Binance Futuresallows traders to use leverage and to open both short and long positions. After a first look and test positions, we can say that the platform is very similar to that of Binance’s spot exchange, which makes the transition very easy. The user experience is just as smooth, and trading is relatively simple.
??What is Futures Trading?
Futures are contracts related to specific assets that allow individuals and companies to buy or sell an asset at a predetermined price and date in the future. This is usually used by traders to hedge risk in different markets and also by companies to hedge against speculation in the market. A company could simply purchase commodity futures if they need these assets in the future and don’t know what could happen in the coming months. Virtual currencies can also be traded through futures contracts that are provided by different parties in the market. BINANCE is an exchange that gives this opportunity to users from all over the world.
??Open a Binance Futures Account
First you’ll need to create a Binance Account.
1. Enter your email address and password.
2. Then click on ‘create account’
3. You should then receive a verification message in your email – follow the instructions in the email to complete your registration.
If you already had a regular Binance account (or you just created one), you can open your Binance Futures account by navigating to the Binance homepage and first clicking on the ‘Trade’ button, and then clicking on ‘Futures’.
Once you have pressed there and you are in the Futures screen, you will see the option that would allow you login to the futures trading services offered by Binance. In the Open Futures Account, you can click on Open now in order to move forward and start using this service offered by the Binance Exchange.
??Funding your Binance Futures Account
In the exact same corner you can actually find little button that says "TRANSFER" and that is how you can actually charge up your balance on the Binance Futures Exchange. If you hit transfer in here, you can see that in here, we are talking about USDT Tether that you have to add and not Bitcoin.
If you don’t have any USDT in your Spot wallet, you will need to first purchase some USDT on your regular binance account, and then you will be able to transfer the funds to your Futures Wallet. You can either purchase the USDT by card or deposit it into your Spot Wallet.
??Cryptocurrency Supported by Binance Futures
Binance Futures did extend the variety of trading pairs. Besides Bitcoin (BTC), the platform offers up to 75X leverage trading of the following pairs:
Ethereum (ETH) / USDT
Ripple (XRP) / USDT
Binance Coin (BNB) / USDT
Bitcoin Cash (BCH) / USDT
Cardano (ADA) / USDT
Stellar (XLM) / USDT
Tron (TRX) / USDT
EOS (EOS) / USDT
Litecoin (LTC) / USDT
Ethereum Classic (ETC) / USDT
Chainlink (Link) / USDT
Monero (XMR) / USDT
Dash (DASH) / USDT
Zcash (ZEC) / USDT
Tezos (XTZ) / USDT
New pairs added June/July 2020: Zilliqa (ZIL), Kyber Network (KNC), Compound (COMP), Swipe Wallet (SXP), and (OMG).
??Leveraged Trading on Binance Futures
Trading on Binance Futures is simple. The platform allows trading Bitcoin/USDT with up to 125x leverage, and up to 75x for other cryptocurrencies. In contrast, other margin exchanges allow leverage of up to 100x. You should also choose what type of margin you would like to trade with, which can be either: Cross Margin or Isolated Margin.
Cross Margin a margin method that utilizes the full amount of funds in your account when trading to avoid liquidation.
Isolated Margin by isolating the margin the position uses, you can limit your losses to the initial margin set, so the full amount of funds in your account is not utilized.
??Binance Futures Trading
There are different orders that traders can place while trading with Binance futures. This is going to make it easier for traders to find the solutions they need and to perform the trade that they are looking for. There are four types of orders that you can place on the platform:
Short or Long Position
Short = Selling Bitcoin
Long = Buying Bitcoin
Limit orders are used when you want to buy at a specific price. Limit Orders make reference to the ones in which a trader sets a price for the asset he wants to buy or sell and waits until the trade gets filled. It can take a long time or be done in just a few seconds after the order it is placed. This will depend on the price established.
The most basic order type, market orders are used to buy Bitcoin at a spot price. Market Orders allow traders to buy or sell an asset (in this case a contract) at the current market price.
These are typically used as a stop-loss mechanism, but not always. Stop-Limit orders would allow you to place a limit order as soon as the price reaches a stop price that you previously select. Once the price of the asset reaches that stop order, the limit order will be placed in the order book.
This is mainly used to set the price at which you wish to collect your profits. Take-Profit-Limit orders are those that need a trigger price and a limit price. This kind of order can be used to reduce open positions. This can be very useful to manage risk and lock in profits as soon as the asset reaches specific levels in the market. In a similar way, the take-profit-market order will offer users the possibility to get a trigger for their order using a stop price.
Closing a position
Closing position in the futures market means that taking out an equal but opposite contract to existing one. To close out of a long position you would take a short position with the same strike price, expiration date and assets. As soon as you hit the “Market” button, your position will be closed and you will see the funds return to your margin account.
??Binance Futures Trading Fees
All VIPs of spot market are also VIPs on futures market. Futures fee tiers mirror the spot market but are generally lower, also the volume requirement for each VIP tier is 5 times that of the spot market due to leverage provided.
??Binance Futures Security
Binance is most secure cryptocurrency exchange, and they are keeping users’ funds protected and secure. Even if the exchange were to get hacked, which it has in the past, Binance has introduced a so called SAFU fund. Beginning last July 14th, the exchange has allocated 10% of all trading fees into its Secure Assets Fund for Users (SAFU) in order to offer additional protection to users in extreme cases. Those funds are stored in a separate cold wallet.
"The investments and services offered by Binance may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor."
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