What Is Cooling-off Period Function and How to Use It
2021-06-01 03:56
Last updated: 28 June 2024
In our continuous effort to encourage responsible trading, Binance has launched the "Cooling Period" function for you to disable Futures trading temporarily to prevent compulsive trading behavior. It allows you to take a break and reflect on your trading strategies by temporarily disabling Futures trading features.
What is the purpose of the "Cooling Period" function?
Trading, especially in high-volatility markets, can sometimes lead to impulsive decisions and emotional trading. The cooling period aims to be a self-help tool to enable traders to impose short-term breaks on Futures trading, thus preventing compulsive trading behaviors.
How to activate the "Cooling Period" function?
1. Log in to your Binance account and go to the Futures trading interface. Click the settings icon.
2. Scroll down and click [Cooling Period].
3. Read the description carefully. Toggle on the button next to [Disable Futures Trading Function] to activate a cooling period.
4. Choose the duration of your cooling period and click [Confirm].
5. If you would like to amend the cooling period, kindly select the new time range and follow the instructions from the pop-up message.
What functions are restricted during the cooling period?
Once you enable the cooling period, you’ll lose access to certain trading features, such as USDⓈ-M and COIN-M Futures, Futures Grid, TWAP, and VP across all Binance platforms (website, app, and API).
The default cooling period is one day, but you can also opt for one week, one month or indefinite. All durations are calculated in your local time.
Specific trading rules during the cooling period
Open positions: You can initiate the cooling period if you have existing Futures positions. However, you cannot enable it if you have open orders.
Order placements: While regular new orders are restricted, you can place reduce-only orders during this period.
Strategy orders: You can place strategy orders provided that they are reduce-only orders.
Grid/Bots restrictions: If you haven’t set up a grid, you won’t be able to initiate one during the cooling period. All open orders on USDⓈ-M and COIN-M Grid will be canceled within 48 hours after the activation of the cooling-off period function. If you have not enabled the Continuous Profit Strategy (CPS) option, your current positions will remain active.
TWAP and VP orders: If you're running TWAP or VP, please make sure no open orders exist. If there are any, you'll need to close them first. In addition, you won't be able to place new orders during the cooling period.
Notes:
You can select between various durations for the cooling period, from one day, one week, one month or indefinite. All of which are referenced based on your local time. By default, the one-day option is selected. In this case, the cooling period will start when the feature is enabled until 23:59:59 (local time) on the same day. For the one-week duration, the cooling period will be effective when the feature is enabled until 23:59:59 (local time) on D+7. For the one-month duration, the cooling period will be effective when the feature is enabled until 23:59:59 (local time) on M+1. For an indefinite duration, it will show the end time on the trading page.
Please do not enable this feature when you have open or pending orders.
You can choose to amend the cooling period. However, once the cooling period is enabled, it cannot be lifted. All trading features and confirmation buttons will be disabled until the cooling period ends.
