Let's demystify crypto Futures. Imagine betting on the future price of #Bitcoin. You predict a rise. someone else sees a dip.
17 Nov 2023, 11:45
Let’s demystify crypto Futures.
Imagine betting on the future price of #Bitcoin. You predict a rise; someone else sees a dip.
This prediction game is the core of a Futures contract. 🧵
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217 Nov 2023, 11:45
So, your perp’s performance hinges on two things: the price movement & the funding rate.
Understanding the basics and managing risks is key to a strong trading strategy. We'll be back tomorrow with another Futures knowledge drop.
Got questions? Drop them here! 👇
So, your perp's performance hinges on two things: the price movement & the funding rate.
So, your perp’s performance hinges on two things: the price movement & the funding rate.
Understanding the basics and managing risks is key to a strong trading strategy. We'll be back tomorrow with another Futures knowledge drop.
Got questions? Drop them here! 👇
17 Nov 2023, 11:45
Imagine a seesaw: if most traders are bullish, the perp price might inflate due to higher demand, raising the funding rate bulls must pay to bears.
In contrast, bearish sentiments can deflate the price, tipping the seesaw, and possibly leading bears to compensate bulls.
Imagine a seesaw: if most traders are bullish, the perp price might inflate due to higher demand, raising the funding rate bulls
Imagine a seesaw: if most traders are bullish, the perp price might inflate due to higher demand, raising the funding rate bulls must pay to bears.
In contrast, bearish sentiments can deflate the price, tipping the seesaw, and possibly leading bears to compensate bulls.