I just received some questions about what futures are and how to trade safely, so I wrote this article to share my personal experience.

Futures (Hợp đồng tương lai) are leveraged trading on exchanges, allowing you to predict price trends. Long means predicting an increase, Short means predicting a decrease. It sounds simple, but what is futures that can cause you to lose all your capital if you're not careful? It’s because of leverage.

The maximum leverage is usually x100 – meaning you borrow based on your original capital. If you have $1, using x100 means borrowing an additional $99 to trade with $100. The problem is, when you're wrong, you get liquidated entirely. That’s why, what is futures if you don’t know how to manage risk? It’s just a quick way to lose money.

I learned these things from experience:

First, always use SL (Stop Loss) and TP (Take Profit). These are automatic features to cut losses and take profits, helping you avoid asset liquidation due to forgetting to monitor.

Second, control leverage. If trading BTC, x5 is the maximum; for ETH and altcoins, x3 is enough. The higher, the more dangerous.

Third, divide your capital into multiple entries to increase your ability to withstand losses. Pay special attention to the liquidation point – keep it as far away as possible, so you don’t get an email alerting you of asset liquidation just by looking at it.

In summary, understanding what futures are is just the first step. The important thing is that you must know how to manage risk before placing orders. This is just my personal sharing, not investment advice. Wishing you safe trading!