I just saw that a lot of new friends are asking what “futu” is, so today I’m writing this article to share my experience.

You may have heard of futures already. This is a type of leveraged trading that almost all crypto exchanges support. So, what exactly is futu? It’s an order type based on a prediction of the price trend. You go Long if you expect the price to rise, or Short if you expect it to fall. If you’re right, you make a profit; if you’re wrong, you lose money. The best part is that you can borrow money from the exchange to increase your capital by many times.

But this is exactly the dangerous part that I want to warn you about. The maximum leverage can be as high as X100. That means if you have $1, the exchange lends you $99 so you can trade with $100. The problem is that if you choose the wrong direction, your losses keep getting bigger and bigger until your assets are completely liquidated—which is what everyone calls “asset liquidation.” At that point, you lose 100% of your original capital.

That’s why risk control is absolutely essential. I usually follow these principles:

First, always use SL (Stop Loss) and TP (Take Profit). These are automatic tools that help you cut your losses in time or lock in profits before it’s too late. Every exchange has this feature—learn to use it proficiently.

Second, about leverage levels: if you’re trading BTC, the maximum should be no more than x5. If you’re trading ETH or other altcoins, x3 is a reasonable threshold. Don’t get greedy and use excessively high leverage just for bigger gains.

Third, split your capital into multiple “armor-piercing” pumps. Instead of putting all your funds into one trade, divide them into several portions to increase your ability to withstand losses. At the same time, pay attention to the liquidation level—try to keep it as far away as possible, so you don’t just glance for a moment and then get an email about asset liquidation.

Remember, this is only shared experience, not investment advice. Futures trading carries very high risks, especially for beginners. Learn carefully, practice on a demo first, and then enter with real capital. Follow me to get more articles about crypto trading.