[00:02] important strategies you can apply in trading and identifying buy and sell points in cryptocurrencies in general, and in other assets as well. So if this interests you, and if you want to profit from futures contracts without engaging in anything illegal, stay with me until the end to
[00:17] benefit. And of course, don't forget to support this video with a like and subscribe to the channel via the subscribe button below. Welcome, my friends! How are you? I hope you're all well. Yes, as you heard, today I'm going to give you one of the most important strategies that you can apply to
[00:30] any trading strategy or to identifying buy and sell points. But first, we'll start by defining what options contracts are and what futures contracts are. In this topic we're discussing, options in general, or what are called "choices" in Arabic,
[00:45] in general, or what are called "choices" in Arabic, are contracts, not underlying assets. They are written contracts are contracts, not underlying assets. They are written contracts that give the trader the option to buy or sell the underlying asset, for example, Bitcoin, at a specific price in the future. For example, if the price today is
[01:00] specific price in the future. For example, if the price today is 60,000, the trader would open a contract.  An option that tells you, "I want to buy Bitcoin at 60,000," and then a month later, this option expires. The person then buys Bitcoin at that price, and they profit if Bitcoin rises, say, to
[01:14] and they profit if Bitcoin rises, say, to 80,000, and they bought at the lower price. If it falls, of course, they are harmed. Generally, options contracts are contracts of choice; there's no obligation involved, but rather a choice. You can act or not from now until the contract expires. On the
[01:30] other hand, we have futures contracts, or what are called futures in English. Futures contracts are contracts written on paper, not real contracts, but contracts that allow traders and
[01:45] speculators to bet on whether the price of a certain currency will rise or fall. This is where the terms " long" (meaning the price will rise) and "short" (meaning the price will fall) come from. This bet
[01:57] is set for a specific date, for example, a date three months after the contract was opened. The three months after the contract was opened. The speculator profits or loses depending on this bet. For example, if Bitcoin is trading today 60. The price opened a Longo contract and made a profit of 70,000
[02:12] 60. The price opened a Longo contract and made a profit of 70,000 because the contract rose. If the price falls, the contract will fall too. Most people in the digital trading space don't work with these exact futures contracts, but rather with what are called perpetual contracts. Perpetual contracts, in
[02:26] called perpetual contracts. Perpetual contracts, in English, are forward contracts that don't have an expiration date. This means they can remain active until you reach your target or until your portfolio is 100% empty. These are the contracts we
[02:40] generally hear about in the trading space, whether for currencies or other whether for currencies or other market assets. But how can we benefit from these contracts without getting our hands dirty in this money-burning engine we're talking about? This is where the
[02:54] issue of analyzing contract expiration dates comes in, on the one hand, and on the other hand, analyzing open positions and liquidation points for these positions. For example, someone has a perpetual contract, meaning a
[03:07] futures contract that doesn't expire. Now, this person has a problem.  He's incredibly overconfident. He opened this contract with a leverager, and this leverager is essentially saying he wants to increase his
[03:20] profit by 20 times whatever it is. So, if Bitcoin, for example, rises in price by 10%, meaning it goes from 60,000 for example, rises in price by 10%, meaning it goes from 60,000 to 66,000, he has effectively made a 20-fold profit. This to 66,000, he has effectively made a 20-fold profit. This 10% doubles the Bitcoin price. But what
[03:36] many people don't know is that this 20x profit also translates to a 20x loss. Of course, to wipe out his wallet, he loses 100%. For example, if Bitcoin drops by
[03:49] 5% in price—just 5%, which we see almost every day in the digital world—if it drops, the leverage ( 20x) multiplied by 5% becomes 100%. So, this is a
[04:01] liquidation point for him. This person who opened a long contract at 60,000, if it drops, opened a long contract at 60,000, if it drops, you need to...  57,000 describes his portfolio. He went to Al-Balushi. Now, how do I benefit from this? How can we benefit from this situation that this
[04:18] person is reaching, which is liquidating his portfolio? Of course, when I talk about a person, I'm not talking about one person, I'm talking about a million people. So, I'm talking about the majority and I'm talking about huge institutions that do this. Also, when we see prices starting to approach liquidation zones,
[04:33] people usually start trying to influence the price. For example, when we approach the liquidation price, which is negative, meaning from 60 to 57,000, when it approaches 57,000, people are interested in maintaining their long
[04:45] contracts and not liquidating them. They try to inject liquidity into the markets to raise the price of the currency or commodity. This turns this currency or commodity. This turns this number into a support zone, and this interest brings
[04:58] number into a support zone, and this interest brings liquidity and raises the price of currencies in the markets. Of course, this happens in the opposite case. If the KWD is at 65 and the price is rising towards 65, then... KWD is at 65 and the price is rising towards 65, then... Look, there's an attempt to resist in the market
[05:13] and sell currencies to bring the price down. Therefore, we see price resistance and a price rebound to the downside. This is one thing, and this usually happens in the markets. Secondly, if we start seeing
[05:25] liquidation in the market, we start seeing liquidity in the market, usually very close to this price. You'll find usually very close to this price. You'll find many stop-loss orders, and these stop-loss orders automatically convert into buy or sell orders for the same asset. So, the accumulation of stop-loss orders also acts as an
[05:40] additional factor that squeezes prices upwards, meaning it squeezes prices upwards, or of course, it squeezes them downwards squeezes prices upwards, or of course, it squeezes them downwards from our perspective. The third factor is from our perspective. The third factor is marketing: media, news, emotions,
[05:54] people's feelings. News will grab your attention. Look what's happening in the liquidity there. On the other hand, people, for example, if we see short squeeze, they enter with euphoria, they rush in so as not to miss the opportunity. You see them running to enter the market. Or, if they see liquidity for long contracts, they panic
[06:11] see liquidity for long contracts, they panic and exit.  The market moves quickly, and these things and exit.  The market moves quickly, and these things naturally involve an additional factor that affects prices within the range we're discussing. Now, let's see how we can take this
[06:24] to your strategy. For example, let's say the price you want is 61,000/163. You're example, let's say the price you want is 61,000/163. You're identifying support and resistance points, for example, on the chart
[06:36] itself. The resistance is around $62,000, and the support is around $ 58,900/$59,000. This is the general overview from a technical perspective on the chart itself. However, you need to add more information to strengthen your theories. One thing you
[06:52] can do is go to CoinGlass.com, which is a free website, and look at the data available about contracts and their liquidation points on the platforms.
[07:04] Generally, you can search for action, hit, or lotion maps. You'll see that there's a lot of information you can generate just by looking at this chart.  The current price of Bitcoin is the spot price.
[07:17] current price of Bitcoin is the spot price. Secondly, the points where the liquidity is for short contracts or color contracts are located: any point above the spot price is the liquidity point for short contracts, and any point liquidity point for short contracts, and any point below the spot price is the liquidity point for long contracts. This is how
[07:30] someone is betting that the price will go up, and if the price goes down, then the short position is cleared, and vice versa. In the
[07:46] liquidity points at the prices. If the color starts to turn yellow, then there is a very high accumulation of contracts. From this perspective, I know that at the exact price of 6163, there is a very high accumulation of
[07:59] 6163, there is a very high accumulation of short contracts because the price above the current spot price, which will be triggered if we reach this price, is a point that is considered a resistance point. If I am trading, for example, at the price of 6160, I will take my profit at that
[08:14] price of 6160, I will take my profit at that point. Secondly, in order for the price to continue reaching $62000, we need to close  From above, I record this on the chart and continue with the strategy. If I'm looking for buying points in Bitcoin and I don't know which
[08:29] point, for example, the closest buying point according to this chart is 59,000. I'm looking for points for day trading, meaning I'm not making an investment here, just day trading. So, I go and look at where there's the largest accumulation of long positions, for example,
[08:43] and see what price it's at. For example, here I see a very high accumulation of long positions at 60,480. There's a very large accumulation of long positions there, so we'll see support for the price because the whales will try to inject liquidity to raise the
[08:57] price so they don't lose $116 million. So, for me, I use this as the first entry point for day trading, for example, at 60,500,
[09:09] which is in this range. And if we see additional positions continuously, I don't panic. I leave this chart because we've entered the bull and bear zone where there's a high level of competition, and
[09:22] I move to the trend line.  On the same chart, technically speaking, the very high point with high volume at prices, which in this example is around $59,000, is the second entry point for the speculative trade I'm looking for.
[09:36] Practically speaking, I've deduced where there will be high interest in maintaining prices above or below the spot price at that moment. The third thing I can
[09:48] deduce from this chart is people's feelings. For example, from this chart, I see a great deal of arrogance and excessive confidence among people that there will be a decline. Therefore, people are opening short that there will be a decline. Therefore, people are opening short positions at prices with very high leverage
[10:03] because the price of the underlying asset is very close to the spot price. Since the price of the underlying asset is close to the spot price, this tells me that many people currently have excessive leverage, and
[10:15] this indicates to me that speculative trading is not beneficial at such times. So yes, I started with support and resistance points, things like what I mentioned to you. We translate this information into trades, but it was  I need to start from the end. It's one of the things people do when they see very high COO points, very close to the
[10:32] spot price. For me, those are moments not for speculation. I sit on the sidelines because that area has high volatility and doesn't follow the principles we know. This is an additional point that you can also benefit from when you look at such contracts. Options contracts also have the same
[10:47] thing; they expire in an instant. Options contracts expire after five minutes, ten minutes, or a quarter of an hour. There are small contracts that expire very quickly, and there are contracts that accumulate over a longer period. You'll see that the most volatile days are
[11:01] Fridays, and usually the last Friday of the month you're trading in has the largest accumulation of expiring options contracts. You'll also see that the same thing applies: bulls will try to raise the price of the commodity to profit so their options can win by the largest possible percentage, and bears will
[11:17] try to lower the price of the commodity to profit their options by the largest possible percentage.  It's possible, and I hope that after applying the things you learned in this video, you'll increase the success rate of your trades, whether they're speculative or point-buying. If you're looking to invest and don't know where to invest, these
[11:34] things might benefit you. They'll explain why there are price fluctuations and why things are n't working logically. All of this will hopefully benefit you in the future. If you found this helpful, support me with a like and subscribe to the channel (subscribe below). Thank you so much for your time, and