Spot and future trade | Bitcointalksearch.org

GreatArkansas

legendary

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Quote from: _act_ on January 13, 2022, 06:46:46 AM

I have $100, I want to keep it temporary on an exchange in bitcoin and I want to trade future trading. Assuming I send the bitcoin to my future wallet on the exchange and I go 1x short position.
(.....)

This will act as collateral, your Bitcoin will become collateral if you trade on futures. But not all exchanges support this.
Binance got USDT-M and COIN-M,
so you will use COIN-M to trade futures, USDT-M if you want USDT to use.

Another alternative is using FTX Exchange, you can use your Bitcoin as collateral when you trade on futures there and they have only a sub-account not the same as Binance that have a separate wallet for Futures.

aranacj

newbie

Activity: 28

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Just think of your Bitcoin sent in exchange for futures trading as a collateral.

So, you've set a BTC/USDT short position with $100 worth of bitcoin as a collateral.
If price of BTC goes up then your collateral TLV will raise up to where it will be liquidated if it continuously goes up.
If the price of BTC goes down then you will earn something with regards to the size of the trade and multiplier or leverage used.

But be mindfull there are interest fees or we say swap fees or roll over fees. you will
pay that everytime depending on the exchange schedule collection of fees.

Also, $100 worth of BTC as collateral will surely be liquidated, don't do it. Only do Futures when you have a deep pocket that
you can increase the collateral evrytime TLV reach to a risky situation to prevent liquidation.

palle11

sr. member

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You are probably looking to profit in all angles and life doesn't give us that. You either lose some and gain some. The long and short of it is you need to tether your money when you observe drop in price and you can enter again in the market to buy when price is about to rise. This is what you can do if you can identify the times to make the move.

Yamifoud

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Quote from: _act_ on January 13, 2022, 06:46:46 AM

Is this possible?

I have $100, I want to keep it temporary on an exchange in bitcoin and I want to trade future trading. Assuming I send the bitcoin to my future wallet on the exchange and I go 1x short position.

I guess because my bitcoin in spot value in dollar will increase if the market is going higher but I am losing the value in future trading because I go short, the value in dollar will remain the same?

Also if the market price of bitcoin decrease, I will be losing value in dollar in spot but the future favours me. This also means the value will be the same?

I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

But what I think is that you need to know more about spot and futures trading before depositing your money. I'm not going to stop your plan but it was very important that you must know how trading works. Before trying future trading, I think you need to become an expert to spot trading as it was too risky. Honestly, this seems so hard to work for a newbie (maybe you).
You'd better not hurry. Like being too attracted to earning more profit that is usually the reason for our failure, and I don't want it to happen to you.

Mpamaegbu

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Quote from: _act_ on January 13, 2022, 06:46:46 AM

I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

Your question is as conflicting as confusion is. You want to invest in an unstable coin and you still want price to remain stable? How possible do you think that will be? If you're looking for a way of keeping your capital above what it's after you've invested, I will advise you to buy low and then sell when price gets to correction point and tether your capital thereafter. That's if you've a handle on trading. It's a risk if you don't know how to maximize that. That way, your capital won't go down. However, if you're looking for a way to not risk losing it at all; just swap it into a stable coin like USDT or BUSD.

jrrsparkles

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Quote from: _act_ on January 13, 2022, 06:46:46 AM

Is this possible?

I have $100, I want to keep it temporary on an exchange in bitcoin and I want to trade future trading. Assuming I send the bitcoin to my future wallet on the exchange and I go 1x short position.

I guess because my bitcoin in spot value in dollar will increase if the market is going higher but I am losing the value in future trading because I go short, the value in dollar will remain the same?

Also if the market price of bitcoin decrease, I will be losing value in dollar in spot but the future favours me. This also means the value will be the same?

I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

Spot trading is the best form of any trading methods available, probably its slower in giving returns but you can decide what to do according to the current market situation whereas in future you may not be able to do that. But whatever suits you and giving returns just stick with it but in general I am always prefer and recommend spot trading to anyone who wants to trade cryptos especially.

JeromeTash

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Heisenberg

Quote from: _act_ on January 13, 2022, 06:46:46 AM

Is this possible?

I have $100, I want to keep it temporary on an exchange in bitcoin and I want to trade future trading. Assuming I send the bitcoin to my future wallet on the exchange and I go 1x short position.

I guess because my bitcoin in spot value in dollar will increase if the market is going higher but I am losing the value in future trading because I go short, the value in dollar will remain the same?

Also if the market price of bitcoin decrease, I will be losing value in dollar in spot but the future favours me. This also means the value will be the same?

I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

Use USDT marginated futures or USDT perpetual contracts like BTCUSDT depending on the derivatives exchange. In this case, you will be using USDT as collateral. So the value won't negatively be affected if a coin price drops, but you will also be getting so profits for shorting.

Inverse perpetual contracts or Coin Marginated futures Like BTCUSD are mostly good if you are longing and the market is on the rise.

2girls

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If you want to stable your investment then invest in stable coins why are you trading in the spot and future with BTC?
I think you are thinking to get profit from both sides if the market goes up or down. If you are thinking so, then I think that will not work. Because Spot and Future are different trading they have no same profit ratio.

tvplus006

legendary

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To the Moon

Quote from: _act_ on January 13, 2022, 06:46:46 AM

...I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

If you want the price of your coin to remain stable, then buy a stablecoin and put it on a deposit that will bring you a small percentage of profit. The trader is interested in high volatility, which provides him with a profit. As for your $100, you will obviously lose it in trading, so spend it better on training.

MIner1448

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Why leverage x1? with 100 dollars it will be very difficult to raise your deposit with such a leverage, start at least with x3 and take profit or in extreme cases a loss, but be sure to use a stop loss if your trade goes into liquidation and you see on the chart that there is growth potential , there you can throw a margin on the deposit, so that the transaction is not liquidated, this often saves the situation

AicecreaME

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Quote from: _act_ on January 13, 2022, 06:46:46 AM

Is this possible?

I have $100, I want to keep it temporary on an exchange in bitcoin and I want to trade future trading. Assuming I send the bitcoin to my future wallet on the exchange and I go 1x short position.

I guess because my bitcoin in spot value in dollar will increase if the market is going higher but I am losing the value in future trading because I go short, the value in dollar will remain the same?

Also if the market price of bitcoin decrease, I will be losing value in dollar in spot but the future favours me. This also means the value will be the same?

I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

$100 is too little to be put in futures, put it in stock instead. Even though you put a 1x leverage in futures, if the price oppose your technical analysis, your $100 will vanish no matter what, while in futures, you can hodl while you are waiting for the price to go up, easy as that. I recommend you study first about futures on how to make profits on it before you risk your money on it.

Maus0728

legendary

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Quote from: _act_ on January 13, 2022, 06:46:46 AM

I guess because my bitcoin in spot value in dollar will increase if the market is going higher but I am losing the value in future trading because I go short, the value in dollar will remain the same?

If I understood you correctly, you are SHORTING BTC/USDT pair on the Futures Market, am I correct? If yes, then you are losing money on the market rather than winning it. Choosing between LONG and SHORT, will serve as your identifier for making a directional bias.

LONG means that your directional bias is for the assets' price to go up while SHORT is the exactly the opposite.

Quote from: _act_ on January 13, 2022, 06:46:46 AM

Also if the market price of bitcoin decrease, I will be losing value in dollar in spot but the future favours me. This also means the value will be the same?

Exactly. However, I can't understand what you mean by the "value being the same".

In FUTURES, as far as I know, there are two types of futures contract; COIN-M and USDT-M Futures contract. COIN-M basically means that you are using the crypto itself as your collateral, and that if you are shorting BTCUSDT pair, you are increasing the quantity of your BTC when price goes down.

On the other hand, USDT-M uses USDT as your collateral againts BTC, so if your shorting the market, you are increasing the quantity of your USDT instead of BTC if the market structure is in downtrend.

Hope it answers your question.

Ararbermas

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Quote from: _act_ on January 13, 2022, 02:17:00 PM

Quote from: jstmtlqc on January 13, 2022, 09:30:37 AM

You will pay fees for your futures so you would end up slowly losing your capital.

I will use 1x, the fee will be very low. Not only that, the amount to trade with future will be slightly lower than what is in spot account that will be taken to future account, but the difference should not be that significant. I do not receive enough response from this thread, I will try it myself and see how it works.

yhup you should make research because not all traders here are using futures i guess, because of liquidation and the risk of course. Infact there's already some existing content especially in youtube about futures. maybe you can get more information through that way than here that seems mostly are on spot trading only. Grin

_act_

legendary

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Lightning network is good with small amount of BTC

Quote from: jstmtlqc on January 13, 2022, 09:30:37 AM

You will pay fees for your futures so you would end up slowly losing your capital.

I will use 1x, the fee will be very low. Not only that, the amount to trade with future will be slightly lower than what is in spot account that will be taken to future account, but the difference should not be that significant. I do not receive enough response from this thread, I will try it myself and see how it works.

jstmtlqc

newbie

Activity: 30

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You will pay fees for your futures so you would end up slowly losing your capital.

_act_

legendary

Activity: 1064

Merit: 1298

Lightning network is good with small amount of BTC

Is this possible?

I have $100, I want to keep it temporary on an exchange in bitcoin and I want to trade future trading. Assuming I send the bitcoin to my future wallet on the exchange and I go 1x short position.

I guess because my bitcoin in spot value in dollar will increase if the market is going higher but I am losing the value in future trading because I go short, the value in dollar will remain the same?

Also if the market price of bitcoin decrease, I will be losing value in dollar in spot but the future favours me. This also means the value will be the same?

I am looking for a way I can put money in this way on unstable coin in a way the price will remain almost stable with only little difference. Is this possible?

Topic: Spot and future trade (Read 185 times)