MrCurious:

Hello there, what an applaudable question!
I can see you truly have been pondering on getting your feet all in.
To answer your question;
we all know the opposite of positive is negative.
In derivatives, which isn’t any different from any physical contract trade activities (Oil & gas deals, wholesalers deals and other large businesses exchanges), when your trades start going the opposite way, you start accruing loses. It’s up to the trader to quickly foresee if there are any chances for a quick retrace (market recovery) so as to recover all prior losses. If there is, he/she can stay a little longer to recover back all the loses and then make profits, but if he/she thinks the market can’t recover, then he can quickly stop the trade by selling those contracts at a percentage loss and then wait for other trading opportunities to recover back those losses.
In trading, no one is bound to be 100% successful! Some trades will bring you profits and some will bring you losses.
Even a moimoi seller that miscalculated/mis-speculated can sell her moimoi at a loss when she notices that the moimoi is becoming stale and will result in a waste if she doesn’t bring down her prices and sell before the day runs out! I mean, Who buys sour foods?!
There are always three outcomes in a trade. Either you profit, lose or stay neutral.
To better explain this for you, let’s take this as an example;
You as a normal nigerian citizen, you somehow got hold of some unverified information that oil & gas workers are planning to strike and suspend activities till further notice. We all know what effect events like this will have in the society - Fuel scarcity!
When oil worker strike = Shortage of Oil
Shortage of Oil = Lesser fuels to sell by marketers (fueling stations)
Lesser fuel in circulation = Scarcity
Scarcity = Spike in Commodity’s (in this case fuel) price!

So based on these assumptions, we know there can be three possible outcomes;
Either the news turns out to be;
1. true
2. or it’s just a hoax
3. Or just an Adverse/trap information

So as a trader who wants to earn some profits sharp, we can just buy some fuel now at the possible lowest price. Then wait till when these event we for see would happen and if the news turns out to be true, and the price finally shoots up, then we can sell what we bought at a lesser price for a higher price to maximize profits. Just simple economics principles here.

If it turns out to be just a dirty rumor, then nothing happens. The price remains the same. No loss/profits in this case. No case!

But if it’s the 3rd outcome, which is an adverse info, meaning that the source for that information spreads it in the opposite, that is, instead of oil workers going off, the government instead wants to increase workforce in the oil sector, then we can for sure say there will be double production which leads to abundant fuel, which ultimately leads to drop in prices.
So as for the trader who’s bought at a certain price prior to this event, then when the price starts dropping (like it did in the recent time), the trader is at loss.
A commodity you bought for $2 on April which dips to $1.50 in may will net you a -$0.50 profits (loss) per piece/quantity of that commodity.

This is the case in crypto derivatives too. You get to see your losses and profits in real time as prices are moving either against you or against the market.
But crypto derivatives is so powerful on its own than a physical market trade/exchange in such that, in whatever way you tend to speculate on, there’s always a way to profit.
Let’s take this example too, that people are buying lot’s of iphones nowadays, and you managed to get a leaked info from foxconn that apple will be introducing double the volumes of current iPhone productions in its next coming release.
Now for sure, that too will have effects on the smartphone market should apple really starts producing in doubles. Meaning that, more iphones for more people.
Now let’s assume the incumbent iphone 11 was selling at $900 per one. As a sharp business person, it’s safe to speculate that once those next batch of Apple flagships gets released, the prices of the current ones slashes.
How can you trade in this scenario and still make some profits? Well its simple, you simply leverage!
Here’s how, you go to a store that sells iphone, and you enter a contract with them to secure some iphone loans using another items such as a bank deficit, treasury shares or anything valuable as collateral plus you’ll promise to pay some interest (because no body gives loan without interest )
Now, you have some iphones! You can start selling them right away at their current prices ($900) and once you sell them all off, you save those precedes somewhere and wait till those planned apple flagships gets released.
For sure, once apple releases iphone 12, the incumbent iphone 11 price dips.
Lets say it dipped to like $700 per phone. Now you can purchase another set of iphone 11 at $700 each in the total quantities you loaned before and return them back to your lender, take back your collateral, pay the d*mn interest and still keep some cool stash of cash!
Now the calculation, since you loaned those iphone 11 and sold them all at $900 each, and later buy back when the price dipped to $700, you have netted a profit of $200 per Iphone!
This is similar to how derivatives works too. Except that you don’t move from one shop to the other. Lol. Just do your analysis which is as easier as estimating how long a 5 litters of gasoline would last in a generator. Lol
I’m sure you must have grabbed something by now. Sorry for the long write up lol.
So that is how derivatives works.
You just have to polish your trading skills and ability to forecast what effect an economical event would have on the value of goods and services and you’re good to go.
If i can walk my way from $1k capital to $46k then sure you too can as many have done before me.

MrCurious:

Thanks for those motivating words. I’m truly happy someone could benefit from sharing my trading experience.
On your question about binance, yes if course, you can do this totally on binance exchange. Binance is known to be the worlds most biggest crypto exchange which offers crypto spot trading, margin trading and crypto futures.
It’s also relatively easy to deposit on binance as you can choose to fund your binance trade account directly in NGN by using their paystack integrated payment gateway.
For tutoring, you can send me a direct whatsapp message on 08111403638.
Also, i will be posting my daily trades here so anyone could easily use them as a material for learning crypto derivatives.
Cheers and happy new month.

MrCurious:


Hi there, actually on the point highlighted, yes, derivatives is the main factor that led to the 2007 financial crisis. But you forgot to precise your emphasis that it’s nothing but mortgage derivatives.

Although both crypto and mortgage derivatives share some similarities but they are way too different on the other end.
Why? Because in mortgage derivatives, there’s always an secured physical collateral for which comes in the form of Home equity or Estate shares and the margin granted can’t exceed 100% of total equity value.

But in crypto derivatives, the reverse is the case. Instead of putting down a secured collateral, you instead leverage on the brokerage owns massive funds and the margin can reach as far as 2000% (in respect to some bigger players in the industry)

Crypto derivatives has proven reliable over the past few years and institutional investors have noticed the potentials in the new age trade instrument and are all flocking to it and buying up left over crypto stocks.

You may try to research more on crypto derivatives and how you can immensely benefit from it by checking on cryptopedia or everypedia.
Note: the latter works just like wiki but built on (EOS) blockchain and rewards users for making contributions on the platform.

MrCurious:

Hi there, it’s easy.
To trade, all you need to do are:
1. Gather all the mindset
2. Know your aims
3. Fund your account with either BTC, ETH, USDT, BCH or XRP. Deposits takes less than 5 minutes to appear in your wallet.
PROMO: if register through my link, and you deposit at least $100, you’ll get additional 15% welcome bonus, also, you’d get a bonus $30 in USDT. That’s a total of $45 for free!
Once your account have been funded, it’s time to decide on which market pair you will like to trade in.
Stormgain has the following market pairs;
BTC/USDT
ETH/USDT
XRP/USDT
ETH/BTC
XRP/BTC
BCH/USDT
XPR/ETH

now, after you have decided on which market to trade on, it’s time to choose which trade direction you want to go.
Let’s assume you decided to trade the BTC/USDT which means you want to buy/sell BTC for USDT. What you should decide on is either to buy BTC right at that moment, or to SELL.
If you go with buy, then that means you’re very sure and optimistic about BTC price going upward.
Once you buy BTC for USDT, lets assume you bought $10 worth of btc, before you finalize your purchase, you can choose a multiplyer which is up to 200x. This means that you can increase your initial $10 up to $2000! As per the assumption, you choose to go for 200x multiplyer which means, your $10 has been multiplied by 200 which is now $2k. You can now use that $2k usd to buy $2k worth of btc.
As bitcoin price to shoot up, so will your profits start increasing. In summarizations, if bitcoin price increases by 1%, since you are using a multiplyer of 200x, your own profits will increase by 200%. Yeah!
That’s 1% X 200 which = 200%.
This can give you immense profits over a short period.
If you need further training on this, i can be your tutor, also, i can be giving you daily trade signals which can net you within 7 to 18%+ a week. (Yeah, that’s how i roll).
I hope this helps sir.

MrCurious:


Hi there, actually on the point highlighted, yes, derivatives is the main factor that led to the 2007 financial crisis. But you forgot to precise your emphasis that it’s nothing but mortgage derivatives.

Although both crypto and mortgage derivatives share some similarities but they are way too different on the other end.
Why? Because in mortgage derivatives, there’s always an secured physical collateral for which comes in the form of Home equity or Estate shares and the margin granted can’t exceed 100% of total equity value.

But in crypto derivatives, the reverse is the case. Instead of putting down a secured collateral, you instead leverage on the brokerage owns massive funds and the margin can reach as far as 2000% (in respect to some bigger players in the industry)

Crypto derivatives has proven reliable over the past few years and institutional investors have noticed the potentials in the new age trade instrument and are all flocking to it and buying up left over crypto stocks.

You may try to research more on crypto derivatives and how you can immensely benefit from it by checking on cryptopedia or everypedia.
Note: the latter works just like wiki but built on (EOS) blockchain and rewards users for making contributions on the platform.