetual trading to minimize the potential loss of their assets.