Do you know what trading futures is? Today I will share some lessons I’ve learned from trading experience, especially the risks you need to be aware of before entering the futures world.

Here are the most important things I see.

You may have heard that futures are a leveraged trading method on exchanges. This industry is growing rapidly; most coin trading platforms offer this feature for coins like (, but not all projects are listed with futures). Essentially, what is trading futures? It’s simple — it’s a way to place orders based on price trend forecasts. You choose Long if you predict the price will go up, or Short if you think the price will go down. If your prediction is correct, you make a profit. Wrong? You will incur a loss.

But this is where things get more complicated. The maximum leverage can go up to x100, and this is a double-edged sword. Leverage means you borrow extra money based on your original capital. For example: you have $1, and with x100 leverage, you can borrow an additional $99 to have a total of $100 for trading. Sounds great, but the problem is when you choose the wrong direction, losses accumulate very quickly. When losses reach the original capital threshold, your assets will be liquidated — losing 100% of your initial funds.

That’s why risk management is critically important. When placing orders, you need to understand two concepts: SL (Stop Loss - the point to cut losses) and TP (Take Profit - the point to take profit). Most exchanges have features to automate these two points, helping you avoid sudden liquidation situations.

I want to share some principles from my experience for those new to trading futures:

If you trade BTC, keep the maximum leverage at x5 or below. This is a safer level.

For ETH and altcoins, I recommend using x3 or below. These coins are more volatile, so be more cautious.

One technique I often use is dividing your capital into multiple entries over several rounds, which helps increase your ability to withstand losses if the market moves against your forecast.

Pay attention to your liquidation point. Try to set it as far away as possible, because if not, you might get a liquidation notice in the blink of an eye.

Finally, these words are just my personal experience, not investment advice. You should do thorough research before deciding to participate in futures trading. Follow me to stay updated with more information and signals.