I just saw many new friends asking about futures, so today I want to share a few things about this type of trading.

What is futures? Simply put, it is a leveraged trading method. You can predict the upward trend (Long) or downward trend (Short) of the price. If your prediction is correct, you make a profit; if wrong, you incur a loss. Most exchanges offer this feature for major coins.

However, the risk when trading futures is really not small, especially for beginners. The maximum leverage can go up to X100, and this is a "double-edged sword." For example, if you have $1, using X100 leverage means you can control $100. But if the market moves against you, you will lose all your principal in an instant—that's called liquidation. That’s why it’s essential to understand thoroughly before participating.

So how to control risk when trading futures? First, you need to know two important concepts: SL (Stop Loss) and TP (Take Profit). Most exchanges have this automation feature. When placing an order, always set SL and TP to avoid unexpected surprises.

I have a few rules based on my personal experience:

If trading BTC, only use up to X5 leverage. For ETH or altcoins, X3 or less is safe. Divide your capital into multiple entries to increase the ability to withstand losses. And it’s very important to set liquidation points as far away as possible to avoid sudden liquidation.

Finally, I just want to emphasize that this is only sharing experience, not investment advice. Risks always exist, so you need to learn thoroughly before stepping into the futures world. Wishing you success!