Futures trading, or Futures Contracts, is a form of derivatives trading that allows investors to buy and sell assets based on the expected price of that asset in the future. On Binance, you can trade Futures with many popular cryptocurrencies such as Bitcoin, Ethereum, BNB, and more.
The main differences between Spot and Futures trading:
Spot Trading
Payment: Instant transactions, crypto payments.
Leverage level: No leverage or low leverage.
Risk: Lower risk.
Fees: Low transaction fees.
Profitability: Potential profits are lower.
Futures Trading
Settlement: The trade is settled on the contract expiration date, which can be in cryptocurrency or USDT.
Leverage level: High leverage, up to 125x.
Risk: Higher risk.
Fees: Transaction fees, funding fees.
Profitability: Higher potential profits.
Before participating in Futures trading on Binance, you need to note the following:
Understand the nature and risks of Futures trading: Futures trading has higher risk than Spot trading due to the use of high leverage. You can lose more money than your initial capital if the market moves against your wishes.
Have knowledge of technical analysis and risk management: Futures trading requires skills in analyzing price charts and technical indicators to make wise trading decisions. You also need an effective risk management strategy to limit losses.
Start with a small capital: You should start trading Futures with a small capital and gradually increase as you gain experience.
Never invest money you cannot afford to lose: Futures trading can lead to large losses, so you should only invest money you can afford to lose.
Learn carefully about Binance Futures: You should take the time to carefully learn about the features, regulations and risks related to Futures trading on Binance before starting to trade.
See more: https://www.binance.com/vi/futures/home
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