I just saw many new friends asking about futures and wanting to learn more in detail. Actually, the risk when trading futures is quite high if you don't know how to manage it, so today I’ll share some of my personal experiences.

First of all, you must understand everything clearly. Futures (forward contracts) are simply predicting whether the price will go up (Long) or down (Short) and placing orders accordingly. If your prediction is correct, you make a profit; if wrong, you incur a loss. This mechanism is available on almost all trading platforms nowadays, but not all coins have futures.

The most dangerous part is leverage. Most exchanges allow up to x100 leverage. It works like this: you have $1, and with x100 leverage, the exchange loans you an additional $99 so you can trade with $100. But since it’s borrowed money, if you go in the wrong direction, your loss can reach your initial capital, leading to liquidation (total loss). That’s why trading futures carries very high risk, especially for beginners.

To control risk, you must use SL (Stop Loss) and TP (Take Profit). All exchanges have this feature to automate your trades, preventing you from losing everything in a blink. When placing orders, try to make it a habit to set these two parameters.

Based on my experience, I have a few small rules for beginners:

If trading BTC, only use up to x5 leverage. If trading ETH or altcoins, x3 is the maximum. Divide your capital into multiple parts to better withstand losses. And most importantly, keep your liquidation point as far away as possible to avoid accidental liquidation.

Remember, I’m only sharing my experience, not investment advice. To stay updated with signals and market news, follow to not miss out.