Video ZMsWFiyh2eU

[00:02] you're probably interested in learning how futures work and how we can invest in the markets with this tool, which in my opinion is one of the best investment tools if used correctly.

[00:14] money if we use it incorrectly. That's why today I'm going to show you how to use it in the best way, minimizing risk as much as possible. As we learn, we'll then be able to unlock the

[00:28] full potential of this tool. To understand it well from the beginning, we first need to understand what futures, or better called futures contracts, are. Because that's what they are: contracts on the

[00:41] price of an asset. Let's say we have Bitcoin. We're not going to be buying and selling Bitcoin with these futures contracts. What we're going to be doing is trading the price of Bitcoin, whether it will go up or

[00:54] down. Because yes, we can make money with futures contracts if the price of an asset goes down. So that's the main thing we need to understand: when we're buying or selling Bitcoin in futures, we

[01:06] 're never actually buying or selling the cryptocurrency itself, but rather opening and closing a contract on the price of that asset. Or rather, in the movement that the inactive price will have, if we open a contract believing that the

[01:19] price will rise, we are opening a long position, a long trade, or a buy position—all three. It's well said that if we believe make money when the price drops,

[01:32] we have to open a sell order, a short position, or a short position. That way, if the price of Bitcoin or any asset we want starts to fall, we will be making money with that futures contract.

[01:45] Basically, that's it: we are trusting that the future price will be different, whether it goes up or down. Generally, these futures contracts cryptocurrencies, they are perpetual. What does that mean? They don't have an expiration date; they are

[01:58] continuous because the cryptocurrency market operates 24 hours a day, 7 days a week. Therefore, we trade these contracts, but they are unlimited. If we want, we can leave them open in

[02:11] perpetuity. Another difference with the traditional market, where we only buy and sell cryptocurrencies, is that we also have leverage. What is leverage? Well, it's something that allows us to maximize our

[02:24] capital in several ways. For example, if we have $10, we can open orders in the market for, say, $ 100 or $200. This will allow us to earn larger amounts with less capital, and we won't lose more than the

[02:38] $10 we have. But there's something to keep in mind: that $10 can disappear much faster than if we weren't using leverage. We'll see this in practice, but first, let's see where we'll be trading

[02:51] futures contracts: on the Binance platform, the number one Binance platform, the number one world for security, users, tools, and everything else. Yes, the largest and most reliable. If you don't have an account, you

[03:04] can open one using the link I've included below in the description and pinned comment. You'll get discounts on trading fees; money you'll save and can use for anything else. I

[03:17] highly recommend creating your account there. Once you open the email address or phone number, check the box, and click " Next." You can also continue with Google or Apple. Or you can use Teleran to open the

[03:30] account more easily. After that, verify your account and so on. If you want to learn how to add money to the account, buy and sell cryptocurrencies, I recommend that playlist that's showing up there on the screen,

[03:43] or you can go to my YouTube channel and here in the Playlist section you'll find several tutorial videos from scratch, like this one here: Binance tutorials for your cell phone, or learn to invest in Binance from

[03:56] scratch to watch on your computer, whichever you prefer. They're quite comprehensive, but we're updating with this new list. have funds in it, and so on, what we're going to do is go here where it says

[04:09] Contracts, or it might also say Futures, depending on your language. You from here in the upper right; I have it in Spanish (Argentina). Go to the section that says Contracts and you have to select the one that says

[04:21] USDM. Yes, because there you'll be able to trade contracts that settle in USDT and USDC, which are stable cryptocurrencies. Much simpler so you can understand, just click there. And the next screen will open once you click

[04:34] there. Don't panic if you see a lot of we're going to go through it step by step to understand what each thing is. The first thing we need to see is where we are. For example, if we go here, it says BTC USDT. That's the

[04:50] first letters are from the Bitcoin/ BTC pair, and the second is what we're comparing it to. In this case, USDT is a cryptocurrency that replicates the US dollar. In other words, we're seeing Bitcoin expressed in dollars. On the

[05:05] right, we can see it's worth 98650. If we hover here, we see that we can look for another pair, for example, ETH USDT. We click here, and if we click that,

[05:17] we see that the whole chart will change. The whole screen will change to show the Ethereum pair expressed in dollars. We see that Ethereum is now worth $ 2790. But let's go back to Bitcoin because I want to explain it properly from

[05:31] scratch. If we go further to the right, we see the price. Further to the right, we can see that in 24 hours it reached 99.14 and a low of $ 96,100. The trading volume of Bitcoin in those 24 hours was 146,000

[05:47] Bitcoin, which would be about 14 billion dollars. It's insane; a huge amount of money is traded in these pairs. And then... well, more information, a bit more complicated. If we go further down, we can see the Bitcoin chart.

[06:00] Each of these colored lines we see here, green and red, represents a period of time and a price movement. For example, the green lines mean that in that period of time the price went up, and the red lines mean that in that

[06:13] period of time the price went down. How do we know what period of time each of these lines, called Japanese candlesticks, represents? Well, we can see up here where it says "time," we see 15 minutes, one hour, 4 hours, one day, one

[06:26] week. If we look here, the 4- hour one is highlighted, which means we are on a chart with a 4-hour timeframe. This means that each of these Japanese candlesticks or lines represents 4 hours,

[06:40] for example. If we zoom in here with the roller, we can see that in these three lines the price fell, which means that during these 4 hours, 4 hours, and 4 hours the price went down. So we can deduce that during those 12

[06:53] hours the price went down. Following that, we can see that there are several green lines, therefore we deduce that the price went up. If we click here on one hour, for example, we can see that the chart changes completely, and now each

[07:06] of those candles represents one hour of time. But let's go back to 4 hours to be where we were before. Further down we have the volume, that is, how much money, not going to look at that now. Let's double-click here and bring it up. Further

[07:21] to the right we have the order book. Here we can see all the orders that other investors are placing in the market. The ones in red are sell orders, that is, investors who want to sell at those

[07:34] prices, and in green are buy orders, investors who want to buy at those prices. For example, here we have 6,000 dollars that want to buy Bitcoin at 98400. Remember that... It's about buying because we don't have the cryptocurrency itself, but we

[07:47] want to open an order for the price to rise. On the right, we have the place our orders in the market to start trading and making money. Pay close attention here before we do

[08:01] anything. We're going to set this up correctly. First and foremost, where it says "isolated," you probably have it set to " crossed." So, what we're going to do is change it to "isolated." Why? Well, " crossed" will take all the money we

[08:13] have in the futures account as margin, like insurance for the trades we open. In that sense, if we open a trade incorrectly or one that goes very badly, it will take the entire balance we

[08:25] have in the futures account as backing for that bad position. What we do n't want is for the maximum loss when we open a position to be the amount in that position, and that's it. We do n't want to worry about two

[08:38] positions sharing the same money or anything like that. If we bet $1 that the price of Bitcoin will rise, we simply want that to happen. So, we and click... Where it says confirm,

[08:50] remember that. Then on the right, here we see it says 100x. Surely in standard mode it will show 20x, so we click there and what we're going to do is we click there and what we're going to do is lower it all to x and click

[09:02] confirm. That's the leverage. Now I'm going to explain in more detail we have this 's' that says single asset mode or multi-asset mode. I would tell you to use single asset mode, which is much simpler.

[09:16] Click there and close. And in this video, I'm going to show you a small strategy that some traders and investors use to know when to open and when to close trades. But first, let's see how to open and close

[09:28] trades. Okay, look here, here it says open and here it says close. Obviously, we're going n't have anything in the market yet, we're going to click where it says open, obviously, and then we're going to select what would be the

[09:41] Market order. Market orders put us in the market instantly without having to wait for a target price. So it's the instantly. We select one. Market order: Here we see that

[09:54] I have $2,000 available to trade futures. If it shows zero for us, these arrows here and move the money we have in Fiat and spot to the futures contracts wallet. Here we see that I have 93 to send. I

[10:10] can add another 300 and click confirm to send it. It's that easy. The money will appear have to do is press this arrow and send it from contracts to spot, which is our normal wallet. We add everything, click

[10:24] confirm, and that's how we withdraw it. It's that simple. We don't need a lot of money to trade. You can start practicing with very little money. Just keep one thing in mind: when we start, we'll probably lose money. The

[10:36] lose helps us learn, and we don't just lose it and not even know what happened. So, look here, I have $2,000, but I'm not going to use anywhere near that amount of money because I'm not interested in losing that money or anything like that.

[10:50] So here Where it says " amount," what I'm going to do is put the amount of money I want to invest in the market, for example, $100. If I put $100, we see that it tells us the minimum amount is 197 USDT.

[11:04] Why? Well, because now the minimum amount to trade is 0.002 BTC, and as we see, the price of Bitcoin is at 8,000, so that 's 197. So, wasn't it that you needed little money to be able to trade?

[11:19] If here it's asking me for almost $200. Well, let's suppose I have $100. If I don't have those $200 to trade, what I can do is increase the leverage. Let's go up here. Let's put 2x, for example, and let's click where it says "confirm."

[11:32] Now it will let us. See, if I put $100 here, if we go down here, put $100 here, if we go down here, we see that it says "cost 49.31" or "49.21," a short position. Why does it tell us this? Well, notice one thing: if I was previously at

[11:45] x, the cost... It went up to $100 because to open a position of $100 divided by 1 is $100, therefore the cost was $100. If I increase the leverage to 2x and confirm, we see that the cost is $50.

[11:59] Now why? Because, well, 100 divided by 2 is $ 50. So now I need $50. If I increase the leverage to 5x, let's put 5x, we see that now the cost is $20. put 5x, we see that now the cost is $20. 100 divided by 5, we need $20. Remember, we

[12:14] only asking for $20. What does this allow us to do? Well, look, if I have $100, I can put $200 here and I will be able to open the position that was asked for before, but they will only take $40 of my $100. So the maximum I can lose is

[12:29] $40, but I will be opening a position of $200, which means that if Bitcoin goes up 10%, I will be earning $20 because 10% of $200 is $20, and having only invested $40, meaning I invest $40 and if Bitcoin rises 10%, I get $20, or

[12:47] 50% of everything I invested. Yes, this amplifies our profits by putting in less capital. Now, be very careful with this because it carries a careful with this because it carries a higher risk since we're at 5x leverage. I don't

[12:59] need Bitcoin to fall from 998,000 to zero to lose those $0 because we're leveraged at five. So, how much does it need to fall? Very easy: we take normally have to fall if we didn't have leverage, and divide it by 5. 100 divided by

[13:17] 5 is 20. If Bitcoin falls 20% of its price, I'll be losing my $ 40. That's a lot of the price it has to fall, and it's quite a lot. But it can we want. So, what we're going to do is lower the leverage to 2x

[13:33] to do is lower the leverage to 2x to learn. We're going to use 1x, 2x, 3x, and a maximum of 5x until we know how to use futures properly. Remember that. In this case, we'll need the $100 we had to open the

[13:48] minimum $200 trade for the Bitcoin pair. Other pairs will require much less money, so don't worry about that. For me to lose those $100, Bitcoin would have to drop by 50%. So, if it 's currently at 98,000, I need

[14:02] Bitcoin to fall to around $9,000, which is quite unlikely to happen suddenly. Now, once we've done that, we'll decide whether to open a long or short position. Remember, short is for profiting when the price of

[14:16] Bitcoin falls, and long is for profiting when the price of Bitcoin rises. From the moment we open it, if I select long, this position will open instantly. And if we scroll down, we can see our position here in the "

[14:29] Positions" section. We see it says Bitcoin USDT in Perpetual 2x, with a size of $200, as we saw before, or 0.002 Bitcoin more specifically, at an entry price of

[14:43] where we'll lose all our money, which as I said before would be at $9,000. Then on the right is the margin, that is, our capital, what we could liquidation price, or simply the money we invested. And on the

[14:58] right are the unrealized gains and losses. There we see that we're losing about 3 cents, but this will change as the price of at 4 cents now, and it will keep moving further to the right. We have other

[15:11] options, such as adding a Take Profit and a Stop Loss, which is a profit-taking and a loss-cutting order. If we click there, this screen will open where we can set it in several ways. For example, if

[15:23] we put a Take Profit here, it's a profit-taking order; we can set it so that we want the trade to close when Bitcoin reaches 105,000, and in that case, we'll be earning 13.64 with our 100. And a Stop Loss,

[15:37] which is a loss-cutting order, let's suppose we want to stop losing if Bitcoin reaches... $5,000. In that case, we would be losing 6.35 USDT. If we click where it says " confirm," those

[15:50] specifications will be displayed there, and if we want, we can display them on the screen. It's very simple: when the price goes up, profits are taken, and when it goes down, losses are taken because we are in a long position. If we

[16:03] or if we simply have enough profit, we have to go down here and select this option that says " Market." Or, if not, "Close all all our open positions will be closed. And if we want to close only this one, we click

[16:18] here where it says "Market," and it will be closed, and we're no longer here. Done. It's that simple. It's very easy to do. If we now change our down, what we can do is put 200 here and open a short position. In

[16:31] start making money. If the price goes down, it's the same, but with menu 2 because it's reversed, but it's practically the same, and now we see that we were making 7 cents. If I change my mind for any reason, we click where it says "market" and it will

[16:45] close. It's that simple. We open and close market orders in Binance futures contracts. All these trades we open and close pay very small commissions, very, very small. There's no need to worry about that,

[16:57] not at first. Maybe later, when we're more experienced traders, we can pay more attention to that point, but at the beginning, don't worry. Look, I opened and closed with 200 and I still have basically the same amount as

[17:10] learn about limit orders, which are these here on the left. Yes, as we've already seen, market orders allow us to enter and exit the market quickly; we don't want to wait at all. Now, what are

[17:25] limit orders for? Well, limit orders are fantastic if we're not in front of the computer or mobile device to trade the markets. They allow us to enter at a specific price that we're

[17:37] waiting for, and the order will be executed automatically when that price is reached. We select the limit order and enter a price up here. This is the price at which... We want to go into a

[17:49] very important detail: if we're going to enter a long position, the limit price has to be below the current price. For example, if we're currently at 9826, the limit price would have to be 998,000. It can't be

[18:02] above that; it can't be 98300 because it would open automatically. Why does this happen? Well, Binance interprets that if you want to make money when the price goes up, why would you wait for it to be higher if you could already be making

[18:15] money right now? So it opens it automatically. The same thing happens in open a short position, meaning we want to make money when the price goes down, the limit price we set here has to be... The order must be above the

[18:29] below, it will open instantly at the current price. So it has to be above. If we wanted it not to open, we would orders, which I can explain in another video. They're a bit more complex,

[18:42] open a long limit order. think the price will start to rise once Bitcoin reaches 98,000. So up here in the price field, we put 98,000, and down here we'll put the amount,

[18:56] 200 USD, so that the minimum amount opens. We're at 2x, and we have $100. Let's click here where it says "Open Long," and we see that an order starts to be placed in the market that hasn't opened yet. Let's go further down and

[19:12] That's because we have it here in open orders. Notice that here there's one that says "Bitcoin US Limit," yes, open long at 98,000 for an amount Of the 200, which is actually 100, the 200 is the position size, but remember that our

[19:28] margin is 100, and we see that it wasn't filled, zero. We simply click the trash can icon here, and it will be canceled. Rest assured that if the order never became a position, we won't be

[19:42] charged any commissions. And if we cancel it here, look, we canceled it. The limit buy order was canceled; it does n't charge us any commission. You can always have the same amount of money. There's no problem with that. Now, let's

[19:55] do it more precisely so that it happens. Look, let's put 98, 100 here. We'll put the 200 and click " Open Long." Now we'll wait here until that price is reached to see how it automatically enters the market. If

[20:09] right, we can see a small yellow dot next to the order book that says 98, 100. The little yellow dot means our pending order is waiting for this price range to be reached so it can be opened. It's

[20:23] we're positioned. Okay, here we are at around 98100, and it just hit. We see that the position was opened, removed from open orders, and placed in positions. Now we're positioned here, and we see that

[20:37] if Bitcoin goes up to, for example, $0 or nothing, we'll start making money. It's that simple. We open a limit order, long and short. It's exactly the same. We'll close this one and put " market" here. We earn 18 cents. Notice

[20:51] if we want to open a short position but don't adjust the price. Remember, I always told you that if we're going to open a short position, the price has to be above the current price. And in this case, it isn't. Notice that I put 98100,

[21:03] and we're at 9818. If we open a short position, it won't go to open orders; it will go to an automatic position. So that's not what we want to achieve. We close it and put... 98300, we put 200 here, for example.

[21:16] We open the short position and see that it went to open orders and is waiting to reach that price. We see it here before it opens. If we want to cancel it, remember the trash can icon here; you throw it away and it's canceled. And that doesn't pay

[21:30] commissions. You can make mistakes as many times as you want with that. After all, you won't pay commissions. And that's how we open and close orders, both market and limit, in long and short positions—that is, to profit when the price goes up and profit

[21:42] when the price goes down. And now, if you've made it this far, I congratulate you because you're paying close attention and because you're committed to learning this wonderful tool, which, when used correctly, will solve a lot of

[21:54] use it for protection strategies. Futures can be used to protect our other investments. So, I'm going to some traders use to know when to open and when to close trades

[22:09] very low timeframes. For example, what we 're seeing here is a bullish continuation. How is a bullish continuation formed? Well, look, h and H mean highs. Higher highs and HL means lower highs. Why do we talk about a

[22:25] bullish continuation? Well, because this would be the price. So we're seeing that it's going up. How do we know it's going up? Well, because it's made up of higher highs and lower lows.

[22:38] In this way, we see that the chart is going up. Conversely, if we want to trade downwards, the highs would have to get lower and the lows would have to get

[22:51] lower than the previous ones. In this way, we see that the price is falling. Now, when do these types of traders operate? When there's a break of these patterns, that is, when the highs stop being higher than the previous ones, and when the lows

[23:04] also stop being higher than the previous ones. In a bullish continuation, up; we had higher and higher highs and higher and higher lows, but at a certain point, this low stopped being

[23:17] higher than the previous one. Notice that this point, this price here, reached what would be the previous low. So what happens? Well, at this point here... What they often believe, for example, is that the upward trend has ended,

[23:30] so they're going to open a short order, a downward order, to profit when the price falls. What they do is open a short position here and set the stop loss, the cut-off point, at the last highest high. That way, they

[23:44] protect themselves if they're wrong and simply have a limited loss. But if they're right and that upward trend has ended, they start making money when the price falls. The same happens in reverse: if the price is falling

[23:57] downward trend has ended, what they do is open a long position here, a buy position, and place the stop loss, or cut-off point, right below the you to learn to recognize these charts on the screen. For

[24:13] example, in the part here that happened recently, notice that we had lower lows and also higher highs than before. Notice how this part here was higher than the last low, and this

[24:27] high part here was higher than this other high here. The same thing happened with the next one. This was higher than the previous ones. This one here was higher than the previous ones. And these here were

[24:40] higher than the previous ones. If we draw two lines, both the top and the bottom, we can see it very clearly. But at a certain point, the lowest low stopped being higher than the previous ones.

[24:53] Here there was a pattern break, which is generally confirmed strongly, that is, when the candle moves very sharply, which is what happened. And in this case, what we can do is open a short position.

[25:06] Since that upward trend has ended, we believe the price will fall. So what we're going to do here, for example, is open a short position, and we would place the stop loss right at the level of the last high, where we would

[25:18] lose 4.72. And we're going to take the profit at a 2:1 ratio. That is, if the loss is at 4.72, we're going to place it at 9.5. So we would take the take profit to 9.5, which would be more or less around

[25:33] this part of... Here we see that in this case, it would have closed with profits down there, on those lines, on those candles that reached that point. In that case, we would have earned 9.72. But if we had had

[25:45] leverage, for example, 2x, we would have closed with a 20% profit. This is a bit more complex, and learning to see these things on the more study. If you'd like, we

[25:57] can bring it to the channel in a special playlist for you, but for that, you have to support me by liking the video and asking for Elo in the comments. Also, any questions you may have can be left

[26:09] below in the comments section, and I will gladly try to answer them, or those of anyone else in the community. At the same Telegram channel where we talk about cryptocurrencies all the time, and where I

[26:23] share ways you can earn money very, very simply. Or maybe it's not much, but with very little effort. I also share content on my personal Instagram, which you can find in the

[26:36] description. Pinned comment or right on screen, and I constantly update it with news information. I upload reels to my stories quite often, and at the same time, I sometimes share campaigns like trades I'm

[26:48] running. Well, that's all. I hope you found all the find them below, and if you liked the video, don't forget to subscribe to the channel and notify you whenever I upload new content. See you in the

[27:02] next video. Until next time, Crypto Trader