How to Use the Binance Futures Leaderboard to Get Trading Insights?
Disclaimer: Digital asset prices can be volatile. Not financial advice. Do your own research. See full terms here and our risk warning here and below. Binance Futures products are restricted in certain countries and to certain users. This communication is not intended for users/countries to which restrictions apply.
Main Takeaways
The Binance Futures Leaderboard is a strategic tool for investors to discover and follow traders with a proven track record on Binance Futures.Â
It allows traders access to trading strategies and insights that deliver good results to top traders and consistent trading performance.
The Leaderboard enables traders to tap into the strategies of the top performers and formulate their own.
The fluctuating nature of the cryptocurrency market makes finding the right trading strategy a daunting task. Making regular profits from crypto markets without a clear strategy or insight, thus, becomes extremely difficult. Binance Futures Leaderboard provides traders with the possibility of following and copying the strategy of sophisticated traders with the best performance on the platform.
But how exactly can you leverage this tool to sharpen your trading edge?
Binance Futures Leaderboard: Overview
Binance Futures Leaderboard is a strategic tool for investors to discover and follow traders with a proven track record of success on the Binance Futures trading platform. It allows them access to the trading strategies and insights that give these traders good results and consistent trading performance.Â
Through the Leaderboard, individuals can track top-performing traders across various crypto derivatives contracts â options and futures. The page displays their past performances and share positions, which other traders can use for more informed decision-making.
Top ranking
Want to filter through the most successful traders? Here's where you find top ROI traders, top PNL traders, and the most popular traders on different derivatives products.
This section displays a generalized overview of the top and featured Coin-Margined and USDâ-Margined futures and options traders, popular grid trading bots. It can be further filtered by top ROI traders, top PNL traders, and the most popular traders on different derivatives products to narrow down the hunt.
Futures and options
Those two Leaderboard sections follow the same logic for both futures and options contracts.
The respective sections rank traders based on a set of parameters, such as the type, time, and sort by, that allow individuals to customize the leaderboard view. Or traders can simply search for the trader they intend to follow using their nickname. The search for a top trader can further be narrowed down by enabling âonly show sharing positionsâ to display only the traders that allow others to view their open positions. âpositions in progressâ or âlast trade: [date]â is displayed in the profile overview of those sharing their positions.Â
By type
Binance Leaderboard ranks traders based on both Coin-Margined and USDâ-Margined Futures products. Coin-Margined contracts are denominated and settled in the underlying cryptocurrency, such as BTC and ETH. This eliminates the need for contract holders to hold stablecoins as collateral. They are also characterized by a contract multiplier, which is basically the contractâs value, wherein every BTC contract represents 100 USD and each ETH represents 10 USD. Thus, as the price of the underlying asset increases, so does the value of the collateral. The contractâs expiration date is either perpetual, quarterly, or bi-quarterly.
On the other hand, USDâ-Margined futures contracts are often denominated and settled in USD-pegged stablecoins, specifically USDT and USDC. Every contract has a defined base asset quantity delivered for a single contract, called a contract unit. This means that a BTC/USDT contract represents one unit of the base asset. USDâ-Margined Futures contracts expiration dates are either perpetual or quarterly. The same settlement currency can be used across various contracts, such as ETH, BCH, XRP, and so on, which translates to flexibility.
Filtering the leaderboard using USDâ-Margined and Coin-Margined futures contracts allows traders to view top traders holding positions in either one of those contract types.
Top PNL traders
Who's really turning a profit? The Leaderboard's top PNL traders give you the rundown.
Check out the daily, weekly, monthly, or total PNL metrics with this feature.
Profit and Loss, or PNL, is the calculation of the profits or losses made from a futures position. This metric is used to evaluate a traderâs performance within a specific timeframe in the futures market. PNL is either a floating loss or profit until the position is closed. This means that the traderâs position may have a floating profit and end up with a profit when itâs closed, or vice versa. PNL is calculated as follows:
PNL = Ending Wallet Balance (Current Time) - Beginning Wallet Balance (00:00 on the Start Date) - Net Inflow
PNL % = PNL during the Selected Time Frame / (Beginning Wallet Balance + Inflow)
Cumulative PNL = Cumulative PNL / [Day 1 Asset + Average (Cumulative Net Transfer from Day 1 to N)]
In the Leaderboard, PNL is calculated in USD for USD-Margined contracts and in BTC for USDâ-Margined contracts. The top PNL traders can be viewed based on their daily, weekly, monthly, or total PNL. Typically, a higher PNL indicates the profitability of an investment. The top PNL traders are listed in descending order regardless of their ROI value.
Top ROI traders
Wondering whose strategies are yielding the highest returns? The top ROI section is where you find your answers.Return on Investment or ROI represents a ratio of percentage value reflecting a certain tradeâs efficiency or profitability. It evaluates the return on a trade based on its purchasing cost. Hence, it is calculated by finding the quotient of the net profit over the net cost and multiplying it by 100% to find the percentage value.
ROI = (Current Value - Total Cost) / Total Cost
ROI = (Net Profit / Net Cost) * 100
Binance Leaderboard determines the top ROI traders by taking into consideration the period for the ROI, such as daily, weekly, monthly, or total ROI. This ensures that there is efficiency in calculating the profitability of a position. Essentially, a high ROI value reflects the profitability of a position. A negative ROI indicates that the total acquisition cost is higher than the return. Thus, the top ROI traders are listed in descending order regardless of their PNL.
The top traders can also be sorted by followers, where the traders are ranked from the trader with the highest number of followers to the lowest.
Trading bots
This parameter takes you to the trading bots landing page, which allows you to create your trading bots and to replicate trading bots strategies displayed on the Bot Marketplace. Trading bots are automation tools that aid traders in buying and selling cryptocurrencies based on predefined parameters. It enables traders to identify and replicate trending strategies on Binance and execute trades at the right time for a desired price.Â
Bot list
The bot list features a spot grid, futures grid, rebalancing bot, spot algo orders, auto-invest, futures TWAP, futures VP, and spot DCA.Â
Spot Grid allows traders to automatically buy low and sell high 24/7 in volatile markets and within preset ranges.Â
Futures Grid amplifies a traderâs purchasing power using USD-Margined and COIN-Margined contracts as well as short orders.
Rebalancing Bot supports an investment portfolio, enabling traders to enter long-term futures positions while diversifying investment risks.
Spot Algo Orders improves large order executions in smaller blocks with intelligent algo orders.
Auto Invest allows traders to create their own futures trading plans and accumulate crypto from recurring investments.
Futures TWAP divides large orders into small orders to optimize execution price.
Futures VP also divides large orders into smaller orders to get better execution prices. However, it is targeted towards a specific market volume ratio or percentage.
Spot DCA allows the automatic placement of buy/sell orders, which facilitates a favourable closing position.
Bot marketplace
The bot marketplace is categorised into spot grid and futures grid trading bots, which can be further filtered based on market, direction, runtime, ROI, and zone. It can be sorted by the top ROI, top PNL, or top copied. The zone menu allows users to filter strategies by token categories (e.g. AI, later-1, layer-2). the runtime can be as low as less than 1 day and or as high as possible, 30d+.
Hot coin leaderboard
Hot coin leaderboard features the trending market top 10 and volatility top 10 for both the spot grid and futures grid. The trending market top 10 displays the top 10 trending asset pairs, which are ranked based on the number of active strategies. Their ranking runs from the asset pair with the highest number of running strategies to that with the lowest. If more than one asset pair has the same number of running strategies, the runtime is used to break the tie. If the runtime is also equal, the ranking is randomly determined.
Volatility top 10, on the other hand, showcases the top 10 trending asset pairs according to their volatility, a metric often used in grid trading strategies. The asset pair with the highest volatility typically ranks higher. If two assets show the same volatility level, the 24-hour change breaks the tie. The ranking is randomly determined if both the 24-hour change and the volatility levels are equal.
Copy Trading
Copy trading is a trading strategy wherein a trader copies the portfolio of an experienced trader in real time. It allows them to determine their investment amount, and the system automatically copies the trades from the lead trader the individual follows.
The copy trading page allows users to copy or mock copy the trades of the experts they follow. Mock copy is a trading technique that involves copy trading with virtual funds. Top traders can be filtered using the trading period (7D, 30D, 90D), PnL, ROI, MDD (Maximum Drawdown), AUM (assets under management), Copy Traders, Copy Trader PnL, and Sharpe Ratio. Users can also choose to âhide full portfoliosâ to hide portfolios with the maximum number of copy traders and mock copy traders. They can also select to view only traders that offer trading APIs.
Closing Thoughts
The Binance Futures Leaderboard is a powerful tool for new traders to learn and copy the strategies of the best performers on the platform.Â
However, the past performance of the top traders does not necessarily guarantee that the succeeding trades will be successful. Hence, it is essential to practise proper risk management and do due diligence before following and copying a trader.
Further Reading
Risk Warning:
Options Trading
The risk in options trading is that loss of your entire investment within a relatively short period of time is comparatively high. It is possible that your loss and the resulting payment obligation may be higher than the amount you had invested. Therefore, you are advised to read carefully and understand the Options Service Agreement. You may experience a significant loss that can quickly exceed your initial investment. If you create contingent orders, such as a âstop lossâ or âstop limitâ order, such orders will not necessarily limit your losses to the intended amount, for instance, market conditions may make such limits unviable. Furthermore, as âleverageâ is allowed in trading, please note that it can work both for you and against you. Exploiting such âleverageâ may lead to larger losses or higher profits.
No Representation
This content is presented to you on an "as is" basis for general information and educational purposes only, without representation or warranty of any kind. It is not intended or should not be construed as financial or investment advice, nor is it to recommend or intend to recommend the purchase or sale of any specific product(s) or service(s).
Hypothetical Performance Results
Digital asset prices can be volatile. The value of your investment may go down or up, and you may not get back the amount invested. Any results posted herein are intended as examples only to provide you with a reference of what potentially could have made or lost trading with the technical indicators and tools, but are in no way a reflection of what you could have made or lost in the same situation. Therefore, you should not rely on the results as a representation of what your returns or losses would have been utilizing such technical indicators. There are numerous other factors related to the market in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance. In no way is results or performance guaranteed by Binance.
ResponsibilitiesÂ
You are solely responsible for your investment decisions, and Binance is not liable for any losses or damages you may incur. The risk warning described herein is not exhaustive, therefore you should carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior making any investment. For more information, see our Terms of Use and Risk Warning.
The products and services referred to herein may be restricted in certain jurisdictions or regions or to certain users in accordance with applicable legal and regulatory requirements. You are solely responsible for informing yourself about and observing any restrictions and/or requirements imposed with respect to the access to and use of any products and services offered by or available through Binance in each country or region from which they are accessed by you or on your behalf. Binance reserves the right to change, modify or impose additional restrictions with respect to the access to and use of any products and/or services offered from time to time in its sole discretion at any time without notification.