Futures expiry: Strategies of successful cryptocurrency trading
The world of cryptocurrency trading can be unstable and unpredictable. As cryptocurrency increases, such as Bitcoin, Ethereum and others, the market is becoming more crowded and complex. One of the aspects of this market, which is often overlooked, is the expiration of Futures. In this article, we will examine the importance of the expiry of the Futures in cryptocurrency trading and we will provide strategies for successful traders to move this key element of investment strategy.
What is the expiry of the Futures?
Borning Futures refers to the point where the trade agreement reaches the expiration date. At this point, the basic resource (in this case cryptocurrencies) will no longer be trading on the stock exchange, where it was initially replaced. This may have significant implications for traders, because Futures contracts can provide a lever and potential profits.
Why is the expiration of Futures important in the trading of cryptocurrencies?
The expiry of time -term contracts can provide traders with the opportunity to take advantage of price movements before they are fully implemented. For example, if a salesman bought a cryptocurrency contract of 10,000 units per unit, but the market price drops to 8,500 pieces before expiry, may be able to sell a contract and recover part of the initial investments. And vice versa, if a trader sells a Futures contract with the date of expiry in the future, he may be forced to keep assets by that day, potentially closes profits.
Strategies of successful trade in the expiry of Futures
While expiry trade can be a high -risk strategy, there are several strategies that are successful traders to move this key element of their investment strategy. Here are some key strategies to consider:
- ** item The position well size allows for greater flexibility and reduces the risk in the event of losses. However, this also means that a larger rate of capital is at risk, so you only need to allocate a reasonable part of the general portfolio.
- Risk management : Risk management refers to the process of identifying potential risks associated with important trade and taking steps to alleviate them. This may include security strategies, orders for a degree of alloy or other techniques that help reduce losses.
- Technical analysis
: Technical analysis is a study of movements and price patterns on the market. Analyzing charts and trends, traders can get insight into potential capabilities and risk associated with timely trading.
- Market moods : market moods refer to the overall tone or market attitude towards a specific resource. Traders who are aware of market moods can use it in their favor by deciding on trading.
- Diversification : Diversification is the practice of disseminating investments in various markets and assets. The diversification of the portfolio reduces the exposure to any specific resource or market, which hinders losses.
Popular trade strategies regarding the expiry of Futures contracts
Here are some popular trade strategies that can be used in combination with the expiry of Futures:
- The following trend : The following trends include identification of the direction of the trend and positioning accordingly. This strategy can be used for both long and short transactions.
- Scalping : Scaling consists in taking many small transactions during the day to benefit from small price movements. This strategy requires a high level of market knowledge and quick reaction times.
- Trade based on messages
: Trade based on messages consists in using information events as a trigger for entering or exit from trade. This can be used for both long and short transactions.
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