Hello, this is Anfelia_Investment. I'm glad you are interested in trading USD-M futures on Binance. Here is a basic guide that I created for you:
1. What are USD-M futures? USD-M futures are futures contracts that are settled in the USDT (Tether) stablecoin, which is pegged to the value of the US dollar. These contracts allow you to speculate on the price movement of cryptocurrencies without having to actually own them. You can trade with leverage, which means you can increase your exposure to the market with a smaller amount of capital.
2. How does leverage and margin work? Leverage is the relationship between the value of your position and the margin you need to open it. For example, if you have 10x leverage, you can open a 1000 USDT position with only 100 USDT in margin. Margin is the minimum amount of collateral that you must have in your account to keep your position open. Margin is divided into two types: initial margin and maintenance margin. The initial margin is the percentage of the value of your position that you must provide as a deposit when opening the position. The maintenance margin is the minimum percentage of the value of your position that you must maintain in your account to avoid liquidation. Liquidation occurs when your margin level drops below the maintenance margin level, meaning you can no longer sustain your position and the exchange automatically closes it. The margin level is calculated by dividing your account balance by the value of your position. You can adjust the leverage of your position according to your preferences and the risk you want to take. The higher the leverage, the higher the potential profit, but also the higher the risk of liquidation. Binance uses a sophisticated risk control system and settlement model to facilitate high leverage trading through the maintenance margin model¹.
3. How to open and close a position? To open a position, you must choose the trading pair you want to trade, for example, BTC/USDT. Next, you must select the type of order you want to execute, for example, a market order, a limit order or a stop order. A market order is executed at the current market price, a limit order is executed at a specific price that you set, and a stop order is executed when the price reaches a certain level that you set. You must also choose whether you want to open a long or short position. A long position means that you believe the price of the asset will rise, while a short position means that you believe the price of the asset will fall. To close a position, you must do the opposite of what you did to open it. For example, if you opened a long BTC/USDT position with a market order, you must close it with a market order on the opposite side (sell). You can also close your position partially or completely, depending on your strategy and objectives.
4. What strategies and tools can I use? There are many strategies and tools that you can use to improve your USD-M futures trading. Some of the most popular are fundamental analysis, technical analysis, indicators, chart patterns, trend lines, support and resistance levels, stop loss, take profit, trailing stop and hedging. Fundamental analysis is based on the study of factors that affect the value of an asset, such as news, events, economic data, etc. Technical analysis is based on the study of patterns and trends in the price and volume of an asset, using mathematical and statistical tools. Indicators are formulas that are applied to price and volume data to generate buy or sell signals. Some of the most used indicators are moving averages, RSI, MACD, stochastic, Bollinger bands, etc. Chart patterns are geometric shapes that form on price charts and indicate possible trend changes or continuations. Some of the most well-known patterns are the double top, double bottom, shoulder-head-shoulder, triangle, rectangle, etc. Trend lines are straight lines drawn connecting high or low points in price and showing the direction and strength of the trend. Support and resistance levels are price zones where supply and demand balance and where the price tends to bounce or break. Stop loss is an order that is placed to close a position automatically when the price reaches a predetermined loss level. Take profit is an order that is placed to close a position automatically when the price reaches a predetermined profit level. The trailing stop is an order that adjusts automatically based on price movement, following a fixed distance or percentage. Hedging is a strategy that consists of opening a position opposite to the one currently open, in order to reduce risk or protect profits.
I hope this guide was helpful for you to start trading USD-M futures on Binance. If you want to learn more, I recommend that you visit [Binance Academy](^2^), where you will find articles, videos and courses on cryptocurrency trading for beginners and advanced users. You can also consult the [Help Section](^3^) of Binance Futures, where you will find frequently asked questions, tutorials and tips on how to use the platform. Remember that futures trading is a high-risk activity and you should do it with caution and responsibility. I wish you much success in your trades! 😊
Bibliographic references
(1) USDⓈ-M Futures Leverage and Margin | Binance. https://www.binance.com/es/support/faq/apalancamiento-y-margen-de-los-futuros-de-usd%E2%93%A2-m-360033162192.
(2) Complete Guide on Cryptocurrency Trading for... - Binance. https://academy.binance.com/es/articles/a-complete-guide-to-cryptocurrency-trading-for-beginners.
(3) USDⓈ-M Futures Leverage and Margin | Binance. https://www.binance.com/es-ES/support/faq/apalancamiento-y-margen-de-los-futuros-de-usd%E2%93%A2-m-360033162192.
(4) What is a Trading Journal and How to Use One - Binance. https://academy.binance.com/es/articles/what-is-a-trading-journal-and-how-to-use-one.
(5) Getty Images. https://www.gettyimages.com/detail/news-photo/in-this-photo-illustration-the-binance-logo-is-displayed-on-news-photo/1496426886.
