Binance futures means opening high trades for low money. However, it is a process where you can lose all your assets within seconds if you do not take care of it.
The fact that crypto money exchanges offer more transactions to their users every day is more effective in terms of earning. However, some transactions have both high earnings and high risk rates. Futures are one of these types of risky transactions. Binance , one of the largest crypto money exchanges in the world , offers its users the opportunity to open futures transactions. So, how to trade futures, how to open a futures account, what should be considered when trading futures? You will find answers to all these questions in this article.
If you set a short position and the coin also moves down, you win. otherwise, even though you set a short position, you will be at a loss if the coin rises. the higher the leverage, the higher the risk. Thanks to binance futures, it is possible to earn even when bitcoins or altcoins are also falling. (see: turning the crisis into an opportunity )! We have $ 100, leverage 10x bitcoin long, and if btc gains 10% value, we get $ 200. We earn 100 usdt (our money doubles), even if it drops 10%, your money is 0. However, if we were trading without leverage, it would be 100 usdt 110 usdt and we would have earned only 10 usdt. Warnings for not losing money on binance futures
1-) Do not open more than 5-10% of your portfolio. (Especially until you learn)
2-) Never let your position become liquid (zero), always use stop. (use stop according to support-resistances or cut the loss at 5% loss. If you are in profit, move forward by increasing the stop.
3-) You should not make your purchases and sales in one piece. instead buy / sell it piece by piece and lower / raise your average.
4-) You should not do fomo buy or panic sell. You should have a tactic of certain principles andalways stick to this tactic. Do not go beyond your strategy, do not be emotional.
5-) You should stay calm and patient instead of swiftly going into revenge after your lost trade.
6-) Do not make a transaction with more leverage than x10. Otherwise, this business starts to turn into gambling. As you can see, doing leveraged transactions on binance is basically quite simple. but at first stage it can be confused and this is quite normal. Therefore, it would be better for you to start with a low amount and trade with low leverage rates.
In this way, you can observe how transactions are carried out in general without taking too much risk and then you can start trading with high amounts. Another thing you need to know to make leveraged bitcoin transactions is the use of stop loss. When trading with leverage, if you think the coin you will trade will increase, you need to buy / long, if you think it will decrease, you need to do sell / short. If you think the price will increase, you can do a buy / long transaction on the btc / usdt trading pair. If you predict that bitcoin will decrease, you can earn money as btc decreasesby doing sell / short. Always enter orders from the limit section, this is a must to pay less commission! Use the market order part in very sudden large dump pumps only.
How to Fund a Binance Futures Account?
In order to start trading Binance futures, you must first transfer money to this account. You can use your balance in your spot wallet for this. If you do not have a balance in your sports account, you can transfer money to your spot wallet using options such as credit card, debit card or Papara account. To transfer money from your spot wallet to your time deposit account, go to the My Wallet section, click the “Transfer” button and you can transfer by selecting the crypto money you want to transfer by changing the locations as Spot Wallet -> Time Deposit Account.
What is Leveraged Trading?
Leverage means opening high transactions with little money in your hand. For example, with a balance of $ 10, you can increase your leverage up to X125 compared to crypto money . The explanation for this is this; With a $ 10 trade, you can open a $ 1250 trade. But in a small drop, your money is completely lost, and you can profit in the opposite direction. Therefore, keep in mind that you should definitely avoid highly leveraged trades.
To set the leverage, go to the top of the page and manually adjust your leverage by navigating to the current leverage ratio (X20) section. When you later say confirm, your leverage will either rise or fall. The most important point you should pay attention to here; for example your leverage is X125 and you are at a loss. You cannot lower the leverage setting while at loss, but you can do so while on the rise. Therefore, be sure to lower the lever before proceeding.
What is the Indicator Price?
Binance futures are transactions with very high risk, as we have repeatedly stated in our article. For this reason, you must be extremely careful when trading in this area. The indicator price was developed by the system to prevent price manipulations. Indicator price, which is calculated by combining the indicator price, funding data and price data from multiple spot exchanges, is used to calculate Liquidations and unrealized PnL. The most important detail to consider when trading is that the indicator price and the last price may differ from each other.
Using the Binance Futures Page
Most new traders open a deposit account in order to earn more. However, as we mentioned above, we recommend that you do not trade futures if you do not have much experience in fundamental and technical analysis, or at least choose the maximum leverage according to the support and resistance lines as x3, as you can cause high gains as well as melt your entire balance in a short time. You can perform the following transactions in the Binance Futures section;
- Leverage control (default leverage ratio in Binance futures is x20. Make sure to lower this),
- Checking the indicator prices (You should definitely check this screen to avoid liquidation),
- You can follow the expected funding rate,
- You can follow the auto-leverage removal rate of the position here. (You should pay close attention to this section, especially during periods of high volatility),
- You can follow transactions such as 24-hour change and 24-hour volume on this screen,
What is Offer Type, How to Use It?
The types of offers you can use when trading Binance futures are important. More importantly, you should apply the stop process in order not to be liquidated. So, what are the types of offers in Binance futures and how are they used?
Limit : The limit price is the price you set yourself when trading futures. For example, the current value of X coin is $ 0.010 and the support level is $ 0.09, you can place a buy order at this level, or vice versa, when selling, you can place a sell order at a higher price than the current price.
Market : The process of bidding at market price is the process of buying or selling at the current market price. When placing a market bid, you will have to pay transaction fees as a market taker.
Stop-Limit : The stop transaction is perhaps the most important transaction that should be applied in futures. This transaction is a target you set to consider how much damage you can take from a coin you buy at $ 0.010, for example. For example, if you can afford to lose only $ 0.01 on a coin with an instant price of $ 0.10, you should adjust the stop-limit rate accordingly. This means that when the price reaches this level, I sell my coin with a low loss. Likewise, you can do this at a high rate, when you reach the point where you make profit, the sales process is automatically performed.
Stop-Market : Stop market means that the stop limit transaction moves according to the market.
When to Become Liquid?
After giving detailed information about the risks of opening futures, let’s move on to the most important part of the subject. Liquidation means that your money is completely exhausted. This transaction, when you open a new transaction, if you are using a mobile application, you will see the Liquidation price in the lower right corner. This means that if the X coin you purchased reaches that level and you hold your position, your money will be completely melted.
What should be done to avoid liquidation?
In high risk futures, if you act correctly, your earnings will increase and your losses will decrease. However, as we said from the beginning, if you are going to trade with leverage, you should definitely avoid using high leverage. So what should you do to avoid liquidation?
Spot wallet balance is extremely important for futures trading. Do not enter futures with all your balance. For example, open a $ 50 trade and set the leverage to X5. Check your liquidation rate and your indicator price, if they are very close to each other and distortions appear on the charts, transfer some more money from your spot balance to futures and lower your liquidation price.
What Should Be Considered With Binance Futures?
- Do not keep the leverage ratio too high. X5 max
- Consider the Indicator Price and Liquidation price,
- Do not open futures trading unless you have fundamental analysis and technical analysis knowledge,
- Never make transactions with borrowed money or credit,
- Don’t open a trade in the middle of my chart candle,
- Do not act with hearsay information,
- Don’t get caught up in unnecessary FOMO,
- Do not act with your emotions,
- Keep a balance in your spot account against liquidation risk,
- Do not open futures with all your balance.
We recommend that you trade Binance futures by paying attention to the items listed above. However, more importantly, as stated in the third article, if you do not have basic and technical analysis knowledge, do not open futures.