Crypto Leverage Trading - Derivatives - How to 10x Your Profit With Just One Step

Crypto Leverage Trading - Derivatives - How to 10x Your Profit With Just One Step

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hello everyone good evening thanks for joining us live today we are going to be talking about these durabilities okay so very very often we have questions from our uh you know facebook instagram and also the community itself uh about you know how we regularly making i know this kind of like three digit or even four digit hour line okay so and our answer to them usually is you know we are using derivatives right so and i know uh most of the time they do not understand how you know how does that work actually okay so we also notice that many are very interested in this topic so today myself and you know lily will be sharing with you you know uh more about the derivatives and you know how you can turn a ten percent profit to 100 probably just one additional step right okay i hope that excites you because uh i'm already very excited to share as well okay so my name is uh crypto turtle and i also have uh lily with me tonight all right everyone hi everyone good evening okay yeah so okay lily is actually known as the retiree trader who has helped many retirees uh who actually feel that they will outlive you know they are saving and you know has to be dependent on others yeah so she actually teach you know this retiree how to trade and make an additional income so that they are not afraid of you know what i just mentioned will happen to them right okay yeah so great i i saw some of your life with us right okay so can you give us you know some some reaction you know so that we know that you are actually here with us you know maybe you can type in a chat b s i okay bsi stand for binance sg investor facebook group uh or you know just tap on the like button yeah so we all know that we all we know that you are here with us right okay yeah all right uh thank you very much okay so the agenda for tonight of course uh derivatives okay so divided into two parts okay so the first part will be talking about futures contract okay so uh you know i'll be talking about that okay and then part two will actually be talking about options okay and you know lily will actually uh talk to you more about it right okay yeah so lastly lastly i also have a coin pick of the week okay that we are in fact bullish about right so maybe you may be able to apply to this you know coin uh after learning you know what is derivatives tonight right so uh you know uh stay tuned to the end to find out if you want to know which coin that we pick all right all right so uh quick uh disclaimer first right so do note that whatever discuss tonight will be meant for educational purpose and general information only right uh because in any investment it is imperative that you also do your own research do your own new division as well right so we also want to mention that we are not representative from this finance or its subsidiary right okay all right okay so directive part one future contract okay so you can see actually this is a screen capture from our you know instagram story so if you want to see more you can follow us you know this is our handle right so you can see that this the like 10x 20x and all that so so uh and because of that we have been receiving you know messages you know how we actually do it yeah so uh therefore we decided to have a you know this live session tonight to talk about it okay so we hope everyone watching will be able to learn something valuable tonight right okay so first question what is derivatives right okay so a derivative is actually a contract okay between two or more parties okay and the value is actually based on an underlying financial asset example cryptocurrency okay bitcoin interior and all that right so let me give you an example all right so imagine do they uh know myself and lily we are just chatting okay and we were talking about you know anything out under the world right okay and then maybe we will talk about bitcoins okay let me say you know bitcoin price is at 40k right and then i'm bullish about bitcoin i totally i think it will go up you know to 45 000. okay that's why you say i'm green okay because i'm bullish okay so i think we kind of go up to 45 okay lily disagree with me she said hey you know leslie know i don't think so i think you know it will go down okay because she's bearish right that's why she should wait okay okay so they will go down to 35 000. natalie okay since we have opposing you know these views about the bitcoin price right so you know how about we make a bet okay beta beta okay so to have a bet we set up a contract a simple contract okay now i say okay if bitcoin goes up to 45 000 okay that'll be scenario number one okay you have to pay me the the you know the the difference in price 45 minus 40. right should you pay me five thousand dollars right that's scenario number one okay scenario number two okay it goes down all right then i have to pay lily 5 000 in profit okay so you notice that this scenario right there's actually a you know this contract between the both of us right so make sense uh you know uh something like an agreement right and in this scenario right in either of these two scenarios do we but did we buy any bitcoins no right so we only based on a contract and the underlying asset which is bitcoin in this case will determine how we make a profit does that make sense so it is a contract you know and the value is based on the underlying assets okay in this case of course bitcoin okay i hope uh that makes some sense a very simple example of what is derivatives right okay so the next question is like you know uh where can i actually start trading derivatives okay that sounds interesting no and i can i just write a contract with my friend you know to play this game of course you can okay but of course i'll say it's not recommended because it's not legally binded or some or things like that right you need to protect yourself okay make sense so typically you can actually do it on the exchange itself okay like uh no base binance ftx and this uh kraken okay so the next question is um why no why why would i want to use derivatives why would i want to contract i would no why not just buy bitcoin right if it goes up to 45 000 i still make 5000 why do i need to draw a contract you know uh with finance or you know with me with lily in this case okay so why right okay so the main reason why anyone would use the revertibles is because it is a leveraged instrument okay so what does that mean it also means that it uh can increase your i will say potentially increase your rewards okay your profit right so how does that work example okay if you are using a leverage right okay so today if you make a 100 investment uh in a typical spot trading reduct leverage if the price goes up by 10 you make 100 you make a 10 profit okay very straightforward right okay so but if you are using a 10 x leverage ten times okay then the ten dollars profit will turn into hundred dollars okay the 1000 profit will turn into ten thousand dollars profit okay so why because simply is 10x meaning you say a ten percent profit would become current percent because it's multiplied by ten times very very simple right so right now you could be thinking hey if it's so good why isn't everyone using it okay and it sounds you know too good to be true no i know just you know i just invest 10 next and that's it right so of course there's a you know there's a catch or rather there's a pros and cons right in everything okay so of course to be fair okay your loss okay will also be multiplier right so a 10 loss will become a 100 loss okay make sense uh so it's also multiplied all right so next right what i'll do is i will give you a walkthrough in binance.com

itself because i believe many people are actually using it uh you know uh but maybe you have not explored these features okay so it's very simple and at the same time i will explain some of the points that i mentioned earlier alright okay so let me switch my screen now give me a second all right so typically when you go into binance this is what you see very very familiar right so instead of going to your usual trading classic or advanced whichever you are using on the spot trading right again then you instead go to derivatives and go under usd and future so once you click in right actually this is what you will see okay if this is the first time you're coming in right then you actually need to take a quiz okay so no worries you can take the quiz as many times as you like okay until you pass and it's not very very difficult okay so so uh you should be able to pass it right and after you take the quiz usually there will be a you know uh message to tell you that if you want to open up this uh future training okay just say yes right and then this will pop up and then realize that hey actually it doesn't look very much different from the spot trading right okay it's just that there's a few other things that you need to take off only okay so typically one more thing you take a look i'll take a look take note of is the leveraged amount okay for example this is btc right bitcoin okay so choose the perpetual on a perpetual one so typically is you know against the usdt the stablecoin okay as per your spot trading right okay so what you do is you can you know it has the usual limit market order and all that right it's very very similar okay so the only thing you need to adjust is the leverage okay so that's what happened you can actually go up to 120 times okay 100 times okay meaning you say if you make one dollar profit in a normal sport trading if you do this 100 xm you do this 100x you will actually get a hundred dollars okay hundred times okay again are so good enough so you know like you know uh i know i can 100x okay but you must remember uh your loss also 100x right so so you see this can be a double edged sword now okay uh in a normal sport trading okay it's i would say it's very difficult to have a total loss of your position okay what do i mean by that it means that the position go to zero okay very very hard okay why because it means that the whole thing collapse okay no more bitcoin because how does how does your position go to zero it has to be minus hundred percent okay that means everything is gone you get in the market whatever crash already okay so it's very high you can see like a fifty percent sixty percent even like 100 is i would say almost impossible unless the whole thing collapsed okay i hope i hope you agree there okay but doing a leverage of 100 times right what does that mean it means that if you drop by one percent your whole position is gonna okay oh that makes sense so if you go 10x for example okay and it goes down by 10 your whole position is gone also okay because 10 times 10 equal 100 okay so i hope that makes sense huh so this is actually how you can start using future in finance right so um uh before you do that right you need to transfer some fun from your fiat and sport wallet okay your your user spot trading yeah do your m future first okay typically the usdt all right okay so when you are you close a position to take profit what do you get in return usd okay yeah but you don't own the bitcoin uh you know as an underlying asset you only own the contract okay i hope that makes sense right so what is cross and isolated so make sure you choose isolated as a i will say as a beginner okay it means that if there's a liquidation they only liquidate the isolated coin that you have chosen okay for this case in this case it will be btc right if you choose cross they will try to liquidate everything to protect your position okay so let's say ethereum you have cardano everything inside your future your future account okay so while sleeping you know whatever happened you know there your your bitcoin position is gone all right so they'll take your ethereum and try to protect your bitcoin and they'll atm you know let's say let's say you know a major crash happen right so you may wake up with a shotgun okay but if you juice choose isolated they only touch your bitcoin if you are investing in the bitcoin okay i hope uh that makes some sense right okay yeah so this is a simple walkthrough in the binance future you know interface right so yeah let me go back to my slide give me a second all right okay yeah so um by read this our referral code for the binance future so take note that the futures in binance has a different referendum okay so you may think you know leslie i already have a finance.com so i don't need your referral link okay but when you open up the future contract it actually has another another link okay but it's not mandatory to use so if you choose not to use it it's fine as well if not yeah you can replay the video and you know uh just kdc in when kd's number in when you know the finance future asks for a referral code okay yeah so again but not mandatory to use right okay so uh in my opinion in my opinion future works best when okay you actually already have a proven strategy that you have been using right okay so it has been you know giving you like a uh consistent profit you know consistent wins you know maybe you know out of 10 trade you can win seven seven eight nine or even ten trades okay uh out of ten for example okay then i think that this works very good uh very well for you right because all you need to do is apply just one more steps okay so using the leverage okay but of course there are a lot of things to take note of when using future number one is your risk management of course is this something that you uh you is a risk that you're willing to take okay so is it a something that you when you do okay uh you can still sleep at night okay i will say that that will actually measure how well your risk management is okay so i hope that makes sense huh okay so and also position sizing okay are you going to put in your your you know life savings okay in the future and of course i think that you know uh won't make sense okay so uh you know and and and um if the position sizing right okay in sport trading um is still required okay if you have not been doing so okay i hope that uh maybe you you you can you know google a little bit what is position sizing okay so but it's even more uh important when it comes to future contract okay so if you're going to do 5x so very simple your usual position sizing you have to divide by five okay it's actually very very simple okay how you convert your spot trading voltage sizing to your future trading okay it's not say that it's not saying that you know i have 10 x you know i i just put the same sizing in hope that i'll earn even more okay because your loss is also 5x 10x all right okay so i hope that makes sense okay so number three to take note is owning do you want to own crypto as an asset okay because remember we say that this is a contract you don't actually own the underlying asset which is bitcoin ethereum whatever coin they're looking for okay so maybe you are true believer in this particular crypto and you want to hold it for long term okay then using future using deliveries uh will not work uh does not work that way okay because you are just buying a contract okay to make a profit right so if you want the actual crypto then you probably want to buy the actual crypto all right okay i hope again that makes sense right so a suggestion for beginners you may be thinking you know actually what you say is pretty good you know what 5x10x even 100x i saw you know on the binance.com interface okay but you may be afraid right so uh i would say suggestion for beginners okay uh beginners in terms of future you you may have been trading for a few months few years but you have not used future before okay this is the first time you're going to try using future you know maybe after uh attending this live workshop right okay so why not just try out the 2x or 3x first because if you ask me i'll stay it's still pretty fantastic right imagine you can regularly make a 20 30 percent kind of returns roi and all that and then to let's say you know you get 40 to 60 percent okay 3x from 20 becomes 60 still quite fantastic right if you ask me okay and i'll say the risk of course considerably lower if you are compared to using 10x and all that all right so i hope uh that makes sense but again of course it still has reason because 3x you just need the price to drop by 33.3

then your whole position is gone okay and crypto is not is is not uncommon okay to see a 30 40 percent drop as well okay so you really need to know your you know risk management your risk every time you know that all right okay okay so final key takeaway um a contract okay uh or rather derivatives is actually a contract between two or more parties okay so it's typically traded on an exchange okay like finance uh ftx and all that okay the prices for derivatives derive from the underlying assets okay for example bitcoins okay and uh it's usually a leveraged instrument which increases potential rewards and also reset because you multiply your rewards you also multiply your risk okay i hope that makes sense and of course uh some things to take note uh we'll say refer to the previous slide all right so uh you can replay this video again okay yeah with that of course as promised uh you know we have a coin pick of the week okay before i pass it to uh lily for part two which is the option part right okay so of course this is just a personal opinion again another disclaimer this is not a financial advice okay please do your own due diligence as well all right so what is the coin that we are bullish about in the coming weeks it's actually uh poker dots right so uh suggested entries below 30 dollars okay the i'm not sure about the price right now to be friends okay so but the this afternoon i checked it was about 29 plus bucks okay so we think that you know this price is a i would say uh a pretty good price okay to get in all right so i hope you have uh you know learned something today and with that i will pass the time to delete like on the second part options thank you leslie i mean you have really explained the red derivative really really well and um on my part i'm gonna share on stock options as a alternative um to 10x your return versus stocks yeah so i hope at this point everybody is keeping well for myself i'm a bit down today with a bit of bad runny nose so if i would the sniffer this and that oh i sound a bit um bad so please pardon me so i will try to you know deliver my slides uh and my presentation with you uh to you uh as well as i can yeah so again uh this is lily here and i'm really glad to meet you today so for today i am going to share on um sby as a form of uh or rather as a as a stock for options purpose why i choose spy is because sby or s p 500 is an etf and it comprises of 50 large and kept u.s stock and some of the stock here is like berkshire headaway apple and amazon facebook itself alphabet alphabet there's class a and class c shares um jp morgan and navidia and the latest uh that was added to the top was uh is tesla right and what you can see here is if i look at the five-year chart right for apple here you see it is up trending as well as microsoft and for amazon it is trending up as well right and fb as well sorry um is there anything okay i hope you're hearing me right and um this is a google or alphabet and um workshop head away and you see that this spy chart right is trending up it is a com a combination of all the stock 500 stock here and generally it is trending up and although the stock may go up and calm down though basically the stock is the high is getting higher and the lows are higher as well okay so that's why i want to use this stock to represent it for you so that's easier to understand so let's say assume you have 2 000 as capital to start with right so you have two options okay on january the fifth when the stock is near the support line spy last trader and with two thousand dollars you can only buy five shares and you pay 1.8k however as an option trader myself i decided to buy a call with dte of 136 this is it to expiry i choose may 21st strike price is 371 because the last traded is let's say 371 right 371.3 so i

just take 371 and i pay a premium of 1910. like what leslie said earlier right an option contract is a contract you don't own the stock whereas if you buy five shares here you actually own five shares so when i buy the call option i pay 1910 now move forward to january 21st that is about 16 days later when the stock is near the resistance meaning to say it has gone up right because we say that s people is always trending out so if you decide to sell off your five stock to profit from it your profit is only 64.55 which is actually 3.5 percent which is not too bad however when i close off my buy call position by selling it off i collect a premium of 2.6 k because one

contract in an option for option right is equal to 100 shares so i multiply by 100 so my premium is 2.6 i collect and then that of what i paid my profit is actually 742. so you can see that the return is 38.8 percent

compared to the stock is only 3.5 which is actually more than 10 now let's move forward again let's say i profit from it and i go and do it again right now i wait and wait for the stock to retrace back on january to 29th so the last trade is this amount three seven zero so again let's say i find five stock okay and i pay 1.8 again but if i buy a call again with dte one for zero days now it's in june instead of may okay i would need to pay a premium of 2.2 so again when i fast forward to about 11 days later february 11th when the stock is has trend up to near the resistance i decide to sell off let's say if i have five stock i sell the five stock my profit would be 133 which is about 7.2 so for actually 11 days 7.2 is not too bad however if you look at mine by composition if i were to close it by selling off the position i get 3.2 k premium or a profit of 986 which is actually 43.3

can you see the power of options so for stock wise right if i buy and sell my profit for these two trades so far would be 197 versus for options my profit is 1.7 already it's really really fast you can see now you may say that hey maybe that is lucky let's move forward and take a look so may the fifth the stock has retraced down again and assuming i buy five stock okay so i paid 1.9 however when i buy a call dte now is 133 i choose a july 16th so i pay about 1.8 k because like i said one contract is 100 so it's times 100. so fast forward again 11 days to march 16 when the stock is near the resistance again right and i decided let's say if i had the stock five stock i sell it out again my profit is only 61.4

okay or 3.2 percent however for my options when i close it out i collect a premium of 2.5 which my net profit would be 7 to 0 which is actually 38.5 percent so you can see it is really

very powerful so again let's sum it up for stock profit it's only two five nine okay from the very beginning where else for options is two four four eight which is actually more than 100 of what you initially started out let's imagine two thousand dollars right that was the two thousand dollars when we started so now move forward again another one um this is kind of like the last i'm showing you and i can see her exponential growth so on march 24th when the stock has retraced again okay and i buy five stock again because my profit so far from stock is only two five nine so two five nine plus the two thousand i can't afford i can't even afford to buy six stocks yeah but for my call or positions right i have enough money because i had actually profited 2.4 so at this price strike price 387 my premium is 2o for 2088 so i can afford to actually enter two buy call options with expiry of 149 and i times two i pay a premium of 4.1 so imagine my profit was two two four four eight plus my two thousand actually i have four point four k so this is more than enough to cover right and fast forward to april 19th last trade price and i if i were to sell off my five stock my profit would be one three eight forty five which is ever actually seven point one percent not too bad but when i close off my core position profit for the two contracts that i sell off would be 704 which is 17 so again let's do a direct comparison yeah my initial profit from the okay my initial investment for the stock is actually 1.8 right when my profit is only 397.

earlier 259 plus this is about 397. my roi from the initial investment right i invest this amount is only 21 however if you look at my options right when i take options my prof uh initial investment was one nine and i grew it to this at the return of this 165 percent so you can see that with just a tweak instead of just owning the stock of course with options it's a contract you do not own any stock whereas for this it versus only a stock okay but this return is way above what i can collect when i own the five stock so i can release you can really see the power options yep and white as i mentioned i choose sby is because sdy is a stock that is trending up is that etf comprising of the strong stocks right the 500 stocks yeah so that's why i choose spy uh for for this strategy so i really hope you have really enjoyed my sharing and if uh you want to invest again like i said um as leslie said earlier right this is just a sharing session and it is not meant to be any form of investment and fines so if you want to invest please ensure you do your own due diligence and seek necessary advice before you proceed okay and i thank you and i hope i can see you in the next fb life again so i'll hand over to leslie leslie okay thank you lily yes so i hope everyone has you know benefited from today's sharing right okay so if you you know feel that you have benefited right so maybe you can just give us some reaction again you know maybe just tap on the love button this time okay so you know that you know you have enjoyed yourself okay and please help us to share also if you think that you know it's some uh you know it's something that your peers may also um benefit potentially benefit from it right okay yeah so thank you everyone so tonight is also the mid autumn festival right so it means that the moon is the fullest right in the whole year right so okay so in crypto usually we will say to the moon right so today will be a bit different so i would say to the spoon right okay and uh you know try it safe and stay safe as well so we will see you in the next facebook live alright okay see you everyone good night happy meal term everyone see you again bye

2021-09-23 17:27

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