Futures trading help - page 2. | Bitcointalksearch.org

Tytanowy Janusz

legendary

Activity: 2156

Merit: 1622

Quote from: marimanga on October 01, 2021, 12:39:23 PM

I'm new to futures trading but not in crypto.

I like to hold coins for long term but right now im interested in futures trading and there is a thing i don't understand and cannot find answer on internet (lol).

Lets say i bought long BTC/USD at $47,000 and if bitcoin goes down like at $42,000 will my open order will be canceled automatically without my permission and lose my money. I know stop limit loss but im not interested at this right now because im always behind my computer. Also... Can you hold open orders like for a year and if it goes up i take alot of profits.. My concern is only if im at loss i don't like to sell and lose but im concerned if my open order will be canceled automatically if not set up limit loss and take loss, i always wait for the price to go up at the same price i bought. English is not my first language if my question is not clear please let me know i'll try to explain below in comments. Thank you.

Its called liquidation as previous posters said. Its caused by over leveraging. Exchange is not a charity or gambling organization. If you used 10x leverage, longed 1 BTC at 47k, used 4k as collateral means that if BTC is down to 43k you collateral is equal to 0. If exchange wont close your positions means its exposed to currency risk. Its not your risk anymore. You have 0. Its their risk now. They have to close your position. If you dont want them to sell have to always make sure that your collateral is big enough. As big as your possition if you want to be sure that you are safe even during flash crash that happends from time to time especially on illiquid exchanges.

Cryptoababe

member

Activity: 898

Merit: 19

Do it For Better Humanity (Bitget trader)

My advice for you is not to bother to go into futures Trading. Its very risky unless you are going to use less than 1x leverage which is also a little bit risky.

TheUltraElite

legendary

Activity: 2898

Merit: 1253

So anyway, I applied as a merit source :)

Quote from: marimanga on October 01, 2021, 12:39:23 PM

I like to hold coins for long term but right now im interested in futures trading

That is spot trading that are talking about.

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Lets say i bought long BTC/USD at $47,000 and if bitcoin goes down like at $42,000 will my open order will be canceled automatically without my permission and lose my money.

When you open a long position, it means you are buying a contract where you say that the price will be going up and the exchange accepts that keeping your money aside. If you predict it correctly on a specific time span, you will win the contract and therefore profit. But if your prediction comes out wrong, then you will lose the money or have the keep the contract open for long in which case you need to keep paying liquidation fees to avoid getting your position liquidated.

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I know stop limit loss but im not interested at this right now because im always behind my computer.

Are you a zombie? Roll Eyes

Logically speaking, you should have a social life. Making money in trading is not everything. Dont know where you are coming from, but usually people develop bots to track the movements and use smartphones apps to be mobile and trade on the go.

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Also... Can you hold open orders like for a year and if it goes up i take alot of profits..

One phrase : Liquidation fees. This one phrase is the thing that futures traders hate and that is what the exchange will be cutting from your side if you have to keep the position open for a longer period.

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My concern is only if im at loss i don't like to sell and lose but im concerned if my open order will be canceled automatically if not set up limit loss and take loss, i always wait for the price to go up at the same price i bought.

You are confusing spot trading with margin trading. You dont sell the position in margin, you open a short/long position.

JeromeTash

legendary

Activity: 2338

Merit: 1261

Heisenberg

Quote from: marimanga on October 01, 2021, 12:39:23 PM

I'm new to futures trading but not in crypto.

I like to hold coins for long term but right now im interested in futures trading and there is a thing i don't understand and cannot find answer on internet (lol).

Lets say i bought long BTC/USD at $47,000 and if bitcoin goes down like at $42,000 will my open order will be canceled automatically without my permission and lose my money.

Only if you have longed (predicted that the price will rise. Depending on the leverage you used, Yes, your position would be liquidated at some point). If you shorted (predicted the price drop), You would be making profits if the price dropped.

Please be very careful with future trading. Lots of traders have lost money in there. I suggest you thoroughly learn about futures trading before using your real money in it.

Quote from: marimanga on October 01, 2021, 12:39:23 PM

I know stop limit loss but im not interested at this right now

You might want to rethink about this. Stop limit usually help prevents you from getting your whole margin getting liquidated.

Quote from: marimanga on October 01, 2021, 12:39:23 PM

Can you hold open orders like for a year and if it goes up i take alot of profits

Unlikely, since funding rate could eat up your profits

Fesatmas

sr. member

Activity: 2268

Merit: 275

In general, the market is divided into 2, namely the spot market and the futures market.
First: the spot market which is broadly speaking, is buying low, selling high. For this point I will not explain further maybe you already know.

The second is the future market that you are questioning. So in the futures market we don't buy the crypto, but we buy the contract which requires us to predict the price will go down or up. Simply put, when what we predict is correct then we will get profit.

Furthermore, in futures trading, of course there is something called margin and leverage (Margin is how much capital we save on certain cryptocurrencies, while in leverage itself is leverage (even with small capital we will get big profits) But there is something you need to note that If you want to be safe in futures trading, it would be nice if you don't have too much leverage.

Dragonfund

full member

Activity: 546

Merit: 148

It seems you know only little about future trading, it's different from spot trading. There are things you need to understand before you open a position in futures if not, you loose your funds before you realize.
Your liquidation depends on your leverage size, if your leverage is higher, there is more likely that your trade will be force to liquidated the moment your trade didn't go as plan and that's why by default, it's always set at 10x.
Your margin is also important to note, you can either Isolated margin and cross margin, isolated will have a single balance on a just a single position while cross will be for all margin balance.

You should watch more on video tutorials and also used testnet futures for test before using real money. Check Binance futures testnet, you will be given free fund for test, not spendable, just for test and familiarity

marimanga

jr. member

Activity: 52

Merit: 1

I'm new to futures trading but not in crypto.

I like to hold coins for long term but right now im interested in futures trading and there is a thing i don't understand and cannot find answer on internet (lol).

Lets say i bought long BTC/USD at $47,000 and if bitcoin goes down like at $42,000 will my open order will be canceled automatically without my permission and lose my money. I know stop limit loss but im not interested at this right now because im always behind my computer. Also... Can you hold open orders like for a year and if it goes up i take alot of profits.. My concern is only if im at loss i don't like to sell and lose but im concerned if my open order will be canceled automatically if not set up limit loss and take loss, i always wait for the price to go up at the same price i bought. English is not my first language if my question is not clear please let me know i'll try to explain below in comments. Thank you.

Topic: Futures trading help - page 2. (Read 229 times)