Binance Future is a financial market activity where users speculate on the future prices of various cryptocurrencies.
#TipsTradingFutures How to Trade Futures on Binance:
1. Register a Binance account and Identity Verification or KYC.
2. Make a deposit or if there are already funds in Spot, they must be transferred to the Future wallet.
3. Select the Binance Future Account Type, either Stablecoin Denomination (USD-S) or Crypto Denomination (Coin-M).
4. Select Leverage Level.
Binance allows users to trade with up to 125x leverage on certain pairs (example BTC/USDT).
Using high leverage carries high risks so it is not recommended for inexperienced users. Make sure to never invest more than you can afford to lose. For beginners, it is recommended to use Leverage below 5x.
5. Select Margin Position Mode
There are 2 options, namely:
* Isolated Margin with this mode, the margin for each trade is limited to what is allocated, meaning that if the margin ratio reaches 100% then the position will be liquidated but only at the traded amount.
* Cross Margin which means all cross positions have the same cross asset margin balance. This means that in the event of a liquidation, your entire futures account will be liquidated, including margin for other positions.
6. Open a Long or Short Position.
When considering a Long position, you anticipate an increase in the price of the crypto. Basically, you buy with the hope of selling at a higher price to make a profit
When you predict that Crypto prices will fall, you can take Short action.
7. Set Stop-Limit.
This is usually used as a Stop Loss(SL) or Take Profit (TP) mechanism.
8. Closing Position.
Once your position is open, you will be able to monitor its status. If you want to close a position then there will be an option that market closing is instant, and you close at the best price available. In contrast, limit closing allows you to determine the price at which you want to close the position.