Crypto Made Easy: Futures trading and NFT by CHIOMA OREKIE

Author:CHIOMA OREKIE [OREKIE, CHIOMA]
Language: eng
Format: epub
Published: 2022-05-10T00:00:00+00:00

Margin

This is the portion of your assets/capital that you set to enter the trades

Levergae

This tell you by how much your prcentage profit is mutiplied by, to get

more gain than you will normaly get from the saer trade on sport

trading.

Methods to futures trading

ISOLATED

This simply means trading with only a specific amount of your capital

that has been isolated or set aside.

In this situation, whatever is happening to your open positions (trades

that you have invested your money in) only affects whatever amount of

money you have put into that trade

So fir instance ,let’s say you are using a capital of $1000 but you put

only $100 into an open position and set it to long, and the price of the

coin is actually going according to plan and increasing ,the only amount

of money increasing in that trade is just $100 and the remaining $900

remain dormant

Another instance, let’s say you are using a capital of $1000 but you put

only 100 into an open position and set it to short, and the price of the

coin is not going according to plan and increasing ,the only amount of

money decreasing in that trade is just $100 and the remaining $900

remain dormant

If the price of the coin keeps going up and u reach your liquidation

point, only the $100 u put in the trade will be affected(liquidate) while

the remaining $ 900 remains untouched.

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