Highlights ①. Gate Intermediate Futures Courses are designed to elevate traders to professional status by developing a robust futures trading system. These courses focus on enhancing traders' skills across the board, including trade skills, capital management, and psychological resilience, all while adhering to the principle of being 'easy to learn, practical to implement, and effective in boosting profitability. ②. This section will introduce the advantages of engaging in contract trading, point out frequent misunderstandings and errors that traders make in contract trading, and provide guidance aimed at helping traders make more informed decisions, thereby increasing their chances of achieving consistent and stable profits.
1. Advantages of Crypto Asset futures Trading With the advancement of digitalization and globalization, the crypto asset market, led by BTC and ETH, has experienced exponential growth. The crypto futures market, in particular, plays a crucial role, with the total market size surpassing one trillion US dollars. Crypto futures are highly favored by many users due to their key characteristics, which include:
①. Small Investment for Big Returns With margin deposits, futures trading allows traders to leverage their principal investment by several or even dozens of times. This leverage enables traders to control larger positions with a smaller amount of capital, offering the unique advantage of "using a small investment to win big." As a result, traders can conduct large-scale trading with minimal funds, maximizing the efficiency and potential returns of their capital.
②. Bidirectional Trading Unlike the stock market, where traders typically profit only from rising prices, futures trading allows traders to open positions in both directions. This means they can profit from both rising and falling markets. Because of this bidirectional nature, futures trading does not suffer from the limitations of a bear market. Even if the stock market is in a downturn, the futures trading market can remain active and full of opportunities for profit.
③. Convenient Trading In futures trading, what is bought and sold are standardized contracts, with the price being the only variable. These contracts represent the underlying physical commodities but do not involve the actual transfer of the commodities themselves. Because the contracts are standardized, they are highly interchangeable and liquid. This means they can be easily bought and sold on the market. The high liquidity and standardization enable traders to execute trades frequently, thereby creating numerous opportunities for profit.
④. High Efficiency Futures trading follows fixed procedures and rules, ensuring a uniform and predictable trading experience. Due to the standardized process, trades can be completed within seconds, enhancing the speed of transactions.As the encrypted futures market grows, the technology supporting trading platforms has also advanced significantly. With these technological improvements, trading platforms can match millions of orders per second, resulting in faster responses and less downtime.These advancements provide traders with a smoother and more efficient trading experience.
Futures trading offers the potential for high returns, but these high returns also come with significant risks. Traders need to carefully decide whether to go long (buy) or short (sell) based on their market predictions, and exercise effective position management, helping to mitigate potential losses.
2. Advantages of Gate Futures ①. Dual-price Mechanism & Up To 100 x Leverage Gate Futures supports leverage of up to 100 times. It uses a dual-price mechanism to prevent liquidations caused by market manipulation. Additionally, it adopts a tiered margin structure and maintains a dynamic insurance fund of up to $50 million to safeguard traders' investments.
②. The Largest Trading Pairs Pool Gate Futures boasts the largest pool of contract trading pairs, offering 300 options for users to choose from. This extensive selection provides traders with more choices and greater opportunities for profit.
③. Advanced Coin Listings & Early Access to Valuable Projects The platform features an efficient and flexible currency listing mechanism, giving us an edge over peers in discovering hot spots and high-quality projects, and quickly launching contracts. We serve as the exclusive issuer for many high-profile projects like ORDI, helping our users gain early access to valuable opportunities.
④. Proven System Stability After 10 years of stable operation, we have accumulated industry-leading technologies. Our first-class, efficient matching engine ensures a seamless trading experience, even under extreme market conditions.
⑤. Industry-leading Contract Quantitative Strategy We maintain a one-stop strategy futures quantitative robots pool, offering a diverse selection of trading bots for traders, including futures grids, futures CTA strategies, and custom strategies. Notably, our copy trading feature allows traders to easily profit by mimicking the trades of experienced traders.
⑥. Integrate Web3 Contracts
Without needing to register or connect a wallet, you can directly trade futures on our Web3 Futures platform. This decentralized futures platform, built on zero-knowledge proof technology, is now officially available on our main site.
3. Common misunderstandings about futures trading ①. Overinvestment One common mistake for futures traders is overinvestment, meaning investing all their funds in a single trade without employing proper fund or position management strategies. This can create a significant psychological burden when holding positions. Even minor market fluctuations can lead to substantial floating losses, making it difficult to respond to changes in a rational and composed manner.
②. Blind Use of High Leverage Leverage is a double-edged sword. When used properly, can potentially maximize gains quickly and help accumulate wealth. In futures trading, many traders tend to use extremely high leverage (like 100x) to try to achieve high returns. However, this strategy often backfires, leading to significant losses and potentially reducing their initial investment to zero. A more prudent strategy is to use leverage modestly and to trade in alignment with market trends. After all, using lower leverage is more likely to result in stable and consistent returns over time in futures trading.
③. Opening Positions Against the Trend and Increasing Positions at a Loss Losses typically occur when traders lack sufficient understanding of the futures market and act blindly against the prevailing trend. Without conducting technical analysis, they make investment decisions based solely on instinct or market news. When a position starts to show a loss, instead of decisively executing a stop-loss, they add to their positions in an attempt to average down the price. This often results in liquidation due to insufficient margin.
④. Frequent Transactions Novice traders often get influenced by the fear of missing out (FOMO) and market sentiment, leading them to make trades based on minor market fluctuations. Engaging in frequent trades due to these small fluctuations results in high transaction costs and handling fees, reducing overall profitability. Traders who focus on short-term market movements (short swing traders) may miss out on significant long-term profit opportunities
Summary
Crypto futures are a mainstream product in today's market, favored by many traders for their profitability in both bear and bull markets, their bidirectional trading capability, and their potential for rapid wealth building. This article explores the advantages of crypto futures and the unique benefits of Gate Futures. It also identifies common mistakes in futures trading, aiming to help traders avoid errors and misunderstandings to achieve stable profits.
Disclaimer This article is for informational purposes only and does not constitute investment advice. Gate is not responsible for any investment decisions you make. Content related to technical analysis, market assessments, trading skills, and traders' insights should not be considered a basis for investment. Investing carries potential risks and uncertainties. This article offers no guarantees or assurances of returns on any type of investment.
