How tough is futures in comparison to spot trading

[Lanatsa]

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?

Everything is about leverage. If you trade futures with 1x leverage, then it's not different from Spot trading but as you increase your leverage, you increase your chance of high profit and high loss. Everything becomes more tough when you start opening short position besides long positions because in case of short, if price starts increasing, you are going to lose money and if you use leverage, there are sometimes chances that price will hugely pump for a few minutes, that can be enough to liquidate you. It's the same for long position with high leverage, sometimes price significantly falls down for a few minutes and that can liquidate you too. Futures trading can potentially double, triple and offer you far more profits but the risk is going as well. Don't be too confident that you'll manage it. If you want, try it yourself but don't be too confident, it's not as bright as it looks from one look.

On the moment that you would really be considering on taking up some futures trading then you should familiarize yourself or mastering spot trading first so that you could really be able to make out adjustments basing up on the leverage on which you could really be able to handle and not something goes beyond your limitation. Most of the time for someone who do deal up with futures specially to those who are just that new, they are really that making it some sort to be like that gambling on which its never been that recommended, and this is why on the moment that you would be doing up trading then never ever
make yourself having that kind of approach that you would really be acting like a gambler because if you do then you would really be subject to tons of loses.

This is why it would really be better that you should really know on how you would really be that making yourself on how to deal up with things. Dont tend to dive in
with futures if you dont know on what you are doing.

[CageMabok]

As long as you have been practicing and doing very good then it's fine you can jump in. But kindly note that when you trade your own funds it's a different scenario compared to demo so be ready for some dramas when you finally jump in and also note that futures is risky. Don't over leverage for start.

Whatever it is, there are risks and for people who have the intention to practice and the intention to try it, that person will definitely be able to get through the bitter times and find beautiful times. Trading is a job that really requires knowledge and expertise in understanding market conditions and in taking advantage of certain moments related to the market so it is clear that there is no easy way to do it even though there are most people who have been successful with trading now and in the past.

[GbitG]

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?

Hmm, nice idea!
In fact, future trading is much more risky as compared to spot trading. Because of this, most people lose due to their lack of knowledge, that is, most traders do not apply the money management technique. In general, in the money management technique, you have to make a plan under a discipline in the offense of the market and at the same time you have to set a loss limit. So if all these aspects are taken into consideration, the chances of risk can be reduced. 
 
Besides, that high leverage is something in which whatever you do, your loss ratio will be high because, first of all, he can damage you through liquidation by monitoring your exchange points, that is, he liquidates you. The exchange knows the stop loss of all users and they pump or dump the market by doing liquidity swaps, i.e. liquidate the long or short. So if this critical point is in mind then your loss ratio can be reduced in future trading and if you don't know then surely you can lose due to high volatility.

[dansus021]

Im going to give you a simply comparison made by binance and i think this cover a lot about spot and futures



Spot pricing is for immediate delivery, whereas future rates are for delivery at a specified future date.
 Spot trading
Involves buying and selling an asset at the current market price for immediate delivery. Futures trading
Involves agreeing on a price and future delivery date for an asset https://cfifinancial.com/en/blog/the-difference-between-spot-and-futures-trading-explained-simply

[irhact]

For a person getting into a volatile market such as the cryptocurrency market, they need to have a lot of knowledge about the market before they start trading, and when we talk about futures trading, it's risky even for experienced traders, so if you are not experienced and also have no knowledge, you don't stand a chance.

I'm always afraid of future trading as I have read about how deadly it can be and I have seen stories that has alot of big numbers in losses. When I lose $100 I can't help but feel bad for losing but when I see the losses in future, I can't see myself losing that amount and be calm about it. Some traders don't take their risk management seriously as how can someone be losing over 6 figures and still being trading more without taking a break from trading for some days. Future trading is 10 times tougher than spot trading and no newbie should be trading future market. If you have experience from trading other products you can't use that same experience here as the market here is different from other market therefore a newbie shouldn't be trading future unless you want to lose. Future trading should be for those that have alot of money and have strong minds to risk losing.

[kawetsriyanto]

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.

Even we know it well, we can deny the fact that future trading is riskier. Even you have been successful in spot trading, there is no guarantee to succeed in spot trading. IMHO, future trading isn't recommended for newbie traders and  average traders, it is only for experienced traders or professional traders. In future, you must have great analysis both the coins and market conditions. If you have lack of those knowledge, it is just wasting money in future trading. For me, there is no term of simple trading, both future and spot require good skills and broad trading insight. It is not only about fundamentals, we also need to analyze the price charts. And it is a must to have mature mentality as well.

CMIIW

[khiholangkang]

As long as you have been practicing and doing very good then it's fine you can jump in. But kindly note that when you trade your own funds it's a different scenario compared to demo so be ready for some dramas when you finally jump in and also note that futures is risky. Don't over leverage for start.

Whatever it is, there are risks and for people who have the intention to practice and the intention to try it, that person will definitely be able to get through the bitter times and find beautiful times. Trading is a job that really requires knowledge and expertise in understanding market conditions and in taking advantage of certain moments related to the market so it is clear that there is no easy way to do it even though there are most people who have been successful with trading now and in the past.

It is said that only a few people can succeed from trading, because it is very difficult and most people fail because they give up and quit when they pass through the void without profit.
Risk is always there, even if we do nothing is also a risk that we have to get the next time.

Basically trading is the discipline of the rules that are made after understanding how the market is volatile it will give us insight and ways to make a decision in this trading world so that we can learn and learn from profits and losses, nothing is easy in this life if you want to be the best in the field.

[tottong]

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

It is much riskier compared to spot trading and when you want to make a big jump from the previous trade then I am sure you already have an idea.
The risks of futures trading are very large and may require knowledge to carry out and when we are not prepared for the consequences that occur it will cause excessive panic.
But as long as you can make this leap for the better then it's up to you because we know that in any trade we only hope for profit.

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

The level of difficulty may not be much different, but spot trading is much safer than futures trading.
If you use futures trading and use high leverage, it requires analysis of the coins being traded and is not at all easy to do.

[YOSHIE]

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

Whatever trading you do in the crypto market is risky, whether it is Futures or Spot, you must understand both in detail before trading both.

Risks for Futures trading.

Futures traders can lock in the price of the underlying asset. These contracts have expiration dates and set prices that are known upfront. Stock futures have specific expiration dates and are organized by month.

Risks for Spot trading.
The risk will occur when the price of the crypto you buy can drop, for example you buy coins at $50/coin, tomorrow morning you wake up and it has dropped to $30/coin, that's the risk of Spot trading.

Of course both are risky, but Futures trading is riskier than Spot, expiry for Futures trading, spot is not the same, it's just the value when you buy and after you buy, that's all the changes.

[Fivestar4everMVP]

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 very hard when you compare it to trading the spot market, aside the futures market always coming with a very complicated interface, one that is almost impossible for any newbie to understand at a glance, trading futures market is also way more riskier than anyone who has not traded the futures market before can imagine.

But yeah, the reward of trading the futures market is sure very huge when compared to the amount of reward or profit one can make trading in the spot market.
It is of utmost importance that one does not enter into trading the futures market unprepared, you will end up losing all your money, and as a newbie that have practiced trading futures using a demo account, don't make the mistake of being over confident in your self and what you understand so far, when going into trading futures market with real funds, start with the minimum amount, and try to grow that, only increase this amount when you are become more confident in your ability and analysis.

[AYOBA]

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

Those that have lean much about the future trading explain that is has higher risk than every trading, but since you choose to learn about the future trading the only advise I can give you is that if you're leaning about the trading don't forget to learn about the risks that are includes every body with his own decisions, but if I may you instead to be west time in leaning demo trading or future trading how rather go for Bitcoin investment which can.pay more profits in future.
Because you can start Bitcoin investment with any amount of money that he/she can afford to lose, unlike the future trading a person most have enough financial before starting it and at the end day you still end of losing without achieving single profits.

[shinratensei_]

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?

       -   Spot and futures trading have the same risk that will affect our fund if the method we used is not correct in itself. It's just that when it comes to the actual action of the trading activity in the futures trade, it's only slightly higher in terms of risk level compared to the spot.

In the spot, whatever fund you have placed to be traded is the only one that can be lost or reduced from your fund because it is isolated; unlike futures, if you make a mistake in setting up and you put it in the cross margin, your fund will be scrapped. especially your understanding of trading, which is shallow. So intelligence and understanding of trading are needed here.

and don't forget the margin maintenance and the higher fee than making order in spot.
it's overall more complicated scene compared to spot trading but the fact that with future trading we given option to leverage also making the trade faster than spot trading which also equal to faster profit making.
spot is suited for newbie that only knows buy low and sell high, with future trading, it's more suited to veteran that can read technical analysis and pattern.
I'd say before delving further into future trading, be sure to have the capability to read chart pattern and do TA, because your competition, almost all of them can.

[doomloop]

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.

Even we know it well, we can deny the fact that future trading is riskier. Even you have been successful in spot trading, there is no guarantee to succeed in spot trading. IMHO, future trading isn't recommended for newbie traders and  average traders, it is only for experienced traders or professional traders. In future, you must have great analysis both the coins and market conditions. If you have lack of those knowledge, it is just wasting money in future trading. For me, there is no term of simple trading, both future and spot require good skills and broad trading insight. It is not only about fundamentals, we also need to analyze the price charts. And it is a must to have mature mentality as well.

You are right, futures trading is never recommended for newbies because it carries extreme risks and one can lose everything they invest if they don't understand the market very well and do not have enough knowledge about the necessary trading practices such as using leverage, placing stop-loss, closing positions when necessary, etc.

A lot of newbie traders tend to think they can conquer the futures trading market because they know it can generate great profits for them, but they ignore the fact that with great profits come great risks as well, so if they are doing it for profits, they need to be ready to face the risks, and we often see people getting liquidated on social media platforms because they venture into futures trading without ample knowledge and get burned in no time.

[uswa56]

Whatever it is, there are risks and for people who have the intention to practice and the intention to try it, that person will definitely be able to get through the bitter times and find beautiful times. Trading is a job that really requires knowledge and expertise in understanding market conditions and in taking advantage of certain moments related to the market so it is clear that there is no easy way to do it even though there are most people who have been successful with trading now and in the past.

You are right, in whatever we do of course there are risks both in trading and investment that we will face and by continuing to study and practice this of course this will be able to increase the knowledge and experience that we have and this will can make it easier for us to be able to make a profit from every trade we carry out, being able to know the right time to enter the market of course this will give us profits but this will make us have to continue to monitor market conditions so we can get the right moment to trade and make a profit.

[wxa7115]

Whatever it is, there are risks and for people who have the intention to practice and the intention to try it, that person will definitely be able to get through the bitter times and find beautiful times. Trading is a job that really requires knowledge and expertise in understanding market conditions and in taking advantage of certain moments related to the market so it is clear that there is no easy way to do it even though there are most people who have been successful with trading now and in the past.

You are right, in whatever we do of course there are risks both in trading and investment that we will face and by continuing to study and practice this of course this will be able to increase the knowledge and experience that we have and this will can make it easier for us to be able to make a profit from every trade we carry out, being able to know the right time to enter the market of course this will give us profits but this will make us have to continue to monitor market conditions so we can get the right moment to trade and make a profit.

But whether you can tolerate that risk is a completely different matter, futures are incredibly risky because those that engage in it often use leverage, and very often any use of leverage comes accompanied with a massive increase on the risks that you are taking.

So it is not rare at all to see traders going from performing well with spot trading, to go bankrupt just because of the increase on the risk that they decided to take.

[justdimin]

Whatever it is, there are risks and for people who have the intention to practice and the intention to try it, that person will definitely be able to get through the bitter times and find beautiful times. Trading is a job that really requires knowledge and expertise in understanding market conditions and in taking advantage of certain moments related to the market so it is clear that there is no easy way to do it even though there are most people who have been successful with trading now and in the past.

You are right, in whatever we do of course there are risks both in trading and investment that we will face and by continuing to study and practice this of course this will be able to increase the knowledge and experience that we have and this will can make it easier for us to be able to make a profit from every trade we carry out, being able to know the right time to enter the market of course this will give us profits but this will make us have to continue to monitor market conditions so we can get the right moment to trade and make a profit.

I do not think that you need to know it that well, you just have to follow the market, get in when people are hopeless and price is low, and get out when people are hyped and greedy. That is exactly what you do in trading, look at the past two months and you will see a few times that happened, which is why I think it is going to be quite important to consider how that will change some stuff. We need to realize that we are going to end up with some stuff that will get a lot better.

We need to focus on how to get better with time, and while that doesn't mean that we are going to end up with a profit overnight, if you get in at the bottom and get out at the top, that is the entire goal. Now you may think that's obvious, but plenty of people are selling when it is going down as you can see.