How tough is futures in comparison to spot trading

[BlackBoss_]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

To understand risk of Futures trading or Leverage trading, you simply need to read exchange's guide and their formula on liquidation. After reading their collateral and liquidation formulas, you will know more about risk, not only in words but in math.

Understand formulas and risk will help you to be less greedy with leverage, futures and become more careful with your capital so that you will less likely use leverage or futures for your trading.

Forced selling (or forced liquidation): Definition and examples

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

I don't trade Leverage and Futures.

[Yaunfitda]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

As others have said, it's riskier, why not go and try spot trading first? I mean you are doing demo and obviously it's a different feel you are playing with your real money. But it's really up to you, if you believed that you can make that big jump in future trading then do it. But as what others have been saying, it's going to be very difficult in the beginning and obviously you are going to lose that money in order to gain that experience. If you are willing to suffer and do that and then think about the future that you might gain because of those failed experiences then sure you go future trading by all means.

[LogitechMouse]

~
But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Futures trading isn't as hard as spot trading.
The only difference is the amount of profits and losses that you can get when trading to both of them.

I've tried both already when I wanted to learn trading, and I would say that trading in futures isn't as hard as trading in spot, but the amount of money that you can potentially lose in futures is way higher and that's what makes it hard. The thing about futures is that many newbie traders are getting attracted to the amount of profit that they can get compared to amount of profit that they can get in spot trading. They aren't thinking about the potential losses that they can get on it.

Right now, I already stopped trading because it wasn't for me (and I already accepted it). I would not say that futures trading is harder than spot, but it's way riskier.

[fullhdpixel]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

All I can say about futures trading is that futures trading is just like gambling where if your guesses are wrong, you have nothing to recover, and you will lose all your money. Even after setting a stop loss, you lose a lot of money. And if you are saying that I have seen trading on demo and I am doing it right then believe me trading on demo looks very easy and you are doing all the trades very well, but when we have invested our real money it's just the opposite, there are very few chances of us winning, and just like how we get rich quickly on the demo, it doesn't happen at all in reality.

When we do support trading, we have an expectation that if the market goes down, our money is at a loss, but with the hope that the market will go up and our money goes in profit, we wait but in futures, it's different. I am not saying that people don't do futures trading they do futures trading, with very expert people who know almost everything about the market and all their signals are right.

[shinratensei_]

the difficulties lies with the risk accompanied, your capital acts essentially as a buffer if you use leveraged trading in future for the margin if your trade is losing, which means at some point you gonna get liquidated if the current market price falls below the entry price (if you long for example) and your capital can't pay for the unrealized PnL anymore, quite different with spot where you can just decide not to sell.

on the other hand, if you get profit, the profit usually will be more mesmerizing than compared to spot, futures also usually fast paced than spot trading in my opinion with the leveraging feature.

Most of people usually don't recommend future, if it's your first time doing future trading, it's better to get the gist of it using smaller capital don't just use big capital for it, also know that 90% of daily trader don't make profit and i'm pretty sure future trade make up big chunk of that.
there are also many stories where people lost millions due to over leveraging, there's a thing called short and long squeeze that you need to know about beforehand and it might help moving on forward.

[Out of mind]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Futures trading is not difficult than spot trading, but futures trading is much riskier than spot trading. For example, currently I am trading with spot trading, I have lost a lot of money because the market has gone down a lot, but if I was doing futures trading, maybe I would have liquidated if I had taken a long trade at this moment. So here I mean futures trading is much more risky if you lose here money may be lost forever but in spot trading if you lose there is a possibility of recovery. If you are thinking of diving into futures trading, then I would say don't dive into futures trading without gaining a lot of experience.  Future trading is very risky here you are guaranteed to lose money you earn less than trading in spot trading.

[retreat]

Even when you have good performance on a demo account, it cannot guarantee you that you can have good performance in futures trading. The reason is because you trade real money on a futures account, which is different from a demo account where you trade not real money, so whether it is lost or whatever you don't really worry about it, but in futures trading you trade your own money and even a wrong entry can result in margins call.
Not to mention that when you choose a small time frame and high leverage it will make trading more aggressive, and this can affect your psychology and make you make the wrong decision. So consider these things when you want to get into futures trading because it is much more riskier compared to spot trading.

[Oshosondy]

When it comes to spot trading, it’s easier to trade on a short term and all your analysis are always based on what is happening at the moment in the market, your use of time frame often speculated closely to what could be the case and doesn’t give toom for much surprises. When it comes to future trading, your in for a lot of surprises as, your analysis spans through longer time frame which, gives room for constraints not fully considered to affect the market and you could be affected more than your prepared for if you ain’t watching.

I do not know what you are getting wrong. Probably you may know what you are talking about but mistakenly put spot where future supposed to be. Spot trading is better for long term than future or any other type of derivative trading. Especially if you want to go long and using 1x, why not just buy the coin instead in the spot market. Funding rate are most of the time positive and that means long position traders have more chance to pay the funfing fee to the short position traders than short position traders to pay the fee to long position traders.

[Lakai01]

[...]
Not to mention that when you choose a small time frame and high leverage it will make trading more aggressive, and this can affect your psychology and make you make the wrong decision. So consider these things when you want to get into futures trading because it is much more riskier compared to spot trading.

I think your first paragraph is obvious and clear to anyone who has ever traded.
But you are absolutely right about the second paragraph. The psychology is completely different when you "play" with a trading account in demo mode than when you trade for real, and this should not be underestimated, as it is much easier to get carried away with short-circuit actions (ending trades early, etc.).

[Pandu Geddon]

Even when you have good performance on a demo account, it cannot guarantee you that you can have good performance in futures trading. The reason is because you trade real money on a futures account, which is different from a demo account where you trade not real money, so whether it is lost or whatever you don't really worry about it, but in futures trading you trade your own money and even a wrong entry can result in margins call.
Not to mention that when you choose a small time frame and high leverage it will make trading more aggressive, and this can affect your psychology and make you make the wrong decision. So consider these things when you want to get into futures trading because it is much more riskier compared to spot trading.

the only difference is the pressure that traders will get.  and that makes traders' minds unable to really focus and beginners tend to panic and worry easily.  It is highly recommended that novice traders use a demo account.  It actually helps, it just depends on whether we can prepare ourselves for real trading or not.  if you are not ready, then practice with a demo account.  Nothing is wrong.  they trade with money, there is something at stake.  Therefore, don't try when you are not really ready to lose.

[Peanutswar]

In spot trading you dont need to get bothered with the market price because you are not liquidating your whole asset, instead your investment will just ride a percentage also you don't need to get watch every day the market price all you need is to buy in the low point or dump and wait for your desired profit, in futures you are keep watching the market so you can make a position in every pump and dump so the volatility is your profit but not all the time volatility is your friend sometimes unexpected movement reason why traders liquidated. Reason why always follow the indicators and signals to prevent this kind of mistakes.

[gunhell16]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Just like what some say in the section that you made the topic of, the risk level is actually higher in futures. Your futures fund can be dissolved quickly. Because the accuracy of your understanding of trading here in the crypto space is at least 75% when you do a technical analysis,.

Because if you bother to do that at least every day, you will end up depending on luck to get profit from trading, and that is not the true mindset of a trader, and it also turns out that you are not a trader but instead you are a gambler, that you are treating trading as a gamble or casino is also in your view, something that for me is wrong.

[GreatArkansas]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

To understand risk of Futures trading or Leverage trading, you simply need to read exchange's guide and their formula on liquidation. After reading their collateral and liquidation formulas, you will know more about risk, not only in words but in math.

Understand formulas and risk will help you to be less greedy with leverage, futures and become more careful with your capital so that you will less likely use leverage or futures for your trading.

Forced selling (or forced liquidation): Definition and examples

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

I don't trade Leverage and Futures.

This is what I really see that is the difference between the two: Risk.

So for OP, OP just needs to be more careful when trading the futures market. Your strategy will also change here like the risk management - risk reward ratio, since the risk is higher, reward is also higher so for sure you will be more looking closely in your entries, stop losses and target price.

[R1dwanRz]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Lol, I wonder if you were referring to the event by Bitget, where they're having rewards as Rolex, Airpods and even a Tesla cybertruck, since you have to trade futures for it?

Anyways, I tried futures, Imo, it all comes to having checked the news, giving the time on it, cos you hope that your price target hits and you get excited as you get gains. But it also comes with a cost, like it's risky. i am sure some forum members here, trade futures really well.

If you want to gain something, you also have to give losses in order to succeed. That's the game plan. It's not a piece of cake.

[Gaza13]

Future trading is actually risky but when you knows it very well it became simple what you need is to have enough funds, although trading requires having enough fund to enable to cover up your trading for period this is would depend on your Lot size. Spot trading is one of the simplest and easiest trading which I think before you could be able to succeed in any of the trading you must know all the fundamentals.

Yes, to know this job well, of course, in this case they must have sacrificed quite a lot of money and time during the process to become better than before. Indeed, in trading you have to prepare as much money as you can afford to spend. Even though you know it well in terms of knowledge, there are still many people who lose their funds. If you experience a lot of failures in the short term, you should choose another method such as (spot) which is much safer than the short term.

[Bournesparks]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

First off I'll suggest you work on your risk management then take the bold step to do live trading.. I wish you luck. Btw what exchange is that and what's the event about. You can share more details or probably a link to it..

Great advise here mate. I started with risk management though..it's a painful but slow process and it works wonders long term. Did a quick search about top futures trading event & this popped out. Might be the one OP is referring to..Trading event

[milewilda]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

To understand risk of Futures trading or Leverage trading, you simply need to read exchange's guide and their formula on liquidation. After reading their collateral and liquidation formulas, you will know more about risk, not only in words but in math.

Understand formulas and risk will help you to be less greedy with leverage, futures and become more careful with your capital so that you will less likely use leverage or futures for your trading.

Forced selling (or forced liquidation): Definition and examples

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

I don't trade Leverage and Futures.

This is what I really see that is the difference between the two: Risk.

So for OP, OP just needs to be more careful when trading the futures market. Your strategy will also change here like the risk management - risk reward ratio, since the risk is higher, reward is also higher so for sure you will be more looking closely in your entries, stop losses and target price.

Majority of noobs would really be looking that futures is something more interesting and something more rewarding on which its true but on the moment that they arent that wary about the risks that they are taking
and then they had bust out all of their capital just because of too much leverage and didnt expect of it then for sure it would really be leaving out that kind of regret that he/she wont really be able to forget.
Most people wouldnt really be believing others words about risk involved not until that they would really be able to experience for themselves about the thing that everyone is saying or into those people who do have
that actual experience on it. Futures is really that indeed that interesting but in speaking about risks management then it would really be jus that depending on a certain trader.

For me 10x would really be enough ang going beyond with those numbers is something that i cant be able to handle. One minimal opposite movement could really be that making that huge
impact into your capital and this is something that i dont really like.

[Franctoshi]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Futures trading isn't something you would dive into without the proper knowledge or experience,  Demo trading is basically to guide you to gain experience of the things you are going to face in the real market, don't think that your experience with Demo account will be same as live trading account, honestly you are going to see a different ball game in the live market but not too far from what you've experienced with Demo trading,  in the live account Institutional Manipulation is real ,also you will face real time market pressure seeing your trades go on red or loses because definitely it will happen .

When it comes to spot trading your only worry is for your asset to increase in value you literally has little job here to do, just buy sit back and relax while you watch your portfolio until the specific period you want to take profit.

[irhact]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

Don't do it or you'll lose so much that you might go broke in all aspects of your life, future trading is not for newbies. How well have you been trading through spot market, how many years and what is your winning percentage like as if you haven't made it from spot trading, future trading will be hard for you. Don't join due to an advertisement, the exchange are only looking for customers with that as.

Future trading is harder than spot trading, future trading will liquidate you and leave you with nothing in your account. Spot trading leaves you with your tokens that you can hold and if the universal wants you to succeed, the token might get value back when the bull season comes as we're expecting. Spot trading is less risky and that is what everybody is doing.

[BlackBoss_]

This is what I really see that is the difference between the two: Risk.

So for OP, OP just needs to be more careful when trading the futures market. Your strategy will also change here like the risk management - risk reward ratio, since the risk is higher, reward is also higher so for sure you will be more looking closely in your entries, stop losses and target price.

Trading is always risky but risk difference between Spot Trading and Futures/ Leverage Trading is very big.

Chance to get profit with Leverage/ Futures Trading is not big and attractive enough to convince me to use this type of trading. If I trade, I choose Spot Trading, because there is risk existence but it is smaller than Leverage/ Futures Trading and I can control risk better.

With Leverage/ Futures Trading, I might lose big money because of market manipulations, market crash within very short time like 5 minutes, 15 minutes, anytime even when I am sleeping.

For all, use Stop loss and Stop limit orders to minimize risk.
One of the best weapons in trading: Stop loss order
What is a Stop limit order