Binance futures allow users to trade futures contracts on different cryptocurrencies with leverage, betting on whether an asset will rise or fall. Here are the key elements to trading futures on Binance:
1. Types of Futures Contracts
USDT-Margined Futures: These contracts are based in USDT, so profits and losses are settled in USDT.
COIN-Margined Futures: These contracts are settled in the native cryptocurrency (like BTC or ETH).
Perpetual vs Quarterly: Perpetual contracts have no expiration date, while quarterly contracts expire at the end of the quarter.
2. Lever
Binance offers leverage ranging from 1x to 125x, depending on the asset. Leverage amplifies potential profits, but also increases risk.
3. Margin and Liquidation Initial Margin: Minimum amount required to open a position. Maintenance Margin: Margin required to keep the position open. If it is not maintained, the position is liquidated.
4. Types of Orders
Limit Orders: Buy or sell at a specific price.
Market Orders: Execute instantly at the best available price.
Stop-Limit / Stop-Market Orders: Open or close a position once a certain price is reached.
Trailing Stop Orders: Allow you to follow the market to protect profits.
5. Funding Rate
Perpetual contracts have a funding rate, which adjusts positions between buyers and sellers, based on the spread between the contract price and the spot price.
6. Risk Management Take-Profit / Stop-Loss: Binance offers tools to set a profit or loss level to automatically manage positions. Capital Management: Use a capital management strategy to avoid too frequent liquidations and minimize losses. Using futures on Binance requires a good understanding of the markets and risk management tools, especially with leverage, which can lead to significant losses.#FutureTarding #FutureBillionaire #Trading💥💪🌟🌼 $BTC $BNB $ETH
