I may be wrong or right but I still don't see reasons why traders would decides to waste there valuable funds to trade the FUTURE MARKET and still lost there profits and their entire capital when the spot market can be a good alternative to gather good profits but in a slow and steady race.
Why will you choose a high reward trading when your risk to reward ratio could be 50:50?
I chose derivatives trading because it is more attractive in terms of making a profit. In any trade, your ratio can be 50:50. 50% chance that the trade will go in the direction you want, and 50% chance that it will not go, but nevertheless, you are trading, even without borrowed funds.
You see no reason why a trader is wasting his time on derivatives trading. I'll tell you my reason:
I have been trading derivatives for 3 years now, using 1/40 of my deposit in a trade. For example, I have a balance of 6
BTC. I enter a trade at 0.15
BTC. I trade in micro scalper mode. The difference between buying and selling is only $120 - $150. It takes the current market 5 to 30 minutes for the price to pass $150. That is, it is fast trading. For each trade, the exchange charges 20% of the trade amount, that is 0.03
BTC. On a day, with normal volatility, you can make 5-6 such micro trades.
Still not seeing the reasons why a trader is trading derivatives? The reason is the potential profit that can be generated in a very short time. Not a single spot will give you that much for passing the bitcoin price of only $150. Having at your disposal a sufficiently large collateral and a developed system, you can engage in derivative trading, and successfully. But only not everyone has these resources.