Buying Futures will generally result in a profit if the price of the underlying increases:
EXAMPLE: LEVERAGED LONG | Assume you buy 10,000 Bitcoin-Dollar Futures at 5,000 USD. The price increases and you exit at 6,000 USD. Your profit is ( 1 / 5,000 - 1 / 6,000 ) * 10,000 = 0.33 bitcoin, or about 0.33 * 6,000 USD = 2,000 USD at the current price. |
Selling Futures will generally result in a profit if the price of the underlying falls:
EXAMPLE: LEVERAGED SHORT | Assume you sell 10,000 Bitcoin-Dollar Futures at 5,000 USD. The price falls and you exit at 4,000 USD. Your profit is ( 1 / 5,000 - 1 / 4,000 ) * -10,000 = 0.5 bitcoin, or about 0.50 * 4,000 USD = 2,000 USD at the current price. |
In both scenarios you can lose if the price does not go your way. Please make sure you understand the risks associated with trading on the platform.