Spot vs Futures: Which Crypto Trading Is Safer?
40sThis segment clearly contrasts spot and futures trading, highlighting that futures allow profit in falling markets, which is a key insight for beginners.
▶ Play ClipThis video is the third class in a free crypto trading course, focusing on futures trading. The instructor explains key concepts such as leverage, liquidation, funding fees, and the differences between spot and futures trading, using relatable examples like tomato farming and real estate.
The video begins with an overview of futures trading and how to profit in both rising and falling markets.
The agenda includes types of crypto trading, spot trading vs futures trading, leverage, liquidation, fees, and taxes.
The instructor recommends CoinDCX as the exchange, highlighting its FIU license, proof of reserves, and SIP facility.
Trading is buying low and selling high, or selling high and buying low (short selling).
Trading is categorized by time (scalping, day trading, swing trading, positional) and product (spot, futures, options, margin).
Spot trading involves buying actual coins, which are held in your wallet. Profit is only possible when prices rise.
Futures trading involves contracts based on price speculation, not actual coins. It allows profit in both directions.
Using a farmer and trader example, the instructor explains how futures contracts work: a paper agreement to buy/sell at a future price.
Futures trading is bidirectional: you can go long (bet on price increase) or short (bet on price decrease).
Leverage allows trading with borrowed capital, amplifying both profits and losses. Example: 10x leverage means a 5% move yields 50% profit.
Leverage use cases include capital efficiency, hedging, earning in bear markets, and diversification.
Liquidation occurs when the price moves against your position beyond a threshold, causing the exchange to close the trade to protect its loan.
For long positions: liquidation price = entry price * (1 - 1/leverage). For short: liquidation price = entry price * (1 + 1/leverage).
Leverage should be chosen based on the coin's typical daily movement. For Bitcoin (1-3% daily), 10x is safe; for meme coins (20-30%), lower leverage is safer.
Fees include maker fee (for limit orders, lower), taker fee (for market orders, higher), and funding fee (paid/received every 8 hours based on long/short imbalance).
Spot trading gains are taxed at a flat 30%, while futures trading gains are taxed as per income slab (business income).
The video provides a comprehensive introduction to futures trading, emphasizing the importance of understanding leverage, liquidation, and fees. The instructor encourages practice and learning before trading with real money.
"Title accurately reflects the content: a detailed class on crypto futures trading covering leverage, liquidation, and funding fees."
What is the main difference between spot trading and futures trading?
Spot trading involves buying actual coins, while futures trading involves contracts based on price speculation without owning the underlying asset.
07:16
What does 'bidirectional' mean in futures trading?
It means you can profit from both rising (long) and falling (short) markets.
14:33
What is leverage in futures trading?
Leverage allows you to trade with borrowed capital, amplifying both profits and losses. For example, 10x leverage means a 5% price move results in a 50% profit or loss on your capital.
16:12
What is the formula for liquidation price for a long position?
Liquidation price = entry price * (1 - 1/leverage).
30:35
What is the formula for liquidation price for a short position?
Liquidation price = entry price * (1 + 1/leverage).
30:35
How often is funding fee charged?
Every 8 hours.
54:30
What is the difference between maker fee and taker fee?
Maker fee is charged for placing limit orders (creating liquidity) and is lower; taker fee is charged for market orders (taking liquidity) and is higher.
43:59
How is futures trading taxed compared to spot trading?
Spot trading gains are taxed at a flat 30%, while futures trading gains are taxed as per the individual's income tax slab (business income).
55:03
What is a safe leverage for Bitcoin given its typical daily movement?
10x leverage is generally safe for Bitcoin as it moves 1-3% daily, and liquidation occurs at 10% movement against the position.
32:19
What is the purpose of funding fee?
Funding fee is a mechanism to balance long and short positions. The side with more traders pays the side with fewer traders to incentivize balance.
49:39
Bidirectional Trading
Explains how futures allow profit in both rising and falling markets, a key advantage over spot trading.
14:33Power of Leverage
Illustrates how leverage amplifies returns using a real estate example, making the concept relatable.
16:12Liquidation Price Formula
Provides a simple formula to calculate liquidation price, helping traders manage risk.
30:35Leverage Selection Based on Volatility
Advises choosing leverage based on coin volatility, debunking the myth of fixed safe leverage levels.
32:19Funding Fee Mechanism
Explains how funding fees work and how traders can earn or pay them based on market imbalance.
49:39[00:06] How to do futures trading? How to make money through futures trading both during market falls and market rises.
[00:20] class is three. I brought class three a little late but let me tell you that from now on we are going to have two to three sessions in a week. And if you do n't know then let me tell you about free crypto trading. Brother, we are running a series on free crypto trading. Today is class three.
[00:33] Its playlist is ready. When you search for free trading course on Google, When you search for free trading course on Google, you will get it if you search on YouTube. Or
[00:45] You will find all the videos in it. Ok? Today we are going to understand futures trading. What will be our agenda today? The agenda will be how many types of trading are there in crypto ? How does it happen? We understand this. What is spot trading? And
[00:59] how does spot investment happen? We will understand this. What are spot trading assets ? They will also understand this. What is futures trading? How does it happen? And Why [nasal sound] are people all over the world going crazy about
[01:12] trade futures. What is the share in crypto ? We will understand today. What are futures trading assets? How to trade ₹1 lakh by investing ₹1000 in futures? What is leverage and liquidation?
[01:26] How much leverage should be taken? Up to how much? Today I will explain leverage and liquidation to you like this, I will explain it like this, you will write it in the comment box that no one would have explained leverage and liquidation in this manner on the entire YouTube, I claim, I claim brother,
[01:42] I have told you that whatever concepts I will touch, I will touch them in great detail, so today I will explain leverage and liquidation like this, I will give you the formula, many people remain confused, know, but those who are old would know, hey, if you take leverage of this much then at what level will the
[01:56] liquidation happen, they are always tensed. I will give you the formula brother, it will be set in your mind forever. Ok ? What types of fees are charged
[02:08] ? What is maker fee? What is taker fee ? Today I will explain the funding fee to you in a very good way. People are very scared of funding fees. Hey, there will be a funding fee. Money is also earned from funding fees. Money is not taken from funding fees. He also brings the money.
[02:22] Today I will explain that to you. How many types of taxes are there in crypto trading ? So overall, today I am going to explain in detail from the perspective of future trading beginners. What is futures trading? How to do it?
[02:37] you all the concepts related to future trading. Is it okay brother? But before that, what do you need to trade ? Need an exchange. First of all you need a broker in the stock market. Exchange is required in the crypto market. And when it comes to exchanges
[02:52] I always talk about India's largest exchange and the only unicorn company exchange which is CoinDex. Ok? Why do I talk about this? This is FIU licensed. It has proof of reserve. The only exchange that has it. There
[03:09] is eGUI. It is very easy to trade and invest on it. Deposit and withdrawal in IAR is done through this. Meaning, money gets deposited or withdrawn from your PhonePe, Paytm, bank account. You can do SIP brother. Till now, this is the only exchange in India
[03:23] which has provided SIP facility in Bitcoin, Ethereum and Crypto. You can start SIP here from ₹200 per week. We have made a detailed video, you can write Bitcoin SIP Sagar Sinha. What will you write? Bitcoin SIP Sagar Sinha. If you
[03:37] write Bitcoin SIP, many videos will appear. You may not understand it but if you want to see yours then write Bitcoin SIP Sagar Sinha, the video will appear in front of you, this is a very interesting thing, you can trade and invest in multi asset here, you can do it
[03:51] in crypto, you can do it in gold and silver, you can do it in US stocks, there is no need to go anywhere, everything will be done on one exchange, you will get 20% discount on brokerage, if you do KYC through the link in discount,
[04:04] sorry you call discount, which we have given in the description, then you will get 20% discount on brokerage in the first month. Plus, the offer is still going on. You will get ₹100 worth of Bitcoin for free. To get ₹100 worth of Bitcoin for
[04:17] free, you have to use the code Sagar Sinha100. get for doing this? On investing any amount. This is not on trading. This is on in spot or [nasal sound] then
[04:32] do SIP of any amount. Correct? This is a limited time offer. This is not going to last forever. Apart from that, we have created a Telegram channel to support you. As long as this course is running and even after that, we have always kept a team to support you
[04:47] brother, who conducts free live classes for you and teaches you every day on Telegram, you do not have to do any useless work there. It is taught there. The concepts are taught to you in detail. You are given free support. If you have
[05:01] any question, you can ask it in the live classes there. Free trading practice is provided and free learning material is given to you every day. So we have provided all these facilities to you and you know that all our services are
[05:14] free. So if anyone asks for money in our name, or All our stuff is free. We are also conducting courses and are doing it for free. If I wanted, I could have
[05:26] made a bundle of one course and taken ₹2000 from you. I do n't want to do it, I want to give it to you for free. n't want to do it, I want to give it to you for free. Ok? So please do this. Now let's come to crypto trading. What is trading? Buy Sell. Buy cheap, sell expensive.
[05:42] Buy something for ₹10, sell it for ₹15, make a profit of ₹5. Or if you sell it for ₹15 and buy it for ₹10, you still make a profit of ₹5. Or you sold it for 15 rupees in advance and bought it for 10 rupees, how will that happen? I have taught you short selling. Please see it in the second session first. You will
[05:57] You can earn money by selling things that you don't have. This is the beauty of future trading, brother. Ok? So trading in crypto basically happens in three ways. Time based trading,
[06:12] product based trading, strategy based trading. Time based trading trading. Time based trading means that some people enter and exit within 5 minutes. 5 minutes, 15 minutes. That is called scalping. Scalping
[06:25] Trading. Some people do day trading, buy in the morning and sell in the evening. Buying and selling within a day, that trading, some people do swing trading, bought today, wasted a week, sold, trading, bought today, wasted a week, sold, positional trading wasted a month, holding for a
[06:38] long time, what is spot trading as per the product, I will explain it properly now, futures trading, this is a complete course brother, option trading of futures trading, margin trading, we will talk about these two things
[06:50] today because this is the most famous, it is used the most, it is in the most needed the most, explain spot trading and futures to those people, especially futures, I will explain futures brother in detail, so I will explain it in detail. After that it
[07:04] is somewhat strategy based. We will cover this portion and this portion in the coming sessions. For now, let's talk about spot trading and futures trading. What is trading. What is this? So understand brother what happens?
[07:16] Look, when you open a spot trading Coin DC exchange, then when you buy any token there, token coin, then you are asked there. Are you buying in futures go to the spot tab and buy, it is in the spot. If you go to the tab for futures, it is
[07:30] what is the difference between the two? When should we buy in spot ? When should we buy futures? What is the use? What is the harm? Tell me this. So let me tell you. What happens in the spot, right? You don't have to do anything. Money needs to be added to the Coin DCX wallet from the bank. Once the
[07:46] money is deposited in the wallet, you can use that amount to or any other coin you wish to buy. That amount of coin comes into your wallet. Wallet means
[07:59] CoinDCx's wallet. Tomorrow if you wish to take it in hard wallet, you can take it in hard wallet. If you wish to sell or transfer it to someone tomorrow, you can do so. You
[08:11] You get all the facilities in spot trading. Ok? And in spot trading, it is not necessary that if Bitcoin is trading at ₹70 lakh, then we will have to invest only ₹70 lakh to buy one Bitcoin. No, you can get Bitcoin worth ₹10,000. You can buy it for Rs 500, Rs
[08:25] 5000, Rs 100, you can buy it for any amount of rupees, Bitcoin, Ethereum or any other coin. The only problem with spot trading is that you make money only when the market is going up.
[08:38] You will make a profit only when the price of Bitcoin goes up. If the price of Bitcoin is falling then you will suffer a loss. There is no way to make money in a falling market. futures.
[08:52] I will explain the futures now. Correct. What is its benefit? There is no expiry. Once you buy any token, it is yours for three or seven births, no matter how many births you have. It
[09:04] is yours brother. He will never say, who are we to you? Hey brother, we are together. who are we to you? Hey brother, we are together. We are always yours. He will say it like this. However, there is no expiry even in futures. This is the beauty of crypto in crypto,
[09:17] Ok? There is expiry in the stock market. So no more funding fees. There are no funding fees. What is funding fee? I will tell you. I will tell you in great detail. People don't understand funding fees. I will explain it in such a way that you will understand it in one go.
[09:31] This is a real asset. Meaning it has arrived in your wallet. You can withdraw, you can transfer. You can take it in your hard wallet. What is loss? Money will be made only when the price increases. This is One Directional. Money will be made only when the price increases. I have told
[09:45] you. 30% will be charged on the gain. Whatever profit you earn, 30% is charged on the spot. This is 30% tax on crypto. He's actually talking about spots. They don't know about futures. Uncle, there is no 30% tax on futures, so there is
[10:02] no 30% tax on trading in crypto also. I will explain that too today. After that you understand future trading. The most darn thing. People are crazy about future trading. How to do futures trading? Make money with futures trading.
[10:18] Look, I think future trading gives you the opportunity to earn money and people do earn. But yes, just the opposite is also true. Most people lose money in future trading. Those who
[10:33] looked at it like a lottery, did it without learning, without practicing, their money will be lost. If they don't do it properly, they will lose their money. But if you practice in the right way But if you practice in the right way by understanding the concept, you can make money.
[10:47] Ok? But money will also be lost if done in the wrong way, without hurry, without learning, in future trading, if something is made, it also gets spoiled. If you make money in future trading, you also lose money. Both happen. So, understand future trading
[11:01] well, what is it? Now let me explain this with an example. Suppose Raj is a farmer. He sells tomatoes. And Raj is afraid that by the time Diwali price of tomatoes [nasal sound] will fall. So if I keep the tomatoes
[11:16] I have grown till Diwali, the price will fall and I will incur a loss. On the other side there is a man named Amit. Amit is a trader. He is a businessman. He is a trader. He is a businessman. He is a businessman. He has to buy tomatoes. He is thinking
[11:30] is a businessman. He has to buy tomatoes. He is thinking that friend, the rates will remain the same till Diwali, Amit the tomato trader. He fears that the rates will increase by Diwali. No no yes sorry what Raj is thinking is that the price of tomatoes should not fall till Diwali Amit is thinking that the price of tomatoes should not increase
[11:46] till Diwali so when there is a possibility of increase then what will Amit think, I will buy it now and keep it goes [nasal voice] to do the deal, in the deal he meets Raj the farmer so Raj says to the farmer brother let's do the deal now what is the deal let's do one thing
[12:00] on Diwali if it is ₹50 per kg now the deal has been done [nasal voice] brother brother I will buy 100 kg tomatoes on Diwali at the rate of ₹50 per kg.
[12:12] And this deal that has been done is just on paper. A contract has been made. The real tomato has neither been given nor taken. The real tomato is still with Raj Kisan. We haven't had that many real tomatoes yet. I have just made a contract that after Diwali
[12:27] just made a contract that after Diwali I will buy 100 kg of tomatoes at the rate of ₹50 per kg. The contract is on paper. This paper is called futures trading. It is called a futures contract.
[12:40] It became a contract, not futures trading. How will trading happen? understand. If the price of How will trading happen? understand. If the price of tomato increases from ₹50 to ₹70 on Diwali, then Raj will suffer a loss of ₹2000. Isn't it? Because Raj has sold it cheaply. Raj was afraid
[12:53] that some incident might happen after Diwali. Now he sold it because he had to sell it for ₹50. Amit made a profit of ₹2000. Amit is a businessman. If tomatoes cost ₹30 on Diwali, Raj would have made a profit of ₹2000. Amit suffered a loss of ₹2000.
[13:10] But when will this happen? This will happen on Diwali. It will happen after Diwali. This is what happens in this case, futures trading. Just replace tomatoes with crypto coins. The actual crypto coin is not bought or sold. The price of that crypto coin has been bid.
[13:26] After Diwali, if Bitcoin becomes ₹200, sorry, it is running at ₹70 lakh. Suppose now after Diwali, if Bitcoin becomes worth 80 lakhs, then I will buy that much Bitcoin. The contract was made. The
[13:38] second man is saying that after Diwali, if Bitcoin falls from 70 to 60, then I will buy that much Bitcoin. The contract became paper. Now whatever happens after Diwali, whether it increases or decreases, the profit or loss will depend on the bid placed.
[13:52] This happens only on paper. No one bought real Bitcoin. Only the price was bid. It's exactly the same way. People bet on you matches, right? Now it has become illegal, brother, it has become banned. But some people might do it.
[14:05] Virat Kohli will score 100. Will score a century. The contract was made. He said he would kill 100 times. And it turns out Virat Kohli was out at 50. There was a loss. But someone had said that Virat Kohli will push to 50 today and he made a profit. Correct? Has the bidding been done
[14:20] or is the real Virat Kohli in the field? No one has taken Virat Kohli. No one is buying crypto coins just like that. Only bidding is taking place on its paper regarding the price. Only bidding is taking place on its paper regarding the price. This is a futures contract. Correct?
[14:33] Now understand the real benefit of future trading brother. The biggest advantage of futures trading is that it is bidirectional. The price may or may not fall. You can trade even if it falls. You can trade even if the price increases. Suppose the
[14:49] price of Bitcoin is currently ₹50 lakh. Suppose Raj said that he created a long position, that is, he bought it because he felt that the price would increase. On the other side is Amit.
[15:01] He created a short position. He pressed the sell button because he felt the price would because he felt the price would fall. If these two are good, what did he do? Raj went long futures contract and he went short
[15:16] futures contract. Correct? This is what is called if he has already shorted, if he has contract. If he goes long then he goes long the futures contract. Correct? The price was bid on paper. Just have n't taken real Bitcoin. Now the result comes after a week.
[15:33] n't taken real Bitcoin. Now the result comes after a week. After a week, Bitcoin became worth ₹55 lakh. [nasal sound] Raj will make a profit and Amit will incur a loss. But Bitcoin became worth Rs 45 lakh. From 50 it became 45. In this case Raj will suffer a loss.
[15:46] But Amit will make profit. Ok? This is future trading. Money can grow even when it falls. On This is future trading. Money can grow even when it falls. On the contrary, money can be made even when it rises and even when it falls. But money can also be lost. There is a chance to
[16:00] make money on both sides of both trades in the future. Chance. Now when we talk about future trading, the biggest beauty of future trading is that it is
[16:12] bidirectional as well as leverage. Leverage is an interesting concept brother. Understand what leverage is. Leverage means borrowing power. This is both a blessing and a curse. Meaning it is a blessing and also sharp. A lot of money can be
[16:28] made with little capital. But whatever little capital there is can also be lost. But whatever little capital there is can also be lost. Both can happen. The good thing about this is that there is no limit on earning. You can earn as much as you want like 10x, 20x, 30x, 100x, 100 times. There
[16:45] is a limit to losing. You will lose only as much as you brought. If you have brought a thousand then only a thousand will go. But lakhs can be made from thousands. This is the power of leverage. You
[16:57] may have thousands at hand but by investing thousands you can make lakhs. But when it comes to losing, brother, if I have a thousand then I will lose only a thousand. What more can we lose than that? Correct? Suppose you have ₹1000. The exchange says
[17:11] Suppose you have ₹1000. The exchange says I give you 100 times the strength. I mean, now you can trade for ₹1 lakh by investing ₹1000. If you have only ₹1000 but can trade for lakhs then the profit will be
[17:27] then the profit will be on lakhs brother. The maximum loss can be ₹1000 only on a maximum of ₹1000. Not above that. But the profit will be in lakhs. It is just like Bauji buying a flat worth ₹50 lakh by paying a down payment of ₹5 lakh.
[17:41] Now how does a person buy a flat worth ₹50 lakh ? By giving 5 lakhs. Hey, he takes a loan of Rs 45 lakh. Ok? Now how can I call this leverage? I will explain now. For now, just look at the photo of leverage. The deposit may be ₹1000 but
[17:55] your buying power can be ₹10,000 or even lakhs. I have little money but I little money but I can buy such big things. Correct? Now brother, understand leverage properly in detail. Raj bought a flat in Faridabad in 2015.
[18:10] Where did you get it? In Faridabad. In 2015. The price of the flat was ₹50 lakh. How much did Raj pay from his pocket? Only ₹5 lakh. He took a home loan of ₹45 lakh
[18:22] and bought a flat worth ₹ lakh. Look, this is leverage. 10x leverage. ₹5 lakh was nearby. I multiplied it 10 times and it became 50 lakhs. Where did 10 times come from? The bank gave it. earn interest. But Raj got it, right? Now watch how Raj takes advantage of leverage.
[18:39] In 2026, the same flat became worth ₹80 lakh. Suppose Raj's profit from flat appreciation is ₹ lakh. Meaning, if a flat worth Rs 50 lakh is now worth Rs 80 lakh, then its price has increased by Rs 1 lakh
[18:52] extra. Meaning if a flat worth Rs 50 lakh becomes worth Rs 80 lakh then there is 60% growth but there is becomes worth Rs 80 lakh then there is 60% growth but there is no 60% growth on Raj's money. There no 60% growth on Raj's money. There is 600% growth on Raj's money. The price of the flat has increased by 30%.
[19:05] No sorry the price of the flat has increased by 60%. If 50 lakhs becomes 80 lakhs then there is an increase of 60%. 50 lakhs becomes 80 lakhs then there is an increase of 60%. But Raj's profit was 600%. I am saying it again for the third time. The price of flat [nasal sound] has increased by 60%.
[19:18] 60% but Raj's profit was 600%. How do you understand how much Raj had invested from his pocket, only ₹5 lakh 45 lakh, the bank had given him
[19:30] ₹5 lakh 45 lakh, the bank had given him Raj's actual return of ₹30 lakh, the price of the flat has increased by 30 lakh divided by 5 lakh, that is, six times, he had spent only 5 lakh from his pocket, and taking 5 lakh, he bought a flat worth 50 lakh, so now he has a
[19:46] thing worth 50 lakh, and the thing worth 50 lakh has now become worth 80 lakh, so when 50 lakh became a thing worth 80 lakh, then when 50 lakh became 80 lakh, then 50 lakh became 80 lakh, that means whose profit was that of 30 lakh [nasal sound]. Now how much did Raj pay to make that profit of Rs 30 lakh
[20:01] ? I had given only Rs 5 lakh from my pocket. When I gave Rs 5 lakh and made a profit of Rs 30 lakh. By investing Rs 5 lakh, a profit of Rs 30 lakh was made. What percentage of profit was made? 600% 600%
[20:15] This is the power of leverage. And leverage doesn't just happen in property. just happen in property. invest Rs 1 lakh crore from your own house ? Had taken a loan. You may have got a loan at 20%, 25% or 15%.
[20:30] Leverage Big people use leverage everywhere. Poor people think that no, brother, we should not take a loan. Hey brother, a small percentage is lost but you get a chance to earn big. Leverage, this is the same thing, this is the
[20:46] in future studies. [nasal sound] If there was no leverage, Raj would have been able to buy a flat for only Rs 5 lakh. And even if the flat worth Rs 5 lakh becomes Rs But [nasal sound] he invested ₹5 lakh in this case and
[21:00] [nasal sound] he invested ₹5 lakh in this case and made a profit of ₹1 lakh. Leverage. What is the moral, brother, Raj made a profit of 10 times by buying because of leverage. Now if we look at this leverage in crypto, how should we look at it? Just
[21:14] understand this. Please understand carefully. Sir, suppose Raj invested ₹10,000 from his pocket. He has ₹10,000 so he used ₹10,000 to He has ₹10,000 so he used ₹10,000 to
[21:30] Move means let's suppose he did long. Correct? He pressed the buy button, went long, and Bitcoin went up 5%. If he has invested only ₹10,000. If no leverage has been taken then a profit of ₹500 has been made on a 5% increase. I have invested ₹10,000 on ₹10,000. If it
[21:46] increased by 5% then there was a profit of ₹500. Ok? I will tell you in writing. Oh, color, color, yes.
[21:58] Invested Rs 10,000. Ok? If it increases by 5% then how much? There was a profit of ₹500. Ok? If it increases by 5% then how much? There was a profit of ₹500. But if But if Raj had taken 2x leverage, then as soon as he took 2x
[22:12] Raj had taken 2x leverage, then as soon as he took 2x leverage, brother, why are leverage, brother, why are you acting brother? He had 10k * 2x you acting brother? He had 10k * 2x means it got doubled. So now the position size has
[22:26] means it got doubled. So now the position size has become ₹00 brother. I have spent ₹1,000 from my pocket. But the trading position size became ₹00. Now that only 5% of Bitcoin has moved, ₹00. Now that only 5% of Bitcoin has moved, 5% of ₹000 is 5% of ₹000 equals ₹1000. Sir, now the profit has increased
[22:42] 5% of ₹000 is 5% of ₹000 equals ₹1000. Sir, now the profit has increased on the same capital of Rs 10,000 with the same movement of 5%. And in this way Bitcoin has moved only 5% but leverage would have been 3X. So the profit at that time would have been Rs 1500. If 5x had been taken then it would have been 2500. If I had taken 10x, it would have been
[23:00] 5x had been taken then it would have been 2500. If I had taken 10x, it would have been 5000. How 5000. How brother? Even though he had 10% in hand, he took a leverage of 5 times into it. So now his capital is ₹500
[23:15] his capital is ₹500 and when the position size is ₹00 and and when the position size is ₹00 and Bitcoin has gone up by only 5% then ₹00 * 5% is ₹5,000. Sir, I have contributed ₹100 from my pocket. And
[23:32] 50 ₹5,000 was earned. That is, what percentage of the actual earnings were made? By 50%. Bitcoin has only gone up by 5% but the gains have been 50%, this is the power of leverage. I am
[23:45] able to explain the leverage, in the past it might have been 10,000 but by applying leverage it was made 50,000, now the profit will be on this only.
[23:57] is a limit to the loss. Maximum loss is Rs 10,000 and the loss cannot be more than that. But brother, if the profit had increased by 5% or 10%, then Rs 10,000 would have become Rs 10,000. If it turns 20% then it would be ₹000, then by
[24:10] investing ₹1,000 one can earn lakhs through leverage. Although this is very difficult. Now first you should understand the concept of leverage carefully. Ok? So lovage is such a powerful thing. Ok? Can I explain? Write in the comment box brother. No one explains like you. I really
[24:25] enjoy the way you guys write. It is a lot of fun to read. And we explain it to you openly. Correct? Now let me explain the professional cases of leverage.
[24:42] efficiency. Big game for little money. Amit has ₹00. He wants to trade in five different coins. He can invest ₹10,000 in each coin without leverage. If there are five coins then the total capital is ₹00. But if 2x leverage is taken
[24:57] But if 2x leverage is taken then the position will be of ₹00 in each coin. The capital is the same but the exposure has doubled. Trading capital doubled. Can capture more opportunities. The second use case is hedging. What about hazing
[25:10] ? Suppose you have bought Bitcoin in your spot. He has Bitcoin worth ₹1 lakh and Raj feels that Bitcoin may fall by 10% in the next one week. So if it can fall then there will be loss of money at the spot. So in return, Raj bought a short contract worth ₹2 lakh. I
[25:25] bought a short futures contract, brother. Even if Bitcoin falls by 10%, there will be a loss of Rs 20,000 in the spot market, but if he makes a profit of Rs 20,000 in the future, then he will not suffer any significant loss. So he covered his spot loss
[25:40] with the future profit. This is called hazing. And hedging is what the big hedge fund managers do in the world. This is their expertise. Ok? Use Case Three Earnings in a Bear Market. Now, in 2022, Bitcoin fell from Rs 50 lakh to Rs 15 lakh.
[25:56] Those who had spots were crying. But he earned a lot of money through futures. Even though it is falling, I still earned money brother. After that there are use cases of diversification. Diversification means you go long in Bitcoin worth Rs 5,000,
[26:11] buy Ethereum worth Rs 3,000, that is, diversify your money worth Rs 20,000. I am going to explain this diversification in great detail with examples in this very session. So these are basically some use So these are basically some use cases of future contracts and sorry
[26:24] leverage and real estate builders, sir, look at the big people in real estate, no one invests money from their own pocket. If a builder worth Rs. 1000 crores wants to develop, he will invest Rs. 1000 crores from his own pocket, even if he has the money, but he will
[26:38] even if he has the money, but he will not take a loan, that leverage is big business owners, not take a loan, that leverage is big business owners, Reliance, take any big business, brother, everything is done [nasal voice]. Fund managers do the same thing, the example
[26:50] I just gave you, if someone tells you not to take leverage, leverage is a very useful thing, you just need to know how to use it, if you do take leverage, leverage is a very useful thing, you just need to know how to use it, if you do n't know how to use it, then leverage will rob you, it will ruin you, if you know how to use it, then a lot of benefits can be taken from
[27:04] liquidation. Now let me explain it to you with a local example, suppose there is suppose there is a moneylender named Ramlal in a locality, he gives a loan of Rs. 90 to Raj, in return he tells Raj that Raj, this
[27:17] chain of Rs. 10 that you have with you, Keep ₹1,000 as collateral. Keep ₹10,000 in return. I give you ₹90,000. Ok? This is called leverage. This means Raj got 10x leverage. Instead of ₹1,000, it became a thing worth ₹90,000. Meaning this game of ₹1 lakh is over brother.
[27:33] Now he put a condition to Ramlal that if the price of gold goes below ₹81,000 then I will sell this chain of yours and I will keep the money. Correct? And the same happened. When it went below ₹81,000, he recovered his money by selling Raj's chain worth ₹10,000.
[27:50] He gave ₹90,000, right? So when ₹90,000 was given, the price of the chain went below ₹81,000 and ₹10,000 was Raj's, so ₹81,000 + ₹90,000, so ₹90,000 reached the moneylender Ramlal. He did not suffer any loss. Raj suffered a complete
[28:06] loss. Raj's change of Rs 10,000 is gone, brother. This Ramlal who is a moneylender, this is an exchange. The exchange never lets its money sink. The
[28:18] exchange gave you leverage whenever it felt like it. You also took 10x 20x the winnings. When the exchange feels that it is incurring losses and my money may get lost, the exchange will close the position. The exchange will close the exchange trade. Now you will
[28:30] detail later. Please understand carefully. Well, here a question might have arisen that why does the exchange give a loan of ₹0000? What is the benefit of exchange brother? What is the benefit of exchange brother? So the advantage of the exchange is that the
[28:43] brokerage that the exchange charges, maker fee, taker fee, I will tell you now, the brokerage that it charges is not charged on your capital amount, it charges on the position size, if your
[28:55] capital is ₹10 and by taking 10x leverage the position size becomes ₹1 lakh, then the exchange charges brokerage on ₹1 lakh, so the earning of the exchange is brokerage, so the more leverage you take, the more brokerage the exchange has to bear, hence the exchange gives you
[29:10] full leverage. Correct? But smart people also earn from leverage. Brother, it is not that I do not smart people also earn from leverage. Brother, it is not that I do not earn. Now when is liquidation triggered and what happens? You will understand this also in detail. Please understand carefully.
[29:22] You will understand this also in detail. Please understand carefully. position should now be closed? Now the trade should be closed. Look, when you take a trade on leverage, your account shows three numbers.
[29:38] You will find the coin on the DCX exchange. Whenever you trade on leverage, the initial margin will be shown there. Initial margin means how much capital went out of your pocket. After that the maintenance margin will be shown to you. The minimum balance must be that much. Otherwise
[29:52] the position will be closed. After that, liquidation price means when you are taking leverage of 3x 5x 10x, then it is written at what price the liquidation will take place,
[30:04] your bitcoin worth 70 lakhs is trading, you bought it at 70 lakhs, but at how much will the bitcoin reach after which your trade will be liquidated, that is written as soon as the price touches that magic level, the exchange automatically closes the position
[30:22] on market order, closes the market and at what level, what is that magic level, now I will explain what is magic level, it gets deducted after reaching what level, see, I have given you this formula in a simple way,
[30:35] I don't think anyone would have given this formula before today, remember this formula, you will never be worried about the liquidation price, there is still it remains in the mind that if we take this much then how much will it be, if we take this much
[30:50] you can see it by doing this much on the exchange, still I will give you the formula for the one who wants to take it. Look, if you are going long then remember this formula. Entry price means if you are taking entry at ₹70 lakh then ₹70 lakh
[31:03] 1 - 1 / whatever leverage you are taking and for short it will just be plus. For long here minus, for short here plus, let me explain the example. Suppose Raj's initial capital is ₹10,000 and the current price of Bitcoin is ₹70 lakh.
[31:18] He took 10x leverage. He has longed it. The price charged to him will increase. So the total position size became ₹1 lakh. He had ₹1000 with him. If leverage of 10x was taken, a position of ₹1 lakh was created. Now understand the calculation of liquidation price. Sir the liquidation
[31:35] price will be 70 lakhs i.e. entry entry price * 1/1 - 1/10, 10 sorry what was 10? Hey, where did you go? What is this 10? Leverage. 10x leverage is taken. So according to this calculation it comes out to be
[31:49] 10x leverage is taken. So according to this calculation it comes out to be 0.9. That means 70 0.9. That means 70 lakh * 0.9 then the price comes to 63 lakh. As soon as the price reaches Rs 63 lakh, the exchange will automatically cancel the deal. The exchange will automatically
[32:03] close the trade. That means it was around 10%. The understand? This is liquidation. Waite will not exchange.
[32:19] Meaning, if Bitcoin goes below Rs 63 lakh then Raj's game is over. Now after that the question arises Raj's game is over. Now after that the question arises that how much leverage is right to take? Sir, look, some people say that it is okay to take 5x leverage according to each coin. Taking 3x 2x
[32:34] is fine. This does not happen. There is no straight forward formula that only 2x should be taken. Should be taken only 3x. If you look at it according to the coin then you will understand. Why? Sir, if you look at Bitcoin, Bitcoin generally moves 1 to 3% in a day.
[32:47] Sometimes it is 5 to 8%, 10%, but this is an occasional calculation. So generally 1 occasional calculation. So generally 1 to 3% movement is happening. So Sir Bitcoin to 3% movement is happening. So Sir Bitcoin if I take 10% leverage I just
[33:01] told you where did the calculation go? Sorry. What I told you about the calculation is that I told you about the calculation is that if you have taken 10x leverage, then if the price goes down by 10%, that is, in the opposite direction, the position will be liquidated.
[33:17] position will be liquidated. 10% at 10x leverage so I'm 10% so Bitcoin is not moving in a day. Generally in maximum cases. So when there is no 10% move, that means if I have taken 10x leverage then I am safe. Yes meme
[33:30] coins move 20 25 30% in a day. There, if I take 10x leverage, meaning if it goes down by 10% or goes in the opposite direction by 10%, then the position will be liquidated, so in that case I cannot take 10%, but in the case of Bitcoin, I can take 10x 10%. I can
[33:46] take 10x. Ok? So I understand that this is the game of leverage. Now let me explain to you another leverage calculation. Look at the calculation of leverage, this also happens. For example, let's suppose you are taking 5x leverage, then what percentage of movement in 5x leverage will be
[34:03] against you that your position will be liquidated. So if you have taken 5x leverage then the calculation is simple: subtract it from the total of 100. How much should I multiply by to get 100 with 5x leverage ? 20 means if the movement goes against the 20% mark then
[34:19] your position will be liquidated. If you have taken 10x leverage, then how much should I multiply it to make it 100. If I multiply 10 by 10 then 10 will be 100, so it
[34:31] means it will be liquidated on 10% movement, on 10% movement against you. Well, if you have taken 25x leverage, then how much should I multiply 25 by 25 to make it 100. If we do 25
[34:43] * 4 then it will be 100, so it means it will be liquidated on 4% movement of price going against you. No means it will be liquidated on 4% movement of price going against you. No formula is very simple, isn't it? It should reach 100. Suppose I have taken the average of 50x, then
[34:57] if I do 50 * 2 then it becomes 100. Meaning 2% of the market will be liquidated against your movement. Meaning 2% of the market will be liquidated against your movement. Similarly, if the market goes against 100x 1% then your movement will result in your position being liquidated.
[35:12] Now look, this 1% is very risky because if we talk about Bitcoin, then 1% goes up and down at any time. You have taken the trade. You said long but it went down by 1%, so when it goes down by 1% your position will be liquidated. You have given only Rs 1000
[35:28] from your pocket and taken 100x, so Rs 1000 means Rs 1 lakh is gone. So brother, that so Rs 1000 means Rs 1 lakh is gone. So brother, that 1000 is also gone. Now in such a situation, the right way is to 1000 is also gone. Now in such a situation, the right way is to
[35:42] move by how much percentage. If a coin moves maximum 2 to 3% then it is okay to take 10x leverage brother. I know it will never go below 10%. Isn't it? And if I know of any other coin, it moves only 1 to 2%. He does not have 4% movement.
[35:58] I already knew. So I can also take 25x leverage in that case. It is also safe to take 25x leverage there. People say don't take more than 2x leverage, don't take more than 5x leverage. Hey, it does n't happen like this, sir. I will watch the movement of the coin.
[36:11] n't happen like this, sir. I will watch the movement of the coin. If any coin is currently going through a cold time. I know brother Bitcoin is sideways. Bitcoin is not moving above 1% or 1.5%. There is a Bitcoin is sideways. Bitcoin is not moving above 1% or 1.5%. There is a
[36:24] in that cold environment I can comfortably take 25x leverage. Because I know there is no movement above 1 to 10%. So 4% will go against. So there will be liquidation, so 4% is not going away right now, Bitcoin, so I can also take 25x leverage.
[36:37] Now you might find out that Bitcoin is absolutely cool. 1% maximum movement is happening since last one week. If such a season is going on and continues. There are many such months in a year. There are many weeks when the market is moving only 1/4%. So
[36:51] [nasal sound] when only 1/5% is moving. There is no movement of even 2%. So neither 2% is going up nor 2% is going down. So this means that even 2% will not go against my position. So when 2% will not go against my position then I can
[37:05] also take 50x leverage at that time. At that time it is also safe to take 50x leverage. I am breaking your illusion. What have people around the world said? Leverage should not be taken more than 2x, 5x, 10x. Sir, it is safe to take 50x leverage here. Yes. But you
[37:21] see brother, there is turmoil going on in Bitcoin also. For the last several weeks, it has been going up by 34% and down by 3-4%. I won't take 50x at that time. At that time I will not even take 25x
[37:33] because 3-4% can go up or down anytime. There I will stay up to 10x leverage. But I am realizing that brother, that phase of Bitcoin is also going on. If it is going up or down by 10-12%, then I will not take even 10x leverage at that time. Hey, what
[37:46] happened? If it ever goes up 10-12% or if 10-12-15%, I wo n't even take 10x leverage there. That too is risky. Correct? So the risk is not like that above 2x it is risky, above 5x it is risky.
[38:03] Look at the movement of that coin these days. And [nasal sound] if that much movement happens against you, will the exchange hold your position exchange hold your position ? It is that safe as it will not get liquidated.
[38:17] Like in some cases even 50x is safe and [nasal sound] in some cases even 10x is not safe. Did I explain it to you? Has anyone explained liquidation like this till now? Please write to us in the comment section. Brother, okay, 100x leverage is
[38:30] never safe because 1% movement can happen at any time. There is no month in a year when there is not even 1% movement. So 100x leverage is never safe, never safe. And anything above that is never safe. So, at least cut off 100x. You should never take
[38:45] 100x in your life. Never take it up looking at the timing, looking at the coin, what kind of coin it is, and also look at the movement of the coin in the last one week. Look at the
[38:57] movement going on in one week. Brother, decide accordingly. Okay, now after that I will use leverage smartly, but these are hypothetical. The numbers I am telling you, let me give a
[39:12] disclaimer without any technicalities. Learn analysis and do not apply it otherwise there are high chances of loss. Let me explain for the sake of explaining. Suppose you have ₹00 then never trade ₹00 at one place. Use diversification. A
[39:28] while ago we had explained the use case and diversification in it. Now let me explain this with an example. diversification in it. Now let me explain this with an example.
[39:41] By using the advantage of leverage. You have ₹5,000. But invest ₹00 ₹5,000. But invest ₹00 in 10 different coins in the amount of 5,000 each. And take 10x leverage. I have explained to you when to take 10x and when not to take it. So I'm
[39:56] taking 10x leverage here. I am assuming that my position will not be liquidated even at 10x. So I took 10x here. Make sure it is not a meme coin, brother. There should not be much movement. Make sure to make this. Otherwise, take maximum leverage of 2 to 5x there.
[40:09] make this. Otherwise, take maximum leverage of 2 to 5x there. Correct? If I am taking 10x leverage. I am investing five ₹5000 in 10 different coins. And I am taking 10x leverage, so my position of ₹00 became per coin. Correct?
[40:26] my position of ₹00 became per coin. Correct? How much is my coin brother? I put ₹5,000 I had in one coin. How much is my coin brother? I put ₹5,000 I had in one coin.
[40:40] in one coin. How many coins have I collected like this? I have taken 10 coins. So 10 coins means ₹50,000 * 10, so my total position became ₹5 lakh. This is what I have written here as well. My total position became ₹5 lakh. In which my self investment is
[40:54] ₹50,000 or investment of ₹00 from my pocket. But I took leverage and created a position of Rs 5 lakh. Correct? Now see the power of leverage. Suppose four coins out of it get liquidated. Well, that is why I have
[41:09] written that you are doing technical analysis after learning it. If technical analysis is not learnt then it is possible that all 10 coins may get liquidated. So I am assuming that you have learnt it and let us assume that the four coin trade went against you and there was
[41:23] liquidation in all the four coins, then when the liquidation happened in all the four coins, So if four coins are liquidated then you have a clear loss of ₹00. But I
[41:36] believe the remaining six coins went in your favor. I did not go against you. And I believe that 5% movement has happened in those coins in which I invested. Today's 5% is too much. It is really difficult to move 5% in a day. It
[41:50] is difficult for coins like Bitcoin. But I accepted it. The meme is coined. You had kept some small coin. Suppose I accept it, then see what will be the gain in this case? The position is ₹00. There was a gain of 5%. So that means there was a gain of ₹5,000
[42:05] brother. Earned ₹5,000. What was the total gain in this way? If you earned ₹5,000 in one coin, you earned ₹00 in six coins. So there is only a gain of ₹00 but your capital was also the same i.e. ₹00. You had invested ₹5,000. If it was in six coins then
[42:22] in six coins then your capital was in six coins 5 6 ₹00 ₹00 and ₹00 became your gain. So the money you have right now is ₹60,000. How much was charged? I right now is ₹60,000. How much was charged? I invested ₹00 and
[42:36] four coins got liquidated, which means I lost four coins and even after that I made a profit of ₹10. lost four coins and even after that I made a profit of ₹10. This is the This is the benefit of leverage with diversification. People do leverage and
[42:50] learn it, but if they do not do diversification with leverage, then not do diversification with leverage, then diversification is always necessary with leverage. Bhaiya, have you heard the [nasal sound] all the money should not be put in one stock. Do
[43:04] n't put all the money in one coin. Similarly, in trading also, do not do all the trading in one coin. When you have taken leverage, then do diversification along with leverage. Only then will you be able to take real advantage.
[43:20] Someone told me this, please tell me in the comment box. Ok? So the total money that you have Ok? So the total money that you have now is ₹60,000, you invested it earlier it was only ₹00. 500 to 60 means a profit of ₹10,000 and diversification despite losses in four coins.
[43:33] despite losses in four coins. higher winning probability. The winning probability has increased brother. If went negative, then all the money is lost, right? It's over, right? Okay, or your stop
[43:47] loss will be hit at the same level at which you have placed it. Correct? So now come brother, I have explained leverage and liquidation to you. Now let me explain the fees. Sir, there are three types
[43:59] of fees, whether you do futures trading or not, there will be two types of fees in spot trading, but there are two types of fees. Now I will explain how many types there are. Look, when we trade in crypto, first of all we have a maker
[44:15] fee. Maker fee means whenever we place a limit order. You can place a limit order either in spot or futures. So, we call placing a limit order a maker fee. Now what does maker fee mean? Maker. Maker
[44:30] means what maker? creator. What maker? Liquidity creator. I will maker? Liquidity creator. I will explain what happens. Now suppose Raj reached the vegetable market early in the morning at 5:00 am.
[44:43] He set up his empty stall and put up a board in the stall saying, brother, tomatoes are ₹40 per kg. So when tomatoes are ₹40 per kg. If Raj put up such a board, what did the entire vegetable market know? Hey Raj is selling tomatoes. I can go to Raj and buy tomatoes. So, it
[44:59] I can go to Raj and buy tomatoes. So, it means that availability of tomatoes was created for that market. That means Raj worked for that market. So when the rule came, that market benefited. Similarly, that market is an exchange and Raj is a trader.
[45:16] When Raj places a limit order, it means he has created liquidity. Tomato liquidity created liquidity. Tomato liquidity left in the market by Raj. When he put up his hoarding saying that brother, I am selling tomatoes for ₹-40 per kg. In the same way brother,
[45:30] when a limit order is placed, then the meaning of placing a limit order is this, let's suppose right now bitcoin is trading at 70 lakhs and bitcoin is trading at 70 lakhs and I place a limit order that if bitcoin reaches 60 lakhs then
[45:44] I place a limit order that if bitcoin reaches 60 lakhs then I will sell it, right now it is trading at 70 lakhs, if it reaches 60 lakhs then I will sell it, I have placed this limit order, so I have created liquidity in the market, liquidity of what, liquidity of the order,
[45:59] liquidity of what, liquidity of the order, tomorrow someone will come to buy, tomorrow someone will come to buy, suppose Amit comes and he said that I want to buy bitcoin for 60000, that means the price of 60 is 60 lakhs, sorry, when it reaches the price of 60 lakhs then
[46:13] price of 60 is 60 lakhs, sorry, when it reaches the price of 60 lakhs then also placed a limit order, he said that when it reaches 60 lakhs then buy me mine, he said that when it reaches ₹60 lakhs then sell me mine, what will the exchange do, it will match it. Oh Raj
[46:31] said brother, sale for Rs 60 lakh. Amit has come by paying Rs 60 lakh. So he got his thing. This one sold it and this one bought it. So what does the exchange need? Brother, some
[46:44] people like Raj come and create liquidity and other people will use that liquidity. Only if someone comes to sell will someone be able to buy and only if someone comes to buy will someone be able to sell. So both are liquidity makers. It is not necessary that only the person who comes to sell is
[46:59] creating liquidity. The buyer also did not create liquidity because if buyers do not come then what will the seller do? What will the buyer do if the seller does not come? Ok? So whenever we place a limit order, whether on buy or sell, we call it that we are
[47:14] market makers. So when you are a market maker, a liquidity maker, you are charged a maker fee and the maker fee is always lower compared to the taker. Ok? I will tell you how much it is. Now the second one happens. The second is taker fee.
[47:30] What is taker fee? Just the opposite of this. Well, how much is the maker fee? I did not tell you this. Let me tell you this. Coin DCX has a maker fee of 0.02%. But if we keep the link in the description, it is a discounted link.
[47:44] If you have opened an account through that link, then you get 20% discount on this fee in the first month. It is available on both maker fee and taker fee. So what will be the fee in this case? Position size plus maker fee plus GST on maker
[48:00] fee. Suppose your position size is ₹10,000. Suppose you take leverage or take leverage or not. The total position size is ₹10,000. ₹1,000 becomes 0.040% i.e. ₹2. This ₹2 is your maker fee. This is the brokerage that the exchange
[48:16] This is the brokerage that the exchange earns. And on this brokerage, the government will charge 18% GST on this maker fee. That means the government will take 36 paise, so the maker fee is ₹2 and GST is 36 paise on it, so this becomes your fee if you are placing a limit order,
[48:31] but if you are placing a market order, well, I have told you in spot, this much is charged approximately in spot, but if you are placing a market order, then you are taking someone's ready-made liquidity, brother Raj put up a board saying that he will give tomatoes for ₹40 per kg
[48:45] and you are going and buying firecrackers, so not contributing anything to the market. You are going and buying it immediately. You also place a limit order and if it reaches this much then I will buy it. If there was a match there, it
[49:01] means you created an atmosphere in the market. There was a crowd in the market. You Amit went, it is not the job of creating a crowd. He entered the market and picked up tomatoes worth ₹40 per kg and left. He is a maker-taker. He has come empty handed to take it. He is not giving anything. So the taker fee is always higher.
[49:15] Ok? Coin [nasal sound] D6 has a taker fee of 0.05%, this will get a 20% link we have given in the description, then it means 0.040%
[49:27] and on that there is 18% GST as I told you. Correct? Now let's come to the funding fee. Please understand this carefully. Sir, what is funding fee ?
[49:39] This session has been very long. I know. But still let me explain the funding fee. See what the funding fee is? Futures trading in crypto is a perpetual trade. It is a perpetual contract. Perpetual
[49:51] contract means that this contract never expires. For example, if you go to the stock market, the contract expires in a week. that broker will sell it. If the contract is for a month, then if you have to sell within the month, the
[50:05] broker will sell it. There is no such limit here. You can no such limit here. You can exchange can only liquidate on the price conditions we have mentioned.
[50:19] If the price does not move against you by that much percentage as per the leverage, then the exchange will never sell it.
[50:33] There is a fee and you also earn the fee. Both. That is called funding fee. What does funding fee mean ? Understand it like this. There are many tomato vendors on one side of a village. There are many tomato vendors on one side of a village. There are
[50:47] many tomato sellers. There are fewer tomato sellers in a market. Ok? So what does the village head say? Friend, there are many tomato sellers in this market. There are fewer tomato sellers in this market. So you do one thing, whatever customer comes,
[51:02] send some here also. Poor guy, he has less tomatoes. It does not have many customers. So the thing went from here to the weaker one. Meaning, if the thing with a higher number went over the thing with a lower number, then the smaller one got the benefit because there was
[51:17] more of it here. If tomorrow it decreases here or increases here, then the thing on this side will go here and the thing on this side will benefit. The one who gave lost and the one who took benefited.
[51:29] gave lost and the one who took benefited. Now let me explain this in trading language. What happens? Scenario One. There will be only two scenarios in this. It will either be a buy or a sell. Sir, positive funding rate means when there is a bullish market,
[51:43] market is going upwards, then of course most of the people would be most of the people would be sitting with long positions, okay, the market is bullish, people are sitting with long positions, at that time where are most of the people, on the
[51:58] long side, less people are on the short side, so all the traders who are sitting on the long side, all those side, so all the traders who are sitting on the long side, all those traders will pay the funding fee to the traders will pay the funding fee to the short side. Correct? Those who are long will
[52:12] pay, those who are short will receive. So, for the short side, all the traders sitting on short have earned money. Even though he might be incurring losses from trading, he earned money from funding fees. Yes, there was an extra charge for the long one in that case.
[52:27] Because there was a lot of crowd at Long. That 's why Short was given an incentive. Ok ? So that if someone comes short, there is balance. Now the second scenario is just the Now the second scenario is just the opposite. Suppose the market is moving bearish. There
[52:39] is more in short. Nice short here, right? There are more people in short. There are fewer people in Long. So who will pay the fees in that case? Those short will give to those long. Correct? At that time the long seller made his money. The fee for the short one was charged. So someone says, now you understand
[52:56] what funding fees are? Someone says start the funding fee. Hey, not everyone Someone says start the funding fee. Hey, not everyone feels that way. If you are sitting against the orders with more, then you will earn funding fees and it never happens that
[53:09] if many people are sitting long then Bitcoin or any other coin will go up. It can also come down. So when it came down, the short holder made a profit and on top of that he earned funding fees separately. Similarly, along with long, more people are sitting in short,
[53:24] or any other coin will definitely fall. It goes upstairs too. And when it goes up, what will the long holders earn? You earn profit and you earn funding fees separately, so you have to earn funding fees as well as lose them.
[53:37] lose them. Ok? So I have explained this to you brother. Now let me explain to you the golden rules to save all three fees. Rule One: Always play limit order pace. Not a market order because limit orders cost you less in fees.
[53:50] because limit orders cost you less in fees. This single rule can save you 50-60% of your fees. Check the funding rate and take entry. Take the entry. Every exchange varies. Funding fee, funding rate are the same thing. It keeps changing at different times.
[54:04] thing. It keeps changing at different times. If it is more than 0.05%, it means that the long side will have to pay a lot. Then taking a long position is an expensive deal. Keep long term position in spot. Not in futures. If you want to keep it for a long term of one or two years then
[54:17] keep it in spot. Not in futures. Because futures incur funding fees. Does n't look spot on. Spot does not incur funding fees. Spot for long term, futures for short term. This simple rule creates wealth.
[54:30] Close the position 10 minutes before the fourth funding cycle. Keep this in mind, this is a trick. This is a trick to save money. There is a cycle of funding. Funding fees are charged every 8 hours. Every 8 hours there are right and crypto market is open 24 hours so 8 * 3 = 24 so you are holding for less than 8 hours.
[54:46] so 8 * 3 = 24 so you are holding for less than 8 hours. For example, close the position before 5:20 am to 9:20 pm IST. Funding fees are charged once the 8 hours are over. It gets stuck and it gets found.
[55:03] [nasal sound] So if you sell before 8 hours, you won't get your funding if you sell before 8 hours, you won't get your funding fee. Now after that I will tell you about the tax. Sir, on spot 30% gain is charged flat 30% on the gain but
[55:17] on futures it is charged as per the income slab. If according to your income tax slab, you are in 20% slab then you will be charged 20% here. slab then you will be charged 20% here.
[55:31] you will have to pay the same amount of tax here also. Correct? Those in the lower income slab will see less benefit here. more losses. Correct? One good thing about futures is that it is called business income. This happens in business too.
[55:44] Income tax is levied as per the slab. Spot is flat at 30%. So futures are more beneficial in terms of taxation also. Now comes the turn of the quiz. But let me repeat it once again before the quiz, brother. Please join Telegram.
[55:58] Here all the things are being supported for free. Live sessions are being conducted. Materials are provided. Everything is done by the Free team. You are taught every day. The link is in the description. And you must have Coin DC exchange
[56:11] because where will you trade ? Correct? And I told you about the Bitcoin offer, the one worth ₹100 Bitcoin. Now understand the question of the quiz. You have to write its answer in the comment box. Tax Raj
[56:26] made a profit of 500 in Bitcoin in one financial year. Lost ₹00 in Ethereum. Both are in spot trading. Now tell me how much tax he will have to pay. Zero both will be adjusted Profit Zero or ₹15,000 30% on profit only or ₹00 30% on both or
[56:41] ₹7,500 half-half. I did not understand, please hold it for a while, pause it. Read it again, understand it again. Then go and write the answer. Question 2 is about Bauji's real estate. Bauji bought a flat worth Rs 50 lakh by making a down payment of Rs 5 lakh and
[56:57] took a loan of the remaining Rs 45 lakh. Now tell me how much is this leverage? Write down 5x 9x 10x 45x and tell us. The third question is Bitcoin entry price is 80 lakhs. Raj took 20x leverage. A long position has been taken.
[57:11] What will be its liquidation price? The options are in front of you. Please pause. You will see it and then write it down. Question four is about funding, the Panchayat market is running very bullish. The funding rate is this much. Amit has taken a 10x lock position. What will happen to Amit every 8 hours? These
[57:24] are the options. Read, pause and read. Then write. Next we mentioned that Bitcoin normally moves 1 to 3%. But sometimes it also becomes 8%. So what should be the safe leverage? Please tell me this option.
[57:38] In 2022, Bitcoin fell from ₹50 lakh to ₹15 lakh. Who could have made money in that year ? This option is in front of you. So, this is today's session brother. Please let us know by writing in the comment box. Someone had told you so much detail today. Till date, no
[57:51] one had explained to you about leverage and liquidation. Did anyone explain fees, funding, fees to us? Please let us know by writing in the comment box, brother. And the fourth session is also about to come. brother. And the fourth session is also about to come. Either day after tomorrow or tomorrow you will
[58:03] get the fourth session brother. All other videos are also added to the playlist. So, do check them out and if you are enjoying it, then share it with all the traders and also give its answer. Well, that's all for today.
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