In futures contract trading, the main principle that must be understood is that the execution of transactions between buyers and sellers is carried out on the basis of a contract that has been agreed at the beginning. If the market price of the asset changes, whether it increases or decreases, the applicable price remains the agreed price. The difference between the agreement price and the actual price is called margin, which is also the main object of futures trading.

In futures trading, the potential profit or loss obtained by traders depends on the margin between the price specified in the contract and the current value of the underlying assets. For example, the futures value of share A is 100 thousand, while currently the actual price is 120 thousand. This means that traders have the opportunity to gain a profit of 20 thousand from this futures trading activity.

#TipsTradingFutures #Binance