Futures

Let's start with the theory, first of all futures is a contract. You don't buy an asset, you buy a contract.

Orders

Limit order: allows you to execute an order at the specified price.

Market order: is executed instantly at the current price.

Stop limit order: is a conditional order that is executed at the specified limit price after reaching the stop price.

Stop market order: is activated by the stop price. The difference is that when the stop price is reached, the order becomes a market order.

Trailing stop order: allows you to place an order when a certain percentage of the maximum/minimum of the market price is reached in conditions of increased market volatility. The order guarantees profit by leaving the position open and following the price in a profitable direction.

Post Only: order will be added to the order book, but will not be executed instantly even if there are suitable orders.

TP/SL limit order: You can set take profit and stop loss for an order before opening a position.

Types of Margin

There are 2 types of margin:

Cross margin - is the margin that is distributed over an open position using the full amount of funds in the available balance, which reduces the risk of liquidation of a losing position.

Isolated Margin is the margin set aside for a fixed-amount position. If the collateral amount is insufficient to support the loss, the position will be liquidated.

Leverage

Leverage is a tool that allows a trader to trade with borrowed funds. Simply put, leverage is a short–term loan issued to a trader by the exchange for a transaction. The competent use of leverage allows you to multiply the income from the transaction. For example, a trader sees an opportunity for a deal with a potential of 10% profit. If he opens a position for $100 of “his own", the income will be $10. If the trader takes the leverage x15 (increases the amount by 15 times), the position will grow to $ 1500, the potential income to $ 150 (excluding commissions). In fact, the trader will receive 50% of the profit to the starting capital in a deal with a ten percent income. But it also works the other way around. Leverage increases the risk of liquidation of a position in proportion to its size.