I just saw some of you asking what futures trading is, so I want to share a bit of my personal experience.

Basically, what is futures trading? It’s a form of placing orders using leverage on trading platforms. Currently, almost all exchanges have this feature enabled. The operation is quite simple: if you predict the price will go up, you go Long; if you predict the price will go down, you go Short. If your prediction is correct, you make a profit; if wrong, you incur a loss. But this type of trading is quite risky, especially for beginners.

What is the most dangerous aspect of futures trading? It’s leverage. Most exchanges allow leverage up to X100. The idea is very simple: if you have $1, using X100 means you borrow an additional $99 to participate with $100. But because it’s borrowed money, if the trade goes against you and the loss reaches your initial capital, the platform will automatically liquidate all your assets. At that point, 100% of your funds will be lost. Pretty scary, right?

I’ve learned a few things from my own experience and want to share how to manage risk when trading futures. First, understand two important features: SL (Stop Loss) and TP (Take Profit). All platforms support automatic configuration of these points, so you should master using them to avoid getting liquidated.

As a basic principle: if trading BTC, I recommend using leverage of X5 or less. If trading ETH or other altcoins, X3 or less is safer. Another tip is to split your capital into multiple rounds to increase your ability to withstand losses. And most importantly, pay attention to the liquidation level — try to keep it as far away as possible; otherwise, you’ll just see the liquidation email as soon as you look at it.

I want to emphasize that this is just sharing experience, not investment advice. Anyone interested in learning more about what futures trading is and other strategies, just follow me for updates.