How to Profit From Futures Trading

In cryptocurrency Futures trading, investors can Buy Long or Sell Short to gain profit from the market fluctuation.

 

Buy Long

If you expect the market price to rise in the future, you can Buy Long to gain profit.

Take BTCUSDT Linear Contract for example. Assuming the current price is 45,000 USDT and you think the price will continue to rise, you can buy 1 BTC in BTCUSDT Futures market. When the price of BTC rises to 50,000 USDT, you can sell your 1 BTC contract and get a profit of 5,000 USDT.

 

Sell Short

If you expect the market price to fall in the future, you can Sell Short to gain profit.

Take BTCUSDT Linear Contract for example. Assuming the current price is 45,000 USDT and you think the price will continue to fall, you can buy 1 BTC in BTCUSDT Futures market. When the price of BTC drops to 40,000 USDT, you can sell your 1 BTC contract and get a profit of 5,000 USDT.

 

Buy Long/Sell Short Comparison

  Buy Long Sell Short
Your Price Expectation Up Down
Position Amount 1 BTC 1 BTC
Entry Price/Direction 45,000 USDT/Buy 45,000 USDT/Sell
Exit Price/Direction 50,000 USDT/Sell 40,000 USDT/Buy
Profit 5,000 USDT 5,000 USDT

 

Factors Affecting Your Futures Returns

1. Whether you can profit from futures trading depends on whether your position direction matched the price trend.

2. The amount of your returns also depends on the position amount you hold and the price gap between the buying and selling price. When your position direction matched the price trend, the larger the gap and amount, the larger the returns.

3. Leverage will also affect your returns. When you choose the correct direction, the higher the leverage, the more considerable the profit. However, if you go against the market, the higher the leverage, the higher the risk.