I am trading crypto futures (perpetual trading) on Binance… Something came to my mind and I was thinking… I know it might be a silly question but if you all could help me that would be great.
My question is: Where is the money (USDT) from trading futures coming from. Let’s say I open my LONG position on BTC/USDT pair, use 10X leverage and i put 100$ onto it.
So my position is worth 1000$. if the bitcoin price moves for let’s say 1% and I’m 10% in profit so (10$) would just like to know where that 10$ came from? Is it from other traders that just went short and are now losing money? Because that is like in the spot market but in the futures markets you don’t move the price like in the spot market where if you sell, you have a little effect on the price obviously if you have a large amount but how is it in perpetual markets? Could somebody explain, if you can how is this working? Is the USDT printing just from thin air?