-
Bitcoin $84,240.9863
0.07% - Ethereum
$1,928.5384
-0.01% - Tether USDt
$1.0000
0.00% - XRP
$2.3913
-1.06% - BNB
$607.9687
2.36% - Solana
$135.2029
0.91% - USDC
$1.0002
0.04% - Dogecoin
$0.1760
1.28% - Cardano
$0.7408
-0.22% - TRON
$0.2200
-0.62% - Pi
$1.5076
3.25% - Chainlink
$14.0874
1.68% - UNUS SED LEO
$9.8210
0.09% - Toncoin
$3.4765
18.51% - Stellar
$0.2741
-0.52% - Hedera
$0.1923
-0.06% - Avalanche
$19.4370
3.91% - Shiba Inu
$0.0...01299
1.39% - Sui
$2.3335
-1.48% - Litecoin
$92.4074
0.52% - Polkadot
$4.3198
0.90% - Bitcoin Cash
$338.5411
1.49% - MANTRA
$6.6280
4.51% - Ethena USDe
$0.9998
0.00% - Bitget Token
$4.4752
1.32% - Dai
$1.0000
0.00% - Hyperliquid
$13.6393
-7.17% - Monero
$211.2785
0.46% - Uniswap
$6.2748
2.39% - Aptos
$5.3443
0.11%
how binance future trading works
Binance Future Trading offers advanced options such as leverage, enabling traders to amplify potential profits but also increase their risk exposure.
Nov 03, 2024 at 02:21 am
How Binance Future Trading Works
1. What is Binance Future Trading?
Binance Futures is a type of financial derivative that allows users to speculate on the future price of cryptocurrencies. It offers the potential for higher returns compared to spot trading but also carries higher risks.
2. Key Features:
- Leverage: Traders can use leverage to increase their potential profits but also their losses. Binance offers leverage options of up to 125x.
- Long and Short Positions: Traders can go long (bet that the price will rise) or short (bet that the price will fall).
- Expiration Dates: Contracts have expiration dates, after which they settle in cash. The most common expiration dates are quarterly and perpetual.
- Funding Rate: A fee charged or earned by traders to keep the price of futures contracts aligned with the underlying spot market.
3. How to Start Future Trading:
a. Create a Binance account.
b. Fund your account with cryptocurrency or cash.
c. Access the Futures tab on the Binance platform.
d. Choose the cryptocurrency pair and contract details (e.g., leverage, expiration date).
e. Place your order (long or short).
4. Trading Basics:
a. Buy/Sell Orders: Orders to open long (buy) or short (sell) positions.
b. Limit Orders: Orders placed at a specified price or better.
c. Market Orders: Orders executed immediately at the market price.
d. Stop Orders: Orders placed to trigger a trade when a certain price is reached.
5. Risk Management:
- Leverage Wisely: Use leverage only if you understand the risks involved.
- Set Stop-Loss Orders: To limit potential losses.
- Monitor Your Positions Regularly: Track your gains and losses and adjust your strategy as needed.
- Know Your Risk Tolerance: Trade within your financial means and avoid risky positions.
6. Advantages of Future Trading:
- Higher Potential Returns: Leverage magnifies both profits and losses.
- Hedging: Protect against potential losses in spot trading.
- Diversification: Add complexity to your cryptocurrency portfolio.
- Scalability: Trade with small or large amounts of cryptocurrency.
7. Disadvantages of Future Trading:
- Higher Risk: Leverage can amplify losses.
- Complex Nature: Futures trading requires a more advanced understanding of financial markets.
- Liquidation Risk: If the market moves against your position, you may be forced to sell your holdings at a loss.
- Fees: Trading fees can erode your profits.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- The cryptocurrency market has been on a rollercoaster ride this past week
- 2025-03-16 14:45:55
- US creates 'Strategic Bitcoin Reserve' in latest proof of President Trump's support for the cryptocurrency sector
- 2025-03-16 14:45:55
- TRON Emerges as the Highest Revenue-Generating Blockchain, Outperforming Ethereum and Bitcoin
- 2025-03-16 14:45:55
- Qubetics (QUBE) is one of the Best Cryptos to Watch in 2025
- 2025-03-16 14:45:55
- Despite Ongoing Legal Battles, Ripple's XRP Token Continues to Garner Increasing Attention
- 2025-03-16 14:45:55
- 1933 George V penny could be worth a hefty sum
- 2025-03-16 14:45:55
Related knowledge
What are the reasons for KuCoin KYC certification failure?
Mar 16,2025 at 02:55pm
Key Points:KYC failures on KuCoin are often due to issues with the information provided during the verification process. Inaccurate, incomplete, or inconsistent data is the most common culprit.Image quality plays a crucial role. Blurred, low-resolution, or improperly lit photos are frequently rejected.Technical glitches and platform errors, while less c...
What is the appeal process for a Coinbase account that was mistakenly blocked?
Mar 16,2025 at 12:40pm
Key Points:Coinbase's account blocking process is automated, often triggered by suspicious activity flagged by their security systems.Appealing a blocked Coinbase account requires careful documentation and a clear explanation of the situation.The appeal process involves submitting a support ticket through Coinbase's help center, providing specific infor...
What are the reasons why Coinbase cannot buy cryptocurrency?
Mar 16,2025 at 12:06pm
Key Points:Coinbase's inability to purchase cryptocurrency can stem from various user-side issues, including account restrictions, payment method problems, and insufficient funds.Technical glitches on Coinbase's platform, regional restrictions, and regulatory compliance measures can also prevent users from buying crypto.Understanding the specific reason...
What should I do if I cannot bind a bank card to my Coinbase account?
Mar 16,2025 at 12:55pm
Key Points:Coinbase's bank card binding process involves several steps and may be impacted by various factors.Troubleshooting involves verifying card details, checking Coinbase's supported banks and regions, and considering alternative payment methods.Contacting Coinbase support directly is crucial if initial troubleshooting fails.Understanding the reas...
What is the possible reason that the Binance wealth management page cannot display income data?
Mar 16,2025 at 01:35pm
Key Points:Network congestion on the Binance blockchain can delay the reflection of income data.Technical glitches and maintenance on the Binance platform may temporarily prevent data display.Incorrect account settings or insufficient permissions could restrict access to income information.Issues with the user's device or internet connection can interfe...
How do domestic users trade OTC on OKX?
Mar 15,2025 at 05:21am
Key Points:OKX's OTC (Over-the-Counter) trading service facilitates peer-to-peer cryptocurrency transactions, bypassing traditional exchanges.Domestic users face challenges due to regulatory restrictions in various countries. OKX's OTC service might not be fully accessible or legal depending on your specific location.The process involves finding a selle...
What are the reasons for KuCoin KYC certification failure?
Mar 16,2025 at 02:55pm
Key Points:KYC failures on KuCoin are often due to issues with the information provided during the verification process. Inaccurate, incomplete, or inconsistent data is the most common culprit.Image quality plays a crucial role. Blurred, low-resolution, or improperly lit photos are frequently rejected.Technical glitches and platform errors, while less c...
What is the appeal process for a Coinbase account that was mistakenly blocked?
Mar 16,2025 at 12:40pm
Key Points:Coinbase's account blocking process is automated, often triggered by suspicious activity flagged by their security systems.Appealing a blocked Coinbase account requires careful documentation and a clear explanation of the situation.The appeal process involves submitting a support ticket through Coinbase's help center, providing specific infor...
What are the reasons why Coinbase cannot buy cryptocurrency?
Mar 16,2025 at 12:06pm
Key Points:Coinbase's inability to purchase cryptocurrency can stem from various user-side issues, including account restrictions, payment method problems, and insufficient funds.Technical glitches on Coinbase's platform, regional restrictions, and regulatory compliance measures can also prevent users from buying crypto.Understanding the specific reason...
What should I do if I cannot bind a bank card to my Coinbase account?
Mar 16,2025 at 12:55pm
Key Points:Coinbase's bank card binding process involves several steps and may be impacted by various factors.Troubleshooting involves verifying card details, checking Coinbase's supported banks and regions, and considering alternative payment methods.Contacting Coinbase support directly is crucial if initial troubleshooting fails.Understanding the reas...
What is the possible reason that the Binance wealth management page cannot display income data?
Mar 16,2025 at 01:35pm
Key Points:Network congestion on the Binance blockchain can delay the reflection of income data.Technical glitches and maintenance on the Binance platform may temporarily prevent data display.Incorrect account settings or insufficient permissions could restrict access to income information.Issues with the user's device or internet connection can interfe...
How do domestic users trade OTC on OKX?
Mar 15,2025 at 05:21am
Key Points:OKX's OTC (Over-the-Counter) trading service facilitates peer-to-peer cryptocurrency transactions, bypassing traditional exchanges.Domestic users face challenges due to regulatory restrictions in various countries. OKX's OTC service might not be fully accessible or legal depending on your specific location.The process involves finding a selle...
See all articles
