Futures drain: Strategies for successful trade in cryptocurrency
The world of cryptocurrency trading can be volatile and unpredictable. With the appearance of cryptocurrencies such as Bitcoin, Ethereum and others, the market has always become overcrowded and more complex. An aspect of this market, which is often overlooked, is the future process. In this article, we will examine the importance of the Futures process in cryptocurrency trade and provide strategies for successful dealers to control this critical component of your investment strategy.
What is futures leakage?
The leakage of the future refers to the point where a traded contract reaches its expiration date. At this moment, the basic asset (in this case cryptocurrency) is no longer traded on the stock exchange, where it was initially listed. This can have a significant impact on dealers, because the future can obtain potential levers and profits.
Why is it important to drain the futures in cryptocurrency trade?
Futures Drain can create opportunities for dealers to use price movements before being fully performed. For example, if a dealer bought a cryptocurrency contract with 10,000 units per unit, but the market price falls to 8,500 units before expiring, he could sell his contract and recover some of the initial investments. If a dealer sells a futures contract with an expiration date in the future, it can be registered as a date and can block profits.
Strategies for a successful drainage trade
While trading can be a high risk strategy, there are several strategies with which successful dealers sail in this critical component of your investment strategy. Some important strategies must be considered here:
- Position size : The size of the position refers to the value of the capital that has been assigned to each trade or contract. A good position allows more flexibility and reduces the risk of loss. However, this also means that a larger part of your capital is at stake. Therefore, configure only a reasonable part of the entire portfolio.
- Risk management
: Risk management refers to the process of identifying potential risks associated with trade in departures and taking measures to reduce measures. This may include security strategies, stop-bloss commands or other techniques that help limit losses.
- Technical analysis : Technical analysis is the examination of market price movements and models. Analyzing diagrams and trends, retailers can get information about potential opportunities and risks of the futures process.
- Sent of market : The market feelings refer to the general tone or the attitude of the market compared to a certain asset. Dealers who are aware of the mood of the market can be used to make the advantage if they decide if they should be traded for expiration.
- Diversification : Diversification is the practice of spreading investments on various markets and active. By diversifying the portfolio, you reduce your commitment in a certain asset or a specific market, which makes it more difficult for losses.
Popular trading strategies for futures drain
Here are some popular commercial strategies that can be used in relation to the futures process:
- The trend follows
: The trend follows to identify the direction of a trend and position yourself accordingly. This strategy can be applied to both long and short companies.
- Skalping : Scalping includes taking several small trades during the day to benefit from small price movements. This strategy requires a high degree of market knowledge and fast response times.
- News based on news : News based trade includes the use of news events as a trigger for the input or production of a trade. This can be applied to both long and short companies.
