How crypto future trading works?
How crypto future trading works?
If I put huge amount like 10k$ on top 3-7 crypto with 5x leverage. In a stable market , it moves in opposite direction of what I chose, atleast for few hours.
I want to learn, what goes on behind the scenes, how is the upward movement and downward movement caused in case of futures.
When whales open 10M$ long it goes above.(if so he can mint money on anything)(for a long as such to work I think their must be some short to be drained).
When retail investor’s opens some position with margin like 10k$ it goes opposite.
Most extreme life-changing money were made in futures, not spot holdings of shitty memecoins. The best traders on FTX leaderboards were all futures traders on leverage, I still remember some of the guys who made 3-5x more than the equivalent spot holdings back in the day. SOL went 50x and some of the traders in top 30 went straight into top 10.
The same principle applies, buy low and sell high, and that principle is even more important with leverage. Whales lose all the time, a move induced by 10M isn’t gonna last more than 24 hours.