Binance Futures provide traders with access to crypto futures contracts, including popular ones like Bitcoin futures. These contracts allow you to speculate on whether the price of a crypto asset will be higher or lower by a specific date compared to its current value. Here’s how it all comes together:
Understanding Futures Trading:
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Going Long and Going Short:
Going Long: When you go long, you buy a futures contract with the expectation that its value will rise in the future. For example:You anticipate that the BTC price will increase.You go long and buy a BTCUSDT futures contract.If the price indeed rises, you make a profit.Going Short: When you go short, you sell a futures contract because you expect its price to drop. For example:You anticipate that the BTC price will fall.You go short and sell a BTCUSDT futures contract.If the price indeed drops, you make a profit.
Trading on Binance Futures:
Here’s how you can get started:Log in to your Binance account.Go to the USDⓈ-M (USDT-based) or COIN-M (coin-based) Futures trading page.If you don’t have a Futures account yet, follow the steps to open one.Transfer USDT or USDC to your USDⓈ-M Futures Wallet or other coins (e.g., BTC) to your COIN-M Futures Wallet as margin.Choose a trading symbol (e.g., BTCUSDT) and select your preferred leverage.Customize your order details (order type, quantity, etc.).Click [Buy/Long] or [Sell/Short] to place your order.
Calculating Unrealized PNL and ROE%:
USDⓈ-M Futures (Using Mark Price as the basis):Unrealized PNL = Position Size * Order Direction * (Mark Price - Entry Price)ROE% = Unrealized PNL in USDT or USDC / Entry MarginCOIN-M Futures (Using Mark Price as the basis):Unrealized PNL = Position Size * Contract Multiplier * Order Direction * (1 / Entry Price - 1 / Mark Price)ROE% = Unrealized PNL * Mark Price / abs(Size) * Contract Multiplier
Remember, Binance Futures allow you to leverage crypto price changes without actually holding the assets. So whether you’re bullish or bearish, there’s a futures contract waiting for you! 🚀
