Time is the enemy of margin traders

[CryptoTroubleshooter]

Friends, I'd love to hear your thoughts on a line I wrote:

Time is the enemy of margin traders

Trading on margin incurs interest so the longer the trade, the more interest you pay.

And yes, you can profit instead of bleeding from perp funding when you buck the trend.

Agree or disagree?

[Oshosondy]

On Bybit and OKX, you can open bitcoin future (not perpetual) up to 1 year contract. You can open up to 6 months of it on Binance. Is that not better than margin trading?

On Bybit and OKX, you can used your coin that are not stable coins to open the future position.

You can use bitcoin to open it on Binance also, but no support for most altcoins, unlike on Bybit and OKX.

[sergiorus]

On Bybit and OKX, you can open bitcoin future (not perpetual) up to 1 year contract. You can open up to 6 months of it on Binance. Is that not better than margin trading?

Expiring futures often have suboptimal liquidity, sometimes liquidity can get really dry and some nasty wicks may occur and trigger your stop loss or liquidate you.

For long term leveraged positions it's better to use borrowed funds on spot markets.

[MusaMohamed]

Friends, I'd love to hear your thoughts on a line I wrote:

Time is the enemy of margin traders

Trading on margin incurs interest so the longer the trade, the more interest you pay.

And yes, you can profit instead of bleeding from perp funding when you buck the trend.

Agree or disagree?

I agree because traders are different than investors, they must be active with their money, trading capital, and trading positions. If traders do rightly, they must know how long they should let their trading positions open, even with spot but surely with margin, time is more limited. Firstly it's because with margin, time flies mean more margin fees, but there is bigger risk: liquidation. If traders use a short time frame candle for finding entry, it's unsafe to let that position opens too long time because the market trend (with that short term time frame) can change quickly later.

Generally, it's right to say time is the enemy of incapable traders including margin and futures traders.

[Oshosondy]

Expiring futures often have suboptimal liquidity, sometimes liquidity can get really dry and some nasty wicks may occur and trigger your stop loss or liquidate you.

For long term leveraged positions it's better to use borrowed funds on spot markets.

I disagree with this, but I know the price is different from perpetual price. If you know what you are doing and also trading the right coin, you will not get liquidated. I have opened bitcoin future position before and leave it for days until I later close it myself before it expires. Just use low leverage and you are good.

[Myleschetty]

Agree or disagree?

I'm not sure. Since waiting for the ideal setup or the market to arrive at your POI is the main obstacle in trading, time is not really the enemy. I believe it's the impatience with trading confirmation prior to entry is the biggest enemy of any trader, regardless of their area they choose to trade.
If you use an honest platform with advantageous rules and regulations, both margin and perp funding are good.

On Bybit and OKX, you can open bitcoin future (not perpetual) up to 1 year contract. You can open up to 6 months of it on Binance. Is that not better than margin trading?

Will they provide the trader the funding througout the duration of the contract?