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What Is the Main Risk When Trading Cryptocurrency Futures Contracts?

High leverage and volatility can lead to forced liquidation and losses exceeding initial margin in crypto futures trading.
Greeks.Live03.11.25

What Is the Main Risk When Trading Cryptocurrency Futures Contracts?

The main risk is the potential for significant loss due to high leverage and volatility. Futures contracts obligate the trader to buy or sell, meaning losses are not capped at the initial margin.

Rapid, large price swings in the volatile crypto market can lead to immediate margin calls and forced liquidation, potentially wiping out the entire trading capital quickly.

What Are Perpetual Futures Contracts in Cryptocurrency Trading?
How Do Futures Contracts in Cryptocurrency Differ from Traditional Assets?
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How Are Futures Contracts Different from Forward Contracts?

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