Video XSDIgxQUWrU

[00:03] Today I'm bringing you a masterclass on futures contracts that can be applied to But the most important thing is that we'll cover absolutely everything. We'll go over the

[00:15] agenda, what the topics will be for today, but we'll be covering everything from the most basic concepts, like what settlement is, what the main jin is, what types of futures there are (perpetual or quarterly), etc. We'll be going

[00:28] from the most basic concepts to the final part where I'll show you the interface. We'll see what each of the buttons is for, what a short position is, what a long position is, etc., and we'll do a live test right here. So if you find it

[00:43] interesting, from this point until the end, leave a big like, a good like, leave a big like, a good like, and let's begin.

[01:01] welcome once again to my channel. I 'm Pablo from Krypton Mecsa, and before we futures masterclass, I want to remind you, if you 're not already subscribed to my channel, to do so and activate the bell so you don't miss this. These are the kind of

[01:15] tutorial videos I upload, like these, where I give my executing them, along with my results. I also post interesting news on my Twitter, along with some of

[01:29] least risky entries I consider, so you can use them too, and much more want to miss out, follow me on Twitter and subscribe to my YouTube channel. Okay,

[01:41] let's get started with this futures masterclass. I remind you that this class will cover absolutely all aspects of futures. We'll start with the basics for those who

[01:54] have no idea what it is, then we'll touch on key aspects and basic concepts. Finally, we'll move on to the practical side. We'll look at the interface all the buttons and how to use them with examples. So,

[02:10] this agenda is a kind of syllabus where I'll also include a timestamp in case you're interested in skipping this basic part and going do it, but well, in the agenda we're going to touch on general aspects, as mentioned, it's very

[02:24] important to know the concepts we're going to talk about now, such as leverage, which is a long position or a short position, which often causes a lot of confusion, what a settlement is, what

[02:37] margin is, what the financing rate is, etc., the basic concepts that you're going to hear and see everywhere, and it's important to know them. We're also going to see what the pros and cons are of dealing with perpetual

[02:51] or futures contracts. We're going to see what the requirements are to start trading balance futures, specifically the Vainas platform, which has three main requirements, and then finally the interface, all

[03:04] those buttons, and how to put into practice these positions in the UMH and short positions. Perfect. Within the general concepts, it's very important to know first what a derivative is. A derivative,

[03:19] as I put it here, is a financial instrument that allows you to trade in the market without needing to own the underlying asset it represents. Because futures are a derivative, well, I

[03:31] like to use the analogy that futures contracts, or futures contracts, or perpetual contracts, feel Like Bitcoin or any other cryptocurrency, Bitcoin appears, smells like Bitcoin, looks like

[03:44] Bitcoin, but it's not Bitcoin. We're trading with an asset derived from the spot market. When you buy Bitcoin on your balance sheet,

[03:56] you're buying the cryptocurrency and holding it in your wallet. However, when you trade futures contracts, you're not actually buying that cryptocurrency; you're buying a contract, a piece of paper that claims to be equivalent

[04:09] to that cryptocurrency, but it isn't. This is something you need to be very clear about because it makes a significant difference when the price fluctuates. Whether it goes up or down, you're either losing money or not. It's very

[04:23] down, you're either losing money or not. It's very important to know that if you buy Bitcoin on the spot market, let's say you buy it for 50,000 and now it's worth 40,000, you're losing money, but you still own that Bitcoin.

[04:37] However, when you buy derivatives, whether options (which are also derivatives) or contracts, you buy it for 50,000 and now it's worth 40,000. You're losing money, but you don't actually own that Bitcoin, and there comes a point when it can

[04:50] be liquidated. Which we'll discuss later, but it's important to know that you're not buying Bitcoin itself, but rather a contract. Within these derivatives, there's a wide range of derivatives, but we won't

[05:02] focus on those; we'll simply focus on contracts. We mistakenly call contracts. We mistakenly call all contracts futures, but that's not the case. perpetual contracts, which are the ones we mostly trade, and we all

[05:16] make the mistake of calling perpetual contracts futures, but they're not the same. Anyway, when you hear about futures, we're almost always referring to perpetual contracts. What's the difference?

[05:28] Well, the main difference is that futures have a pre-established expiration date. In almost all futures contracts, they're monthly, quarterly, or semi-annual, and they already have

[05:44] that expiration date. That is, they expire on the last Friday of every month, always the last Friday of every month. That's why you'll see that in my analyses, I sometimes talk about these specific dates, which alter or cause

[06:00] significant volatility in the price of Bitcoin, because the contracts expire on the 20th of Futures and options, which are other derivatives, unlike perpetual contracts, do not have an expiration date. It's important to understand that

[06:17] perpetual contracts can be traded any day, at any time, 365 days a year, and can also be closed at any time. For example, you can open a position right now and close it within a

[06:32] something you can't do with futures. Futures have an expiration date, so once you've acquired a futures contract, you can't

[06:44] until the expiration date, which is the last Friday of each month. Another difference is that perpetual contracts have a funding fee, also called a funding rate. We'll call it a commission. It's a fee that

[06:58] must be paid every eight hours; we'll see how much it is later. Therefore, it's not a good idea or strategy to have a perpetual contract open for months because you'll have to

[07:12] perpetual contract open for months because you'll have to Perpetual contracts are typically traded in hours, days, or weeks at most because, as I mentioned, this fee must be paid.

[07:26] Unlike futures, financing doesn't require that, but the contract is automatically settled when we but the contract is automatically settled when we loss or a gain, our position will

[07:41] automatically close on the last Friday of each month, always at 8:00 AM Greenwich Mean Time (GMT). At that time, it will close automatically, regardless of whether we're at a

[07:56] loss or a gain. Finally, perpetual contracts have very high liquidity. We'll see that there's a slight difference between the real price, the spot price of Bitcoin, and the futures price. I'll

[08:12] liquidity is very high; you can practically buy and sell at Futures, on the other hand, lack liquidity. There's a significant variation between the real spot price and the futures price,

[08:28] therefore carrying a bit more risk. In other words, almost everyone trades better with perpetual contracts. The next concept is

[08:40] important to understand because it involves many risks with different leverage methods. I've included this definition, which basically tells us that leverage is a mathematical formula that allows us to borrow money to

[08:55] mathematical formula that allows us to borrow money to open larger positions than the money we have available. So, I have this chart showing the different types of leverage. Balance leverage allows us to leverage

[09:08] up to 125 times. Leverage is represented by this x, which means multiplication. Normally, when we talk about leverage, we refer to 10 x 25 x, that is, 25 times 50.

[09:24] But you'll see it, you'll hear it: it was parked at 10 x 25 x. That hear it: it was parked at 10 x 25 x. That 's leverage. how leverage works, if I had an invested capital

[09:38] of, say, $10, or $100, and I that if I put $100 from my account, the

[09:53] have a buying power of 1,000, meaning with my $100 I'll be able to buy $1,000 worth of cryptocurrency, like Bitcoin for example. Similarly, if I Bitcoin for example. Similarly, if I leverage myself to 50x, I'll put in $100 and

[10:08] 5,000 coins. It allows up to 125x leverage, so if I put in $100 with 125x leverage, I 'll be able to buy the equivalent of 12,500 coins with just my $100. This

[10:25] might seem interesting and attractive at first, but it carries a lot of risk. The more the PNC (Profit, Loss, and Credit) is covered, the greater the risk of being liquidated and losing your of being liquidated and losing your money. Therefore, the only

[10:41] advice I can give you is to be careful, start with very little money, with a dollar or less, and with dollar or less, and with low leverage. Because at the beginning, the mistake we

[10:53] all make is starting with jumps in leverage. It seems like this is easy money, maybe 123 trades don't go well, and we feel like this is easy, and then we start... Leveraging much more is too

[11:06] risky, but why does it represent more risk? Well, what's shown here as the initial margin percentage is an example of how much the price of Bitcoin, or Kryptonite, would have to fluctuate for us to

[11:20] risk being liquidated. For example, if I leverage 10x, it means that if the price of Bitcoin, or whatever cryptocurrency we're trading, fluctuates if the price of Bitcoin, or whatever cryptocurrency we're trading, fluctuates 10% against us, we'll be

[11:35] liquidated. For instance, if I had a long position thinking a long position thinking Bitcoin would go up, but it didn't, but instead went down, then if it drops 10% from our purchase price, we'll be liquidated.

[11:47] And the more leverage we use, the lower this percentage is, therefore, the greater the risk. It's possible that the price of Bitcoin could fluctuate by 10%; it's

[11:59] happened before. We think it's going to go up, and it goes down, so it's possible to have a 10% drop. We've seen this before; the price can drop 20 or 30% in a single day. It 's not that likely, and especially

[12:11] if we do a good analysis, we can avoid or reduce this risk. But what happens? When we use leverage, for example,

[12:23] against us, we will be liquidated. A 1% fluctuation is very easy to calculate. If Bitcoin is always at $50,000, $50,000, a 1% change means $500. That is, if

[12:36] the price of Bitcoin fluctuates by $500 against me, I will be liquidated. And that's very easy to do; $500 is nothing to Vicar. Therefore, we must be aware that just as profits can increase

[12:49] exponentially, the more leverage we use, the greater the risk of being liquidated. Therefore, I have learned from my experience that the best leverage for me is between 10x and

[13:05] 15x, depending on the cryptocurrency, the risk, and my analysis. Anything over 15x is considered excessive and risky leverage. So, that is the recommendation I leave you with.

[13:19] Next concept: open positions, closed positions, and net positions. An open position is very simple to understand. Every time you... You go long or short, you open a long or

[13:36] short position. A position is being opened, which we'll see in the interface. which we'll see in the interface. The bottom of the screen will appear, and it's considered an open position once it reaches that pressure and you

[13:48] wanted to open the position. The closed position, as its name indicates, is a closed position, but there are three ways for this position to be closed. Two ways are that you close it, for example, if you reach a

[14:01] point where you have enough profit and decide to close your position. You can close it completely ( 100%) or you can close it by a percentage: 100%) or you can close it by a percentage: 25%, 50%, 75%, or 100% of the

[14:15] position to take profits. It can also be the opposite: you have losses, you haven't been liquidated yet, but you have significant losses, and you have decided it's better to exit the market and accept those losses by closing your position at a

[14:28] those losses by closing your position at a loss. The next way is through liquidation, as we already saw. There comes a time when the price moves position thinking that the price was going to rise, and it was the opposite. The

[14:42] price started to fall, and it reached a point where Therefore, a closed position is achieved in one of those

[14:54] three ways. Finally, the net position is an interesting concept to net position is an interesting concept to understand because it means balance. It allows us to calculate a weighted average of different entries we make

[15:08] in the same cryptocurrency. For example, suppose you buy Bitcoin when it costs ten thousand dollars. You open a long position at ten thousand dollars, and then you reopen it. The price of Bitcoin started to rise,

[15:23] The price of Bitcoin started to rise, reaching 20,000, and you decide to open another position at 20,000 without closing the other one. That is, you have one position at 10,000 and another at 20,000. These aren't two different positions; they become

[15:36] the same. They are averaged and weighted, and your entry price will be 15,000. That is, the sum of your first and second positions divided by two. That is

[15:48] the net position. The same thing happens when the price goes down. Sometimes I've done it myself; it's a technique I sometimes use. Let's say... I entered Vito at 50,000 thinking it would go up, so I would have a long position, but suddenly it

[16:02] a long position, but suddenly it dropped to 45,000. My position and my liquidation price, let's say, are at 43, and the price is at 45, meaning it's already quite close. What I could do is add capital, that is, open another

[16:16] position in Nou, but at a price lower than the one I entered, to lower my entry price and thus lower my liquidation price. Instead of my pressure and action being at 43, maybe I can get it down to 40, and thus keep

[16:29] adding capital so I don't get liquidated. This also carries many risks; it's a bit more advanced, so for now I don't recommend it. If you want me to delve deeper into this strategy, which I emphasize I don't

[16:42] always use; it depends on the asset and the market conditions, then let me know in the comments, and I could explain a little more about it. But the important thing is the net position, which is a weighting, an average of the

[16:55] four, or five entries in the same cryptocurrency, and an average entry price is calculated. That affects your liquidation price. The

[17:08] Marin. Basically, it's the money we're going to contribute. It's open a leveraged position. It's the money you're going to contribute to open the position, whether it's one dollar or ten dollars. Then there's the leverage involved, and

[17:24] balance becomes the open position. But the margin is your money, the money you're going to use to enter the market from your own pocket. The next NLP concept, which you'll see

[17:40] everywhere, is " realize." In realize." In

[17:54] you've already received, money you've already obtained as profits or losses. " On-realize" in NLP means unrealized profits and losses. "FICA" is the money you're gaining or losing, but since the position hasn't closed yet, it's still

[18:09] there in the market. It wo n't be realized; that is, you wo n't recognize that money as a loss or a gain until the position closes. That's known as "on-realize."

[18:23] And lastly, there's the maintenance margin, which is very important. Perhaps one of the most important aspects is the minimum amount of money you should have in your position to cover at least the maintenance margin and

[18:38] cover at least the maintenance margin and If you have, let's say, a position with one dollar, but you've held that position for five weeks, since they charge commissions every eight hours, that

[18:52] dollar you put in, which is what held the position every eight hours, will keep decreasing. You'll have to pay commissions every eight hours. So, after five weeks, a month, that dollar you put in will keep

[19:06] able to cover the maintenance margin and the commission, and that position will automatically be closed. That's why it's important to have control, a more or less estimated date, a target, an estimated price

[19:19] to see when your position will be closed and avoid paying these maintenance margins, these commissions, these commissions every eight hours. In

[19:34] a pretty easy concept to understand. Practically everyone, when we enter the stock market, with a long position, wants to buy low and sell low. That's practically what everyone wants when you trade

[19:47] perpetual or futures contracts. A long position means exactly that: opening a position thinking the price will rise and you'll be able to sell at a profit, taking the difference between the price you bought and the

[20:03] profit, your gain. A long position is represented by the buy button, a green button. We'll see it like that in the interface a little later. But

[20:16] unlike short positions, which are represented by the sell button, a bar, or a diagonal line, a short position is basically about making money when the market falls, that is, trading against

[20:33] the market. But what happens? Because this is a somewhat ambiguous concept, a little difficult to understand. So, if you're interested in knowing what's happening—because it can be a little confusing, why am I

[20:46] winning when everyone else is losing?—well, I'm going to explain it in broad strokes so you understand what's happening in the background. Let's suppose the price of Bitcoin today is ten thousand

[21:02] dollars. It's a supposition, a round number, ten thousand, to make it a little round number, ten thousand, to make it a little easier to understand when you open a short position. What we're

[21:15] really doing is asking for something, like a Bitcoin. I this moment, I'm borrowing from you, is worth 10,000 dollars. I have the Bitcoin, I click on "Put In," and what I'm doing is that I

[21:31] 'm automatically selling that borrowed Bitcoin, and in return, I'm getting 10,000 dollars. I owe Vainas one Bitcoin, but I have the 10,000 dollars I just sold the Bitcoin for. When we take a

[21:45] short position, we do it thinking that the market is going to fall. If you think it's going to go up, don't take one; it's a short position, take a long position. So what's happening here is that we bought the Bitcoin, Vainas gave us the Bitcoin, we sold it, we received

[22:01] starts to fall, just as we expected. Let's suppose that after a few days, the price of Bitcoin reaches 5,000. It's no longer worth 10,000; now it's worth 5,000, but we have the 10,000 of the bitcoin

[22:17] we sold a few days ago. What are we going to do to close the position? What we 're doing is buying back that bitcoin we owe. Now we have 10,000 dollars, but the disk is worth 5,000. Therefore, with those 10,000, we're going to buy

[22:31] one bitcoin. We're going to give it back to Vainas because that's what Bitcoin is worth, and profit. That's what's shorting. But it's much easier to understand that you

[22:45] 're betting against the market, and you win if you lose. If the market falls, you win if you lose. If the market falls, you

[23:04] win. It's much easier to understand, but I wanted to explain a little bit about what's happening in the background and why it's represented by this red sell button. When you open a short position, or when you're selling, you're selling what Vainas lent you. You're exchanging it for dollars to buy it back at a lower price, and that difference is your profit. Now, the next concept is liquidation. This is simply the formula used to calculate

[23:17] liquidation. This is only for your information; it's not something we open a position in pods or on the percentage, the exact price at which we'll be liquidated,

[23:30] and also a percentage so we know how close or far we are from being liquidated. But anyway, to explain, the initial margin plus realized profits and losses plus realized gains

[23:44] and losses must be less than the explained. Don't worry too much about this; as I mentioned, this information is provided when you open the position. Then there's the funding rate, which I already

[23:58] commission we have to pay every eight hours on our perpetual contract positions. What are the benefits and risks of trading perpetual and futures contracts? Well, first, the pros: they allow us to

[24:14] trade against the market. We've already seen what a short position is, and we've seen that we can trade against the market, something we can't do with the spot market. Therefore, when you're a pro, you can make money both on rising and

[24:28] falling prices. So, in a bear market, for example, we know that Bitcoin normally moves in cycles and We're now in the final part of the bull market, but even when the bear market arrives, we'll still be able to make

[24:40] money by shorting. Leverage, when used correctly and with good risk management, is a very important advantage. We'll see ourselves using quite a bit of leverage, as I've already

[24:52] mentioned in my opinion, but leverage will allow us to multiply our money much faster. Hedging is a topic I won't cover in this video; it's much more advanced. But

[25:05] broadly speaking, hedging means we can trade long and short simultaneously in the same cryptocurrency. It's a much more advanced topic, so I wo n't go into it, but it's an important advantage to consider. Of

[25:19] course, among the disadvantages, trading leveraged cryptocurrencies is very risky. It has a very high probability of volatility. We already know that Bitcoin and any cryptocurrency can fall 60, 70, or even 80

[25:33] percent in a bear market, so even in the spot market it's risky. Imagine with leverage! And then, of course, there are the commissions. 8 hours, because it doesn't allow you to have open positions for very

[25:46] How to start? What are the requirements? There are three main requirements. The first is to already have an account with Balance, and then you have to create a already have a Balance account, I 'll leave an affiliate link in the description of this

[26:03] video where you'll get a 20% discount on commissions every time you buy and sell with this link. If you already have a Balance account, you'll have to create a futures account. We'll see

[26:19] how to do that. The next requirement is that once you have your account, you'll go and the first thing that will appear is an explanatory video. You'll have to

[26:31] very risky, that it's at your own risk and discretion. You accept, and they'll give you a futures exam. I've already taken it, so I can't show it to you. You'll have to study

[26:46] beforehand for this knowledge test. I'll also leave a guide from Balance Academy in the description, where they explain all this about futures so you

[26:59] can answer correctly. Once you've answered this test correctly, you'll be able to trade, but you'll need funds in your futures wallet. Remember that Vainas has different

[27:13] wallets, including the spot wallet, the majin wallet, and the you have money—let's say you have $100 in spot funds—what you'll have to do is transfer that amount and the USP to your futures wallet. There are no

[27:28] commissions; it's instant, meaning it doesn't take even a second. It happens immediately. But there is one step you have to take, and I'll show you how to do it in the interface. Those are the three requirements. They're easy; let's say the

[27:42] most difficult is the knowledge test. If you fail it, if you don't pass, if you make a mistake—although it seems like it's a matter of days—if you make even one mistake, you won't be able to continue. You'll have to repeat it as many times as necessary

[27:55] until you get all the answers right. I recommend once again that you read this article by Vaina, "Get Out of Me," to expand on this information about futures so you can answer this exam correctly. Okay, let's

[28:11] begin. Let's see what the interface is like and what the different options and buttons are. The first thing we're going to do is, once we're in Balance 1 and we have our account and logged in, we'll

[28:25] go to the top where it says "Derivatives." This will open a menu. The first two options are simply "Informative." This information tells us about futures and other interesting topics, and if you want to click on it, I

[28:38] recommend it. But then the third and fourth options difference between these two? The first one says "S Futures" and "S M Futures." The most commonly used option is the easiest to understand because we're going to

[28:54] use stablecoins to trade. Stablecoins are USB, and that means are USB, and that means the stablecoin of Baines. What does this mean? Well, the positions we open will be with

[29:07] dollars, in USB, and any profits we make will also be received in this stablecoin, in USB. Unlike this Coin M futures, we're going to trade with cryptocurrencies, for example, Bitcoin. So we're going to open

[29:22] an exposure with Bitcoin. We'll use Bitcoin as collateral, but any profits we make will be received in Bitcoin or whatever cryptocurrency we're using. There are several ways to trade, but this is a bit more difficult to understand. So, if you're just

[29:35] starting out—which I assume you are since you're watching this video—I recommend starting with dollars and USB. Once you understand the risk and how this works, you can move on. For now, for

[29:49] this demonstration, I'm going to click on USB, and it will open the platform interface, which is very similar to the spot market. I assume you're already familiar with it. If you're looking at futures, it's because you already know the

[30:04] spot market. If not, this is a very advanced step, and I do n't recommend you continue. If you already know the spot market, you'll see that this is very similar. The order of things is slightly different. For example, in the spot market, the chart is in the middle, and the order book

[30:18] is on the left, but here it's on the right, etc. It's slightly different, but the right, etc. It's slightly different, but very similar to what we started with. Here in the upper left, we see TCS/DT, which is the pair we're

[30:31] currently using. But we have the option to search for our pair. If we search for a pair, for example, BTS/USB, all the available Bitcoin options will appear, including etc., U.S. We already talked about the quarterly TT, and this

[30:47] expiration date is March 25th. We have the same option with BTS USB, no, not the USB TT directly. It's also quarterly here. We also have this one that says quarterly, but it's actually

[31:03] semi-annual because it would expire on June 24th. Then there's the one star, which is the one we normally trade, the Bitcoin US TT

[31:15] Perpetual. That is, I can open and close it whenever I want. We click here, and it opens the fifth option. We have different timeframes here: 15 minutes, one hour, one day, etc. Up here, we have

[31:30] two different prices. One says "Mark Price" and the other " Index Price." They're not the same; they vary very slightly.

[31:42] that the Mark Price is the spot price of Bitcoin, and the Index Price is the futures price. There's a small variation, almost imperceptible, so take it into account. And then here on the right, it

[31:54] says "Financing" and "Counter." This is the financing, the commissions we have. You pay 0.01 percent of your position every eight hours. If you enter with $100 leveraged 10x, that

[32:10] means your position is $1,000. Therefore, you'll pay commissions $100 you invested, but on the $1,000 that your buying power represents. If you

[32:23] have 100x leverage, it means that with $100 you could buy $10,000. Therefore, you'll pay commissions on those $10,000. This is the counter; every eight hours a countdown resets.

[32:36] Here it tells us that there's one hour and 46 minutes left to pay the next commission. The rest is important. We have important. We have the original chart here, but it also gives us

[32:48] the option of the training view chart. This takes a while to load, and sometimes it has many errors; sometimes it never loads. Therefore, we have to original. However, you can use the trading view, which I recommend because

[33:03] here we can do different analyses. We can set trend lines with the tools that appear here. We can measure percentage gains, we can draw diagrams, etc. We can use

[33:16] interesting tools like Fibonacci retracements or extensions, etc., a bit more advanced, and use them. This is interesting. What else do we have here on the right? We have these two very

[33:31] important options. 10x is the leverage. I select it like this; by default, it's set to 20x. Every time we open a new crypto account, it's set to 20x, and here you can adjust it one by one by clicking here. You can adjust it

[33:45] by one by clicking here. You can adjust it with this bar up to 125x. I mentioned that I set it to 10x because that's the leverage I use, but this is your decision. The more

[34:01] leverage, the more risk, remember that. Second, we have this option that says "isolated." Clicking it gives us two options: "crossed" and "isolated." It gives us a description or definition of what each one is.

[34:17] important that when you're starting out, you change it to "isolated." By default, when you enter this, " crossed" is selected. But what does it It means that if we have in our In a

[34:32] futures wallet, let's say we have $300 but open a $5 position. If "isolated" is selected and we are liquidated, it means we will only be liquidated for the amount of money in the

[34:48] position, which in this case is $5. The other $295 in the wallet will remain unaffected. However, if we change it to "cross," it means that even though our position is only $5,

[35:03] we are offering all the money in our wallet, the remaining $295, as collateral. If we are liquidated, we will lose absolutely everything, not just what's in the position.

[35:18] Therefore, this is very risky, especially if you are just starting out. Always select " isolated," click "confirm," and remember that every time you change it, especially if you're using a cryptocurrency you haven't used before,

[35:31] you will have to change it manually. For example, if I go here and select " I've never used Dodge with 500 UST Perpetual,"

[35:43] and we see that it has automatically changed to "cross" and 20x, you will have to change it manually; you will have to set it to "isolated." Confirm and adjust the leverage to what I want.

[35:58] to explain this because I already explained it in my video on how to buy and sell cryptocurrencies with a spot balance. I already explained that, so if you're in futures, you should already know what a limit is, what a market is, what a stable MIT is, and what a

[36:11] stop market is. If you don't know, watch my video. I'll leave it here above so I don't have to explain it in this video and make it too long. Here we have the entry price, now we'll see the amount, the money, etc. As we can

[36:24] see, it seems I have zero dollars available in my futures wallet. That's how you'll have it when you first open the account. How do we transfer money to our futures wallet? We go down here where it says "

[36:39] margin ratio." Below that, it says "buy," which connects you to "convert" or "transfer." We're going to click on "transfer," and here it asks us where we want to transfer from. We have different options, but by default, "

[36:53] fiat" and "spot" are already selected. Where do we want to send from? By default, it shows SDM futures, but we can change the currency. We can select any currency, but in this case, we want USP, and here we see the money we have

[37:06] available in our In this case, I have $327 in my spot wallet. I want to transfer it all, so I'll click on "max." I click on "confirm." Here, the amount is displayed, but we could put, for example, just $100 out of

[37:21] these $300. I want the max, so I enter it. There's no need to click "confirm." We wait a couple of seconds, and it automatically tells us here: " Wallet balance: 327." It also says " Available: 327." It's automatic,

[37:36] instant, and there are no fees. We can send this back to our margin wallet or any other wallet. It's free, fast, and easy. Okay, let's do an example with Cardano. I have a USB here.

[37:53] I've already switched to the training view chart, where I've identified a small range. I'm using a one-hour chart. Futures are used for scalping, meaning you can open or close trades in a matter of minutes,

[38:05] you can open or close trades in a matter of minutes, hours or days; I rarely leave a trade open for weeks. But I like to trade on an hourly chart, and I've identified this small range where

[38:18] every time Cardano has touched this 130 support, it has... resistance around the 137-138 zone, so right now it's

[38:32] in the middle of that range. But I want to show you how we would open the first trade. We have our money here, 327 dollars. How will we open a long position? Well, the first thing we would have to do is

[38:47] identify the price at which we want to enter. If we want to place a limit order, we change this price. A market order, you know, is to enter, buy, right at the current price. What's happening? I recommend that you always

[39:01] trade with limit orders, firstly because it's a way to better plan your strategy, to think about whether if the price reaches a certain point, we'll enter or not; if it doesn't reach that price, we won't enter. And that's a way to

[39:16] better manage your strategy. But also because you pay fewer commissions. We already saw that commissions are paid both when we open a position and when we close it, and during the time it's open, commissions are paid every eight

[39:30] hours. If you enter with market orders at the price, you're going to pay more are low, and we'll see it here. The commission level says taker. Taker pays 0.04 percent. The TEI (the trader) is the one who enters market orders. The

[39:47] maker is the one who places limit orders and pays half, 0.02%. We take both; they're low, but with limit orders, we pay half. Therefore, I always, or almost always, use limit orders. Perfect. We see that it's in this range, and I

[40:03] say, "I want to open a long position as long as the price falls long position as long as the price falls to 130, which we have here." Perfect. I would put here in the price field. I delete this and put 130, the amount of dollars we

[40:17] want for the position. This is important that we understand because it's not the amount of dollars we're going to put in, but the total amount of our position. Remember that I'm leveraged at 10x. Therefore, if I

[40:30] want to put, for example, 10 dollars of my own at 10x, the position would be 100 dollars. And here we can see the cost; it tells us it will be 9.88, because not 10 dollars,

[40:42] because of the commissions they charge me. In this case, it's 2 cents; it's not much, but they're going to charge it, and they're also going to charge us when we close it. Therefore, we have to... Consider this if we're leveraged, for example, at 12x or 18x,

[40:56] than with Wiese. Think about the amount of your position; you can always the bar that shows the percentage of your money out of the total.

[41:08] Here I have $327. What percentage of that total will we use for this position? 50%, 70%, etc.? We can adjust it here. Also, down below

[41:20] where it says "cost," we see the amount that percentage represents. For example, 2 percentage represents. For example, 2 % represents $6.50 of this total. We can adjust it by modifying it; the

[41:33] costs are updated below. 68, half would be $ 163, etc. Here we could click on "market order" if we wanted, but I'm going to use a limit order. Therefore, I want to open a position, for example, of

[41:49] open a position, for example, of $100, which represents... So, 9.97 of mine at this price. 1 with the year was modified, let's put one with 30. let's put one with 30. Perfect, I click on buy

[42:08] in positions. The positions, when the order has already been executed and is already open, having profits or losses, open orders are simply the limit order that we have sent to Vainas. It puts here date and time, symbol,

[42:21] perpetual fairy, against the VST, limit order type, buy, that is, it is your achievement at the price that we are going to buy when it reaches 130, quantity 130, quantity 98.83, the total of the complete position

[42:35] 20. These two points, reduction, read post only, you are not going to apply them here right now because it is a little more advanced, we will see it later in another video, and then TPS. This is quite important, it means take profit and stop loss, to take

[42:50] profits or to have losses. I recommend that you activate it beforehand. How do you activate it beforehand? Well, with this little button. Once we click here we can put all the necessary parameters so that our order has its take

[43:06] profit and its stop loss. It is the equivalent in the spot market, it is the equivalent of the orders or with nothing that here It's not called "few" in ATP SL; if we haven't set it yet, we won't be able to put it here. But we can cancel the operation; they don't

[43:20] charge us anything. They cancel it, and we can execute it again. We set it to can execute it again. We set it to

[43:32] take profit when the price reaches 1.30. What amount? Well, let's put $100. Take profit: remember, this isn't set like this; we set it, we check it, and reaches this resistance level, where it's been without Landon, this range which is without Landon, this range which is 1.1, point 37, 79. And the stop loss: let's

[43:48] 98, my order will automatically be closed. I'll accept the losses; I'm going to exit at a loss, but it's to prevent the price from falling and losing more. That's what the stop loss is for. So, I already

[44:04] have all these parameters. I click on buy, the the stop loss and the take profit. We click on view, and click on view, and this window opens, telling us that

[44:19] our take profit is at this level, at this price. Modifying it tells us that if we exit at this price, we'll get this amount of money. I entered with $100, I would exit at $104, making a profit of about

[44:32] $4. Here we can modify it, supposing I don't want to earn $104, I want to earn more. So I could modify it and put here, " more. So I could modify it and put here, " I'll exit when it's at $144," "at around $50,"

[44:44] etc. You can modify it as many times as you want. The stop loss also tells us this; this is the price at which we'll exit, and this would be the money we'd have Therefore, I would have lost almost three dollars. You can also modify it,

[45:00] for example, to 99 or 24, etc. Here we'll put, for example, 137, and if I click confirm,

[45:12] this is modified. We can see it again here; we can modify it again, and there's no problem. When the position, which isn't open now, opens, it will open the moment it reaches the price I indicated. When it

[45:25] opens, it will appear here in positions, and we'll also be able to modify the take profit and stop. I recommend setting stop-loss orders as soon as you open a position. This allows you to go to sleep

[45:39] with the order open and waiting to be executed. Imagine I leave the order like this, the price is in the middle of the range, I go to sleep, and while I'm sleeping, my order is executed without me noticing.

[45:53] If I hadn't set a stop-loss, the price might continue to fall and wipe out my account. However, I already have the take- profit and stop-loss orders in place, so I can go to sleep more or less peacefully, knowing what I could lose or

[46:05] gain. So that's what I recommend: always set take-profit and stop-loss orders, at least.

[46:17] that if we want to open a limit order, the long order should be below the current price. For example, right now at 1.3246, the limit order should be at any price below this: 1.3240, 1.31, 1.30,

[46:33] 1.28. We'll place it above this price, for example, 1.33 and 1.34. We'll put it here, and it will execute as a market order. That is, it won't

[46:45] when it reaches that price, the long position won't be activated. It won't execute Therefore, if what you want is a limit order, the limit for longs should be below this price, and for longs, above this price. Let's do an

[47:02] example trade just to show you what the parameters are and what appears once the position is open. So, I'm going to position is open. So, I'm going to put the loading price in. It's 1.32. It's going

[47:15] up a little. I'm going to set it to execute at 1.32. Let's make the position $10. That is, I'm going to put 0.94. Okay, it's gone down a little. So, I'll click, and you'll see it's

[47:31] at 1.32. I click here, and it will execute immediately. Now that I've clicked, I have positions, and it looks the same here. Click here. Perpetual leverage: Here it shows that I'm at 10x the size of my position, which is 9

[47:46] 10x the size of my position, which is 9 points, or $27. Of that, my is 0.94 cents. This is the money I put in, and as the hours pass, every eight hours, this margin will be

[48:01] reduced by the commissions we will be paying. Here we have the entry price, the price at which we bought, which was 1.3252. If you noticed, it was executed at the market order. The mark price is the current price; that is,

[48:17] I entered at 1.3252, and now it's at 1.3245. Between the long position, it shows the liquidation price, meaning that if the liquidation price doesn't drop to 1.1988,

[48:29] I lose 100% of the money I put in here, which in this case is 94 cents. The which in this case is 94 cents. The margin percentage: this is the risk we currently have, 6.42%. It's not much; the closer to

[48:43] 6.42%. It's not much; the closer to zero we are, the better. The closer to 100%, which means we are... With a lot of risk, and here you'll see NLP, which shows profit and loss,

[48:57] measured as a percentage. When it appears here in red, it means I'm losing; when it appears in green, it means I'm winning. You can see that it varies a lot, practically every second. Right now, today it's a

[49:10] 0.15 percent loss, which is equivalent to one cent, 0.23, etc. If you noticed, to open this position, I did n't put a take profit or stop loss. I can do it from here by clicking on this button that says "

[49:25] take profit stop loss for the position." If I click here, we can put exactly the same parameters as before. For example, it tells us that I bought at 1.32. Let's say I want to close the position at 1.34, and it tells us that

[49:40] the profit will be 0.10. Let's sit down; that seems very little. I'm just going to do that. Today I want to close at 1.40. That is, when the price reaches this price, it will be sold, and I will obtain these profits. And for the stop loss, I will put

[49:59] I will assume a I'm down 11 cents, down 11 cents, I click confirm and the orders are placed. I can modify them again here. If I click here, I can

[50:13] want to cancel them, I click confirm, I don't have anything set anymore. We confirm, I don't have anything set anymore. We can also, for example, see here what percentage of our position we want to close at a certain price.

[50:26] Let's say I want to close 50 percent of my position when the price doesn't reach, for example, 150. I enter that and click limit. If

[50:38] I click limit, notice that I have open orders here. But then I click limit here, an order has been opened. Here I have an open order. My position is open here at a 2 percent loss. I click

[50:53] open order and it tells us that the order will be a 50% sell, which is $14.50. When it reaches this price, which indicates it's 1.50, we

[51:08] can leave this order open or we can close it completely here with this trash can. We simply close it. Nothing happens. We go back to my position and see that the loss is still 1% - 1% more. or less, which is equivalent to 2 cents, and we can

[51:22] close the same. Well, here we can click on 100% and we can exactly close a percentage of our operation: 175, 50%, 5%, etc. Market order. That is, at this very moment, if I click on market, it will close

[51:38] a part of the position I have chosen, 100%, etc. short position, but with another currency. To show you, I'm going to choose Matic, for example. I go to the search engine, type Matic U S TT Perpetual, click, and

[51:55] the chart changes. What is the first thing we have to do? Change this cross, we change it to isolated. Don't forget that whenever we open or trade with new currencies that we have n't traded before, it will default to a

[52:10] cross at 20x. I'm going to lower it to 10x. You adjust it as you wish. And we are going to open a short position. To open it in a limit order, we are going to put the order above this price. We are going to put the two

[52:25] dots, 37 8, for example. What quantity? 10 Dollars that will be equivalent to 95 cents. I click on sell, and down here we already have an open order. It hasn't been executed yet. This price is a sell order, that is,

[52:41] a short. And now we simply have to wait for the order to be executed. entry price only so that it would execute. It's quick, but also, I'm not 'm simply executing it so that you can see how short selling works. But

[52:56] to trade short, you have to do your own analysis.

[53:10] We saw here a kind of yellow circle; I don't know if you saw it. And now we have two positions here: one that appears here in green, which means I'm long, or here we also have this green line and this red one, which means it's a

[53:25] green line and this red one, which means it's a 10x short matic, and red 10x short matic, and red because it's a short. And both are currently at a loss. To close it, I would continue. If I want to exit, I would go to the

[53:38] market edge, just as I showed you. It's not something like this. If I want to go over the limit, I can put a take profit here with a stop loss, or I can exit here by pressing a percentage here, for example. Let's say

[53:52] the price is 135, and if I click on "limit," the order will open here. The same applies to Matic. That's all

[54:04] for today. Thank you so much for watching this video. Let me know in the comments if you found it interesting. It took me quite a while to make, and it's a fairly long video because we go from the very basics to something a little more advanced. Let me know

[54:17] in the comments if you have any questions, if you'd like me to make a more advanced video with other strategies, or if you'd like me to share my own strategy. And above all, if you liked this video, please give it a big thumbs up! Do

[54:30] n't forget to follow me on Twitter and subscribe to my channel. See you in the next episode! Bye!

[54:52] [Music] Ah [ Ah [ Music]