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[00:02] welcome to a new video on the Easy Money channel. Today I'm bringing you a new video about stuff that I'm going to add to this playlist. Anything you do n't understand in this video is probably already explained in this
[00:15] playlist that I'll leave up there on the right. So if you don't know how to buy cryptocurrencies, how to fund or add money to stuff, or recommend you take a look because it's probably already explained in
[00:30] move a little further with this platform and I'm going to explain what futures are because you asked me about it in the last video where I explained how we can trade with the traditional train on stuff. Now it's time for futures.
[00:44] Obviously, the first thing we need to trade futures on stuff is to to trade futures on stuff is to have an account. That's why I'm leaving a referral link below in the description and in the comments so you can create an
[00:57] account and you'll get a 10% discount on commissions. This will be very recommend you do it through a link that has this discount. Not from one where they don't have it here. We're inside the platform, and
[01:12] we'll find the futures in this tab where it says "derivatives." We'll click here where it says " USB futures." We click, and it will bring us to what we're seeing on the screen. Before I start explaining
[01:24] what each thing is, I'm going to explain what futures are and how they differ from buying cryptocurrency in the traditional way, as we do in the " trading with futures, what we're doing is trading
[01:39] futures contracts. In simple terms, we bet that the price will go up or down. When we think the price will go up, we put in a buy option, that is, a long position. We go long. If we think the price will go
[01:53] down, what we do is put in a sell option, that is, a short position. We bet that the price will fall in order to make a profit. At no point do we own the asset itself, like, for example, when we buy
[02:07] Bitcoin in a trade. There, we directly buy Bitcoin Bitcoin goes down, we lose, but if the price of Bitcoin goes up, we win. It's that simple. In this case, we make a contract. Whether the price will go up or
[02:23] down in the future, we can profit from both options. Vainas contracts are perpetual, meaning they do n't have an expiration date. We can leave the position open, long or short, for as long as we
[02:36] want. But be very careful with this because every so often we'll have to pay a financing cost, and if we don't take this into account, it can lead to losses instead of gains for many.
[02:50] When you enter the Vaina New Tours section, you'll likely be asked to create a Bailén Futures account. There, you'll be asked to enter a code for a discount. You'll need to open
[03:02] an account, which is as easy as entering a code and completing a simple survey. If you don't have the code, I'll leave it below in the description or in the comments so you can get the
[03:14] discount on commissions. Another difference between futures and traditional trading is that futures charge lower commissions than, for example, buying or selling cryptocurrencies. Here, we trade with
[03:27] contracts, and the commissions are lower. If we're not interested in buying a cryptocurrency to hold it long-term or to send it to another platform, and we simply want to take advantage of a rising or falling price, it's
[03:40] better to trade futures than to buy the cryptocurrency. Our choice will depend on our objective. Now, let's explain the panel we 're seeing here in a simple way. On this side,
[03:53] we can see the Bitcoin/US/TT pairs, that is, Bitcoin in dollars, and we can see the chart of Bitcoin in dollars, the prices, the dates, and everything else. If we click here or just hover over it, we can search for the one we want, for example, this one,
[04:08] and we'll see what the HV SDT Perpetual says. So, in this case, if we clicked here, we would be on the Ether (YUM) futures and not the Bitcoin futures. If we click there, the chart will change and show us the deterioration. We can
[04:22] tell because the chart is different, and the price has also changed. Then, here to the right of the pair, we'll click here where it says "crossed," and we'll have two options: "crossed" and " isolated." This is useful if we are
[04:35] beginners and are just practicing. For futures, we're going to click here where it says "isolated." These two options are explained below. Crossed mode means that all crossed positions of the same margin asset
[04:49] crossed positions of the same margin asset share the same asset balance. In case of liquidation, you could lose your entire asset margin balance and any open positions related to that asset.
[05:01] So, the losses won't be cut off when a position is liquidated (reaching zero), but will continue to be subtracted from the other open positions and also from your balance here. This is very
[05:16] dangerous if you don't know how to trade or if it's your first time. Isolated mode is always better, as it allows you to manage the risk of each individual position by assigning a limited amount of margin to each. So,
[05:28] if the margin ratio of any position reaches 100%, the position is liquidated, and that's it. That position is closed, liquidated, and that's it. You lose what you risked in that position, not all the money you
[05:41] have in your futures account. Keep in mind that if a position is liquidated (lost completely), you'll be charged more commissions than if you closed it yourself. So, try to avoid... Instead of liquidating those trades, you risk
[05:53] losing 100%. Instead, try to close them early or add more money to keep them open. We can confirm in isolation, and then here on the right where it says 20x, we're going to lower it to x, meaning
[06:10] 1. This is leverage. If we increase it, If we increase it, for example, to 10x, we're amplifying both the profits and the losses by 10. This means we'll be
[06:24] able to make larger profits, but we'll have a much harder time dealing with losses. Any small movement will liquidate the position, and we'll lose 100%. If we take this to
[06:37] larger numbers, we see that it's very, very risky. We can even take it up to risky. We can even take it up to 100x in ether and smoke, up to 125x in Bitcoin, and any small movement in the opposite direction to where
[06:50] trade will liquidate the position, I recommend that if it's your first time and you don't know how to trade futures, always start with one. We can confirm now. To have it isolated, and then on
[07:05] the right we see the mark, which is the last market price this asset traded at: 1650. To the right of these numbers, we can see the financing cost that is charged every eight hours to people, investors,
[07:19] traders who have open positions. That is, if this counter reaches zero and you have an open position, you will have to pay this you will have to pay this financing cost, which we see is 0.451.
[07:33] Although it is very little, if we have several positions, or if we are highly leveraged, or time, all the small percentages can lead to a loss when perhaps you thought you were making a profit.
[07:46] So we have two options: either we always close the positions before this clock reaches zero (remember, the clock runs every eight hours, charged three times a day, 3 times 8, 24 hours a day), or we can
[08:00] learn how these commissions are charged and how they are paid, because sometimes they are charged and sometimes they are paid. I explained it very briefly, but this is for another video because it is something more complex. It's complex when this
[08:12] financing cost is positive; those with long ( buy) positions will pass this financing cost on to those with short (sell) positions. Conversely, when this financing cost
[08:27] is negative, those with short (sell) positions will pass this percentage on to those with long (buy) positions. Obviously, this financing cost depends on each pair. If we go here
[08:40] where it says "information" and enter " real-time financing rate," we'll example, here with USB-T Perpetual, we see it's 0.0459. This is in real time, and here's the countdown to show how much time is left before
[08:56] this rate is charged. If we go down here, we see the rate for LIT with US TTT, and it's we see the rate for LIT with US TTT, and it's 0.0194. Some pairs don't charge at all, right to "financing rate history," we can see, for example, the rate for
[09:10] BIT with US TTT and see the rates charged in know how these financing percentages and other factors work, I recommend that you close your positions. Before the little clock reaches
[09:26] zero, once it starts counting down again, you reopen the positions. I know that repeating positions many times and not knowing what it is still... well, a position is when we are long, or we
[09:39] are betting on whether the price will go up or down. Right now, we don't have any positions because we haven't made any trades. Here on the right, and we see below, it says "zero positions." Don't forget to tell you what those
[09:51] financing rates are for. It's so that the price of the price of futures contracts fluctuates according to the price of the original asset in the spot market, that is, in
[10:03] traditional trading. This way, as long as one party is paid and another is charged, the price of the contracts will continue to be built up in relation to the price of traditional trading. Okay, now let's move on to placing an order in futures
[10:15] to see how they work. The first thing we have to do is add money. We'll see here that we have eight dollars, 77, and 78, and a small arrow. If we already have the money in what would be the spot wallet, we'll
[10:29] If we don't have any money in our balance yet, I recommend... Go check out above so you know how to add money to the platform. By from the spot wallet to something like futures. We see we have one with 74, and
[10:45] if we set it to 100%, we can confirm that they'll add another 74 here. But we don't really need to because we have eight with 82, which will help us demonstrate how orders work here:
[10:58] a limit order or a market order. That's explained in the playlist again. If you don't know the difference, you'll find it there. Basically, with a limit order, we trade at a fixed price, and with a market order, we trade at the
[11:12] current price at which we place the order. A small difference between limit and market orders is that limit orders end up paying slightly lower commissions. We'll explain this in more detail in another video because, in the long run, with
[11:24] many trades, it can be profitable. Limit orders are often traded instead of market orders. While market orders are faster, limit orders usually pay lower commissions. So, let's trade a limit order
[11:38] so I can show you how it works. Something you need to understand is that if I place a long buy order at a price higher than the current price, say higher than 1658.47, it will be
[11:50] executed immediately. The same happens with a short order. So, if we're going to place a buy order, make sure the price we put here is lower than the current price. If we're going to
[12:04] place a sell order, make sure the price we put here is Otherwise, the orders will be executed instantly, just like in the market. Then, down here on the right, we have "Take Profit" and "Stop
[12:20] Loss." By clicking on them, we can place a take profit and a stop loss before sending the trade to the market. What does this mean? "Take profit" means taking profits, and "Stop Loss" means cutting losses. For example, let's say I
[12:33] think the price is going to drop below 1659. So, I'm going to open a short position to make money. I can put 0.01 here at 1657.50, which is roughly $ 1.65. We can see it. Here on this side, or we can
[12:51] directly move this little button down here, and we'll see what percentage of our capital we want to move. For example, with 50 percent, we're moving 3.31, whereas with 100 percent, we're moving 8.28. We're going to
[13:05] set a take profit to be executed when it reaches 1600 when it reaches 1600 USB and a stop loss in case it goes up to 1670 USB. Since we're selling, or shorting, and the price is going to fall, the take
[13:21] profit will be at a lower price and the stop loss will be the numbers would be reversed, with the highest price up and the lowest price down, like when buying a normal asset. To send the
[13:34] press here where it says "sell." We're going to send this order with, for example, 6.63 dollars. As we can see here, that's 78 percent of our capital. If, for example, we were to change the 1x here to 1x10,
[13:50] we'll see that we're... Adjusting the leverage, we'll see that, for example, with $6 we'll be moving larger amounts of Therion. That's why it's not profitable to do this, because if the price goes against
[14:03] our expectations, even a slight movement can wipe out the $6. So, remember to always keep the leverage at 1. We were talking, we see that the price changed, and we'll set it
[14:17] changed, and we'll set it to 1651 with 50 and place a short sell order. Here we'll see a red line on the chart, and we see the limit order. Why does this seem different to me, and perhaps not to you who are just starting out?
[14:32] Instead of using the original chart, we'll use the TradingView chart, which shows us our go down here, we see 0 positions and one open order. We see that
[14:47] this file is a perpetual limit order, a sell order at the price, the amount of Therion, the amount filled, and so on. If we see that the price is falling and won't reach this point, why... The order opens, we can
[15:02] cancel it here. If we forget to set the stop loss and take profit, or if we want to set them now, we can also click on "view" and modify them here. Then, by clicking "confirm," we have the take profit and stop loss
[15:15] configured. Now we can see that the price reached the limit order we placed, so we entered a short position. If we go to each position,
[15:28] we'll see new information: we have the open position on the symbol we chose, the size, and the red indicates we're shorting. The entry price is the price we entered at, the current mark price, and the
[15:41] liquidation price, which means that if the asset price reaches this everything we invested. We see that we practically need lose. That is, if it goes up 100 percent, we lose the six dollars. With
[15:56] 61, it's very unlikely that this will happen, but if we use leverage, the movement needs to be much smaller, and we lose. So, let's not do it. The margin ratio and the risk we run, the lower the margin, the better. The
[16:08] lower the number, the less risk we run in liquidating our position. Here we see the margin wallet; if we add more money, we can so on. On the right, we can see the NLP (Net Loss/Non-Limitation). This shows two things: first, what
[16:24] losing. If this is a negative number and in red, it means we are losing that amount. If it is green and positive, it means we are gaining, in this case, three cents. On the right, expressed as a percentage,
[16:39] three cents represents 0.40 of the 6.61 we set. Also on the right, if we want to close positions, we can close the markets, that is, at the current price or the limit. Remember that we
[16:53] set a stop loss and a take profit, and we can see them here in open orders. If they we set, this position will be closed. And remember, a position is one thing, and an order is another. An order is what we send to the market to enter
[17:09] a position, we have an open position, meaning we are already trading. If we reach... The profit we want, we can enter "market" and directly take the profit or
[17:22] cut the loss at the current price. We enter "market" and see that it closed. If we go to transaction history, we can see the commission they charged us this last operation, which is a very small amount. BNB didn't charge it
[17:34] because that way we pay fewer commissions. The net profit (NPL) achieved means we earned The net profit (NPL) achieved means we earned two and a half cents of USB on this operation. Before that, there was the commission they charged us for sending the
[17:48] market order to go short. We see that here they charged us less commission than above because, very simply, here I placed a limit order, and above I closed it at market, meaning they charged me double the commission
[18:02] for doing it instantly. That's why I always tell you to use the link or in the video description because, besides using these tricks to pay less commission, with that link you'll be paying 10% less. If you do
[18:17] you'll be saving a lot of money and you'll earn more over time. This is a bit silly, what I'm telling you is a lot of calculation. There are many things to time as we understand more and more about the channel, and all of that
[18:33] together will allow us to make money over time. So, I'm taking advantage of the discount I've left below in the description. Well, there's not much more to it than that. I don't want to overwhelm you with what a
[18:45] futures contract is. It's actually quite simple in terms of the basics. We bet that the price will go up or we bet that the price will go down, as long as you do it in isolation and by yourself. There's not
[18:58] a very big risk. We'll gradually incorporate more into futures with strategies and so on to make trading here more profitable. Remember, if you trade futures, you're only betting that the price will go up or down; you can't
[19:12] withdraw cryptocurrencies or anything like that, and keeping the positions open doesn't end up being profitable because of the financing costs they charge us. Every eight hours, if you want to maintain a crypto position for
[19:24] one or two years, I recommend you go to the trade section, which you can find there in I hope you liked the video. If so, remember to leave a like, a social networks using the button next to the like and dislike buttons. To
[19:38] the right, I've included the Instagram link for the " invest in all the instruments of the Argentine stock market. As always, I hope you have an excellent day. Goodbye!