Best Risk Mitigation Strategies for Crypto Futures Trading

Jan 2, 2025

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Ibiam Wayas

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Engaging in cryptocurrency futures trading can indeed be exhilarating but also may usher in financial strain stemming from the unpredictability of market conditions.

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In order to trade futures profitably, one must maintain enhanced control over individual trades and overarching trading strategies. In the next stories are some of the best strategies to follow.

TP/SL is important to trade futures. A take-profit order assists in securing profits when the price moves as predicted, whereas a stop-loss order helps curtail losses when the market moves against you.

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Using Take-Profit and Stop-Loss Orders

Employing Price Protection

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Exchanges usually extend a feature known as Price Protection. It proves invaluable in instances of irregular market conditions when there is a substantial divergence between the Last Price and Mark Price.

Leveraging Customized Default Leverage

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For everyone looking to trade futures, it is wise to commence with leverage ranging from 2X to 5X.

Establishing a Robust Trading Plan

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In crafting a trading plan, consider identifying entry and exit indicators, determining position-sizing, and deciding stop-loss placements.

Limiting Risk

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You can limit the capital allocated to a single trade to no more than 5% of the account value, ensuring that the entire account is not overly exposed to one position.

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