AI Summary
This video provides a comprehensive course on futures trading, focusing on capital preservation and risk management. The instructor explains key concepts like leverage, cross vs. isolated margin, and introduces advanced order types like trailing stop to help traders avoid common pitfalls.
Chapters
The video presents a complete futures trading course for both beginners and experienced traders, emphasizing that 70% of success is capital preservation.
The instructor clarifies he is not a religious authority and cannot issue a fatwa on whether futures trading is halal or haram; viewers should consult Islamic scholars.
Binance offers spot and futures trading; futures is riskier and requires careful capital management.
Beginners should create a Binance account, buy crypto via P2P, and transfer funds from spot wallet to futures wallet.
Losses in futures only affect the futures wallet balance, not the spot wallet.
Market orders execute at current price; long for upward movement, short for downward.
Cross margin uses entire wallet balance to avoid liquidation, while isolated margin limits loss to the trade amount.
Leverage multiplies trade size; e.g., 5x leverage on $10 makes a $50 trade. Higher leverage increases both profit and liquidation risk.
Maximum 5x leverage is advised; higher leverage is risky for health and pocket.
Use only 25% of total capital per trade to keep liquidation far away.
A trailing stop buy order activates when price rises a set percentage from a low, ensuring entry after a pullback.
The instructor has a separate video showing how to turn a $300 loss into a $30 profit.
Futures trading requires disciplined capital management, low leverage, and smart order types like trailing stops to preserve capital and capture trends. Beginners should focus on risk management before seeking profits.
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Mentioned in this Video
Tutorial Checklist
Study Flashcards (6)
What percentage of trading success is attributed to capital preservation according to the video?
easy
Click to reveal answer
What percentage of trading success is attributed to capital preservation according to the video?
70%
01:00
What is the recommended maximum leverage for futures trading?
easy
Click to reveal answer
What is the recommended maximum leverage for futures trading?
5x
12:17
What percentage of total capital should be used per trade?
easy
Click to reveal answer
What percentage of total capital should be used per trade?
25%
13:38
What is the difference between cross and isolated margin?
medium
Click to reveal answer
What is the difference between cross and isolated margin?
Cross margin uses the entire wallet balance to avoid liquidation, while isolated margin limits loss to the trade amount only.
07:49
How does a trailing stop buy order work?
medium
Click to reveal answer
How does a trailing stop buy order work?
It activates when the price rises a set percentage from a low, ensuring entry after a pullback.
18:04
What is the liquidation price for a $50 trade with 5x leverage and 25% usage?
hard
Click to reveal answer
What is the liquidation price for a $50 trade with 5x leverage and 25% usage?
The liquidation price is far away; in the example, Ethereum would need to drop to $604.
16:40
💡 Key Takeaways
Capital Preservation is Key
Stresses that 70% of trading success is about saving capital, not making profits.
01:00Cross vs Isolated Margin
Clear explanation of how each margin type affects liquidation risk.
07:49Trailing Stop for Entry
Innovative use of trailing stop to catch bottoms and tops after pullback.
18:04Full Transcript
[00:01] demand, I am going to present the complete course of future trading for you in today's video. Well, remember one thing here that this course is also for those who already know future trading. Because what generally comes to our mind
[00:16] especially in future trading? What we do is, brother, there is some coin, whatever amount of money we have. Yes, we want this, this desire is coming in our mind and heart that brother, convert $10 into $. So what is the outcome? Does our 10 also go or is it our wish that brother, I have
[00:30] $1 lying there, I somehow want to make 100 and leave it, I don't know, what happens is that your 100 also goes away, okay, so in today's video, I will tell you about future trade properly, you all know, many people know, but those who are
[00:43] also tell you about future trades and after that how is a proper trade placed, how is a proper what is OCO, what is trailing stop, in what way is your trade managed, in which I have already said this many times that profit making in market
[01:00] is 30%. The profit you are making is 30%. But what is 70%, that you save your capital. 70% of the focus is on saving your capital. So today I will tell you about future trading and teach you about it. After that, in the strategies that I will
[01:15] share with you, you will save maximum of your capital and whatever your trade is, you will always close it in profit. Ok it's done. Well, now some thoughts might be coming to your mind, perhaps some people might be
[01:29] wondering whether future trade is halal or haram. And after that I also made a video on its comparison. So brother, let me tell you here that I am not a Mufti that I can give a fatwa whether this is Halal or Haram. My purpose is to educate you people regarding this
[01:41] because it was your demand. Ok? Have to educate. I cannot give the rest of the fatwa. You
[01:53] can contact any of your Islamic scholars. You can ask any of your Islamic scholars what is the video that I had made about Halal and Haram, even the Ulema were not that well educated according to related to crypto. Still you
[02:05] can contact any Islamic scholar. You can get more good advice from him. Ok? Yes, if you people ask me then I will say that brother, I cannot take a fatwa. But futures trading is much riskier than spot trading. If you trade in a nonsensical manner, then
[02:19] today we will learn to trade in a sensible manner and not in a nonsensical manner. first time on the channel, then subscribe and turn on the bell notification so that important videos keep reaching you from time to time. Let's go to the mobile
[02:34] to time. Let's go to the mobile screen. seeing an interface of my Binance here. I have tried a little bit to make it above the tab so that you people can see the interface bigger here. Okay, now understand the matter of
[02:48] trading, generally you people know it, I know that many third parties are that there are two types of trading in Binance. There are others too but leave them aside for now, what is margin? What are options? That is something for us to understand
[03:01] and there is no need to understand it. Ok? What are we going to understand? Futures is spot, one is future. Insha Allah, the spot course will also be launched in a few days. First understand the future carefully. Well, those who are more beginners should first
[03:15] create their account on Binance. If you are looking at Facebook, watching on YouTube then you will see the registration link in the description and if you are watching on TikTok then clicking on it, you have to first create your account. On
[03:29] what? Binance Pay. Ok? After that, whenever you buy dollars with P2B to trade futures, they come into your funding account. When you buy from someone on your on-chain deposit, it comes
[03:41] in your spot wallet and for example, here I will first transfer it to you so that you can understand, I come here and first transfer it back, when you take on-chain deposit from anyone, then
[03:53] where is the money lying, the money is lying in your spot wallet, okay, now first of all you have to shift this money in your future wallet, in a very famous time I had made a meme,
[04:11] he had asked a question that if we incur a loss in the future, will our spot balance be affected ? So that is not the case at all. talking to beginners. Ok? Meaning that the money we invest in our futures will be
[04:25] Meaning that the money we invest in our futures will be entertained along with the futures account. If I suffer a loss in the future, nothing will happen to my future money. If I have made a profit in the future, then the
[04:38] profit has been made on the basis of future money. It is not that brother, I have made 1% profit, so there was $1 lakh inside my spot. So I should have a profit of $1 lakh in the future. It's not like that.
[04:52] Your profit and loss depends on the amount of money you have invested in the future. Ok? Listen with good examples. Look, I have $110 lying around right here. I transfer it from here.
[05:05] You can see this transfer button here. Look, this is USDT. This is the transfer button. Simply I will click on the transfer button. Above you guys have to is someone else here, then you can click here and select Spot Wallet. Ok?
[05:18] Below you have to keep USD M futures. Ok? This is one of the USD Coin Futures. One is USD M futures. You guys have to hold USD M futures. Ok? Can't see it. Click on the arrow. Select it from here.
[05:31] Which is the currency coin? I click on the coin. Look USDT was 110, I don't want to take 110 for 110. I want to leave with $50. So you can take it. It is not necessary that you people take the full amount. Ok? So brother,
[05:44] where are my other half lying? In the future. Half of mine are lying in the spot. Now I will come here. seeing different trade sections. This trade section here Futures is visible right next to it. You guys click on futures.
[05:58] Clicked on futures. If you look here, an interface will open in front of you. It is similar to Spot. But there is a slight difference in it. Here you is visible. A cross is visible. If you click on the cross, an isolated image will
[06:11] appear. A leverage will appear in front of the isolated. Maximum people will After that I will teach you trade management. I will teach you different types of trading in which we keep our capital safe. Whatever happens, our
[06:27] own money does not go anywhere. Yes, there will be profit. If there is a loss, money will be deducted from the profit only. The If there is a loss, money will be deducted from the profit only. The first understand the basics here. After that I will take you all to a slightly advanced level.
[06:41] Understand these things here first. What is this? First of all look here, this is the market. Market means if I place any order then it will be bought or sold only above the market price. Ok? After that, you will see one
[06:55] long and one short here. What is this thing? Here I come to its charts. After coming to the charts, each candle here is a 15-minute candle. So each candle is representing 15 minutes. The market is currently
[07:10] moving here. If I feel that the market is there, I can make it a little bigger from here. Ok? If I think the market has to go up from here. If the market has to go above the current price then I will always take a long trade. I will take it and show it to you. If there is any
[07:24] problem, understand it first. And if you guys feel that no brother, the market has to guys feel that no brother, the market has to come down from this point, then I will always take the sell trade. Ok? It is also called short and also called sale. We also say long
[07:37] to the other person and also say bye. Ok? It's the same thing. Ok it's done. Now let's come down here. These buttons are visible. You can click on any one. Out of these, I click on Open. Now you have come here. Now after coming here,
[07:49] understand one more thing. Here you can see a cross button. This is of the cross. Ok? [nasal sound] you have two options here. One is cross, one is isolated. Now you all have to listen to me very carefully. If we place a
[08:04] cross here. What do you keep? Cross and trade cross here. What do you keep? Cross and trade I have $50. We place trades of 50% 25%. The cross is placed. 25% off trades. Now what is 25% of 50? $ ok? A
[08:21] Now what is 25% of 50? $ ok? A trade of $ was placed. There was a loss. There was a loss of $. Your trade will not close and you will lose $20. The trade will not close. I turned 30. Losses are increasing. It is happening.
[08:41] Ok? And if you people are thinking that friend, where I am getting liquidated, before my wallet gets washed, I feel that once my wallet gets washed, the once my wallet gets washed, the market will go up again. So
[08:54] ? I also sometimes I transferred 50 more. My total balance became 100 but the trade is of
[09:06] $1. So that means it will take some more time to get liquidated. Ok? This means that if you do not place a stop loss in case of loss, then it goes to the end and takes away your money. Ok? I
[09:21] used my words with caution. And what is the second option? The second option is to click on the cross here. Isolated. Within Isolated, you close your trade at a loss of the same dollar amount you placed the trade for. Your outstanding balance is not
[09:35] touched. Ok? Now you people might be thinking that then it is okay to be isolated, right? Both have their own What happens in isolate? Your What happens in the cross? If you keep the margin a little
[09:48] your liquidation becomes much less likely. I will show you all these things. Well, I am explaining it verbally. Okay, what's another thing that happens here ? Another thing here is leverage. Now look here it is 20x. I
[10:01] click on it. So this is showing a lot of axes. 1x 2x 3x Look, this is showing up to 150x. Now what does this axis mean ? Understand it in simple words. You have ₹10
[10:13] ? Understand it in simple words. You have ₹10 , ₹10 or $10 and you guys , ₹10 or $10 and you guys take 2x leverage. If you borrow 2x, take 2x leverage. If you borrow 2x, your trade would be $10, with 2x
[10:26] leverage, and your trade would be worth $20. It will cost double, it will cost twice the amount of money. You seem to be having fun, right ? I will also tell you its disadvantages later. Listen to the fun first. Now you guys only have $10. But you people took leverage of 5x. The amount of your trade will
[10:41] appear to be five times bigger than the actual amount for which you have taken the trade. Okay, now you have $10 and you have taken leverage of 100, so you have $10 but your trade is being placed with an amount 100 times larger.
[10:57] Meaning, there will be profit, neither with the total amount of money you have invested nor with the profit that you are getting with the amount 100 times bigger than that, How nice it sounds. Yes, it happens like this. Ok? But vice versa,
[11:10] you have to see its second scenario also, that is, loss also, then you people have to see it in the same way and liquidation also closes, what is that, I will explain and teach you easily later, the basic concept is borrowing of leverage,
[11:23] basic concept is borrowing of leverage, how many times x, x means times 5x, how many times x, x means times 5x, five times 10x, 10 times 100x, 100 times, ok, five times 10x, 10 times 100x, 100 times, ok, I borrowed so many times from him, the
[11:35] exchange people are your in-laws, they have given you a daughter. There also charge you fees and this causes some loss. Not a little, but a lot, I will tell you what that is when I take the trade next. You
[11:49] guys understood things. These are the things that are important. Now let us come to our trade section. First I will teach you how to place a simple trade. Then I will teach you guys how to make some good trades. Then I will tell you guys the expert level which I
[12:02] use. Other people use it. Everybody uses it. Ok? But the general public probably does not have much idea about this thing, then you people will understand it. You guys don't have to worry. Ok? Well now the simplest way to place a trade. But
[12:17] even in simple terms, we have to use a little bit of intelligence here. Whom? To the cross. Who did you use? Cross leverage maximum. Maximum you people are very crazy about the future. You people have to use your worm to the maximum.
[12:30] use your worm to the maximum. Those five. Ok? Meaning that if you take a loan with more than 5x leverage, then it is a loss for your health as well as your pocket. Ok? So here I am telling you about 5x maximum worm. Ok?
[12:42] telling you about 5x maximum worm. Ok? Cross 5x max if not 2x 3x inf. After that, look at the limit here, there is a limit. What does limit mean? Let me tell that to you guys. Now here limit means enter the price on
[12:54] which limit is to be imposed. I asked, what is the price here, brother? At this time Ethereum is at 22. For how much? If it comes at 322 then how much will my long market has to go up from here. So what should I do? I will place this order open
[13:09] as to what I think the market will do from here ? Have to go up. Ok. Well, what limit am I setting? 32. Don't worry. Have started placing orders. The market has suddenly gone up. If the order is not placed then you people remove the limit and
[13:24] start trading. No, such things should not be done. The market comes and comes back. Relax. No money is running away. The world has not ended. A little encouragement there. Well, now the most important thing that you people have to
[13:38] keep in mind here is how much money do you have, brother? I have $50 lying around. So should I place a $50 trade? There are nonsense people who place trades with $50 and a full portfolio. But the money has to be kept. Why keep the money
[13:51] ? Let me tell you the reason that it takes away your liquidation value. How? Here I want to trade with 25% of the total amount.
[14:04] When I trade with 25% of the 25 amount, look down here where my account will be washed out if I go long. Why? That when you trade with 25% you have taken the trade with $1. The remaining $38 will be left in your margin. You can tolerate your loss a little bit
[14:19] if the market goes down a little. Ok? Up to $38 of margin is left behind and liquidation is a long way off. What does liquidation mean? That price at which your account wallet balance becomes
[14:33] pure and fishy. Ok? That too is saved by applying stop loss. I will tell you how it feels. Ok? So maximum trade has to be taken from 25%. Look, the market has blown up. What should I do now? I should be in a hurry and say, oh no, this injustice has been done. The market slipped out of my hands. Let
[14:45] me remove the limit here and place a market. I will never do it. I will click and leave it on the long side. Now you people noticed one thing. I'll come here inside the order book. The order has been placed here. Here you guys see
[14:57] that I had $1 for the trade. But how many dollar shows are there? $61. Why brother? I have placed a trade of $2. You guys had leverage of $61 5x. Ok ? So took leverage of 5x. That left you with $61. Now your profit loss will be $61.
[15:14] Ok? Now let's come to the market, obviously it will take some time for the limit order to be executed and the video to be made. So, in the next scene that I will explain to you, I will also explain liquidation to you within that scene.
[15:26] Here I understood the limit. If I felt that the market was going to go down from here, I would have placed a short order above that limit. This one. For example, if I feel that the market has to come down from 3250, then I will come to 3250 and from here
[15:42] I will open a short order at 25%. First I have opened the long. Then I market is going to come down from there, pull back , come back. Ok let's close. Now Click here. After the limit comes the market. Market variant means earlier I had
[15:58] market. Market variant means earlier I had placed a limit order and it was set below my order will not be hit. But now the meaning of market is that the buy will be done only above the current market price. Okay, come here and do 25%.
[16:12] Just to explain to you, I am going long above the current price. You people do So here my order came in position instead of open order. Look, right here I can see my profit, loss etc. everything. Ok
[16:26] ? Okay, now let me tell you why I used cross here? I why I used cross here? I traded with 25% total and used only leverage with 5x. So look here where did my liquidation price
[16:40] go? My account wallet will not be washed until Ethereum reaches 604. So I threw the liquid away. So brother, by the time Ethereum reaches 604, who knows, Trump's children might also have died. Ok ? So [laughter] did you understand this?
[16:55] So here the cross is to leave high margin and low leverage. This is a wise strategy. Ok? I will close this for now. I came to you guys in another scene here in close. Closed it in profit. Ok? Now let me
[17:08] explain to you another scenario. If I had isolated it right here, it was crossed, come here and clicked on cross isolate, with 25% above the market price, for example, I went long, okay, now look here, how much was mine there,
[17:21] my liquidation area was above 604, you see here, I will be liquidated above $2600, my 12% money, I have invested $1 in 12%, if the price goes to $2600, I will lose my $2 but I will lose 12, but in the scene of the cross, if the
[17:35] market goes to $64, then my entire loss means liquidation will be removed but the entire account will be lost. Liquidation is near in this but only as much will be lost as has been invested. This is the difference between isolate and cross. Did you understand ? Let's close this one as well. Now let me
[17:49] tell you how I place orders. After that there are two important things. How do I place an order? The second order gets traded and incurs a loss. How do I maintain it? Ok? There are two ways.
[18:04] an option here, click on Market. There is an option here called trailing stop. Maximum people use it for selling inside the spot for sale. I always use this to buy. May be I'm wrong. Ok? I
[18:18] also do this to buy it. I also do this for spot sales. In the Spot course that will come, I will tell you in detail how to use it in Spot. Okay, now understand carefully that the market crashed.
[18:31] Bitcoin has come down from ₹15,000 to ₹95,000. Ok? When it was at 98, I said friend, it cannot go down now, place a long order at 98 brother, it came down from 98, I placed a little more
[18:43] order at 97, it came down from 97, it worked at 95, at 94, by the time the pullback was to happen, I was already liquidated, my account, wallet etc. had been washed, by the time the pullback was to happen, what I think, I always think that brother, until the market
[19:00] think that brother, until the market pulls back from any one zone and comes down to 3%, my long order should not be placed. Understand, understand again. Understand in simple words. I think brother Bitcoin has dropped from 105. It's going to 94.
[19:15] Going to 93. It's going to 90. Wherever he goes, he will stop. From there when the market will be up 2%. Then my long order will be placed immediately so that I know that the market has now become stable. Now the momentum of return has started. The market has gone up by 2%.
[19:29] Then my long order will be placed. It should not happen that I say, brother, the market has come till here. Now let me open a long here. As soon as I open long, the market goes down. Your program increased before it was pulled back. So brother, why don't I
[19:41] tell Binance that brother, sit down and think for yourself where the market will make its bottom, after that it is my choice whether it is two or three or four. How much percentage should I tell him? If the market goes up by this much percentage, I will be satisfied that there is a pullback. Otherwise my buy order should
[19:57] not satisfied brother. I know the market will go down further. So hey, I won't mess around. Did you understand this ? We put this inside the trailing stock. How to apply it? Understand this very carefully. I am giving percentage here that 3% market pullback should happen.
[20:14] Okay, act price means which price? Brother, the price is like 3000. Ok? Brother, the price is like 3000. Ok? And 25% when the price goes to ₹000. When its price goes up to ₹3000, listen again. How will this order that I placed be executed
[20:29] How will this order that I placed be executed ? When the price reaches ₹000, this program of mine will become active. My bot will stand up with its eyes open. Yes, it is going down further. Let it go, let it go. As soon as it reached 27, it reached 26, it reached 25, it
[20:45] As soon as it reached 27, it reached 26, it reached 25, it reached 2200. As soon as it goes back above 2200, how many percent? If it goes up by 3%, my long order will be placed. And if it touches 3000 and then goes up by 3%, my long order will be placed again. Meaning, wherever the market
[20:59] pullbacks by 3%, my order will be placed. Well, my order will be activated when Ethereum touches 3000. I can also make it 3100. I can definitely make it 3100 and the situation that I am telling you about, with 3% pullback, should definitely happen at 2600. My
[21:16] order will be placed at Rs 2600 for long. My order will not be placed at Rs 3100. Did you understand this? My bot will become active at Rs 3100. I can definitely call it 3200, that is, if my bot gets activated at 3200 then it will sit at 3200. Wherever the market goes up by 3%,
[21:30] of course it goes up by 3% above 3200, I will place my long order. But as a precaution, one always has to keep in mind that brother, a little bit of what is called sentimental support, 3000 is its sentimental support. So I will put it right there. Understand that
[21:45] you people placed the order. After placing the bet, the market immediately went down and you sat down holding your head. Oh no, you should have waited a little longer. You should have placed the order from here. Oh no friend, you should have put it from here. Looked at the mobile again after 15 minutes. The market plummeted further.
[21:59] Friend, if my order had been placed from here then after a week you would have been thinking that friend, I wish I had bought there, then look how far the market has gone now. Your suffering ends
[22:12] by taking long positions in this manner. Ok? Same short position. I know that Ethereum will crash at 5500. I put this on top of 5500. Ok? Here, instead of this 3100, I wrote 5500 percent, three.
[22:29] When the market goes above 5500, my bot will become active. 5500 has arrived. The market went up further. It went to 5600, went to 5800, went to 6000. After reaching 6000 it came down a little. As soon as it goes down by 3%, my sell order will be opened saying that brother, now the market is coming down.
[22:43] Ok? So you people must also be thinking the same thing, friend, that top was formed, if we had opened the sell from there, then today after a week see how low the market is, we are not able to catch that top, then how is the top caught, the top is always caught in this way, the bottom is always caught in this way,
[22:57] but in this also you people have to put stop loss compulsorily as soon as your order is triggered, then ok it depends on you how much risk you can take, brother, can you tolerate 5% loss, 10%, 50% or if you have a sharp mind like me and no
[23:12] wisdom then do not put stop loss. Ok ? So it depends on you. This is how I place trades. Ok? Try buying it here and opening it long. You will see everything below and it will tell you where the market will go. From there, when there is a 5%
[23:27] bounce, your long order will be placed from the lowest point. Ok? Understand it here. Now let me tell you that for example, you have placed a trade and what will the trade be? You guys lost. This
[23:41] is not an ideal situation. This is not an ideal scenario. This is how I do it. I save my capital. How do I save? How do I save my loss ? Let me rather friend, I do n't explain it to you people like this. For that, I neither did a
[23:56] live stream for an hour nor did I trade even once. In that I had explained everything that look, I am in loss of Rs 300. How do I convert this $ 300 loss into a $30 profit ? And I demonstrated that in a live stream. In that, all the strategies have been explained in a
[24:10] very detailed manner. Here I will teach you guys in a hurry in on the end screen and also in the description. Ok ? You should definitely go and watch that video. Hope you all have understood the things related to future trade.
[24:23] Some point is left. I know there may be many left. Let I will cover your points in the upcoming videos. See you in the next video. Take great care of yourself. Allah Hafiz. Long live Pakistan