The current heroes aren’t astronauts, politicians, or even film stars. Futures players can be described as heroes of the present without exaggeration. They can take down any commercial bank in a couple of days, and become millionaires in a single snap of their fingers.
It’s sufficient to deposit money or in the terminology of trader margin. In most cases, it’s not more than 10 percent of the contract value. It is this amount that you’ll lose if all goes wrong. In the past, futures contracts were signed for a real product, like wheat, oil, or gold Now, they are available in cryptocurrency-based exchanges. In this article, we’ll explain what Binance futures contracts are traded. It is among the leading platforms of the blockchain industry, executing hundreds of billions of US dollars worth of transactions each day. In the last few months, the exchange launched an affiliate of Binance Futures. Instructions for using the service are now available to you.
What are Binance Futures and Trading Basics
The term “futures contract” is a pre-contract to purchase or sell any financial instrument on the market for exchange. Naturally, trading on Binance futures is a contract to purchase a specific cryptocurrency at a specific date at a set price.
Futures vs. spot market
What is the main difference between the Futures Market and a normal (spot) market? Futures transactions are not performed immediately. The counterparty agrees that at a specific date you will purchase (or sell) the same or similar quantity of the digital coin, and you will set the price prior to when you buy it. For example, you could buy 10 bitcoins over the course of a month at $12,000 for each coin.
Futures contracts may be dated with a specific expiry date, for example, one month or a quarter. However, there are also perpetual options that let you keep your position open until you want to. The quarterly Binance Futures was added in June 2020, though it initially offered perpetual contracts that were based on the value index used as the base. It is calculated using the cost of the currency on the top platforms in relation to the volume of transactions that are carried out on each of them. The cost of a per-year cryptocurrency derivative isn’t much different from the actual cost of a currency on the market.
Alongside the margin you pay to start a new position in the first place, you must have an amount of money in your principal balance. This is known as the maintenance margin, and without it, your position is closed. Margin is contingent upon the amount of your position. If a futures contract has been liquidated, the commission will be due. If there’s more money on the deposit than required to pay debts, the remaining balance will be returned to you at a later date. On Binance verification isn’t required for trading derivatives, which is a distinct advantage over Bitmex.
If the system is unable to respond in time to the decline in the exchange rate, and then close the position that is not profitable, the balance in the account of the unfortunate trader will not be sufficient to cover all the debts. In this scenario, an insurance fund has been set up on Binance. It is funded with liquidation fees and guarantees that profits are distributed in time to traders who are successful in the futures market. If the insurance fund, for whatever reason fails to meet the demands of the demand, it will trigger auto-deleveraging, which is compulsory liquidation by the other counterparty. However, the process to trade futures through binance is constructed to be able to avoid the occurrence of such precedents. If this does occur, the trader affected will be informed promptly.
So long as the contract is in place both the participant on the longer trade (the purchaser of the options) and the other participant who trades in the shorter trade (the sellers of the futures) often pay each other. This is known as funding. The person who is losing must pay. The payment is made up of two components that are the rate of funding and the premium. The rate is set in perpetuity which is calculated as a hundredth of the amount in the contract. The rate is determined by how much difference there is between the actual currency rate and that which is stated in the contract.
How do you create a futures account?
The first step is to have to sign up for the spot exchange. Instructions on signing up on Binance can be found on our website.
We recommend paying close attention to your PC application. The desktop client that trades using the Binance platform does not just provide an enhanced level of security for trading in crypto and convenience, but it also lets you conduct transactions from your laptop. It is compatible with Windows, macOS, Linux deb, and Linux RPM. Windows version is available as two variants:
- for Windows 10 platform.
- For older versions of Windows.
The other option is ideal for people who, for some reason, are using seven or alternative editions of Windows. For instance, the possibility that a dozen computers are not running on the original hardware. However, investing in the market using an old notebook or desktop computer can be extremely dangerous. It is possible for equipment to fail at any moment, and result in a disastrous amount and lose potential profits.
Let’s look at the major advantages:
- A variety of exchange rates and prompt updating users on changes to quotes.
- Safety and reliability of storage facilities for assets. Deposits of customers are protected through a separate Security Fund (SAFU).
- The availability of all exchange services is currently active. You can leverage your account, trade options, and futures by logging into a P2P platform.
- Work in a hurry. Just one click for switching to Pro or Lite modes.
- The possibility of automated repetition of the same operation. Indicate the amount of transaction as well as the period of time to purchase a specific cryptocurrency using the exchange, without the need for a personal visit. Binance’s Binance desktop client does everything.
- Support service that is responsive and professional available 24 hours a day, 7 days a week.
In contrast to mobile applications and the interface for desktop, clients are similar to the one you’re used to within a browser. The latest version of the trading program for PC has improved performance and speed of operation. The application is suitable for novice and experienced traders. The user has access to all areas on Binance. Binance platform and need not have to worry about finding the wrong website or being able to buy or trade their virtual currency on time. To avoid issues, do not download software from a source that is not trustworthy. Download link: https://www.binance.com/ru/download.
As we’ve already said It is not required to prove your identity. in this sense it is superior to BitMEX, and a number of other platforms. Be sure to turn on additional security features for your account.
- Click on the icon for your profile.
- Visit ” Wallet ” by clicking on the email address that appears in the menu dropdown.
- Select ” Futures Wallet “.
- Select on the “Open Now Click the Open Now.
- The futures account has been opened and you are able to transfer funds to it from the spot account and begin trading. This feature is accessible within the wallet, under it’s called the “ Deposit ” button.
Interface for trading
Externally Binance Futures resembles the spot market. It has similar charts as well as order book and order form. However, the toolbar is markedly different. variations.
On the left side is a trader’s pair when you hover your mouse over it, an inventory of available contracts is displayed. After that, you can click on the button for changing the margin mode, marking index as well as the current rate for financing, and a timer that counts down the days until the next time you can clear. The numbers next on the top of the page display the fluctuation in the rate and trading volume for the last day.
The default view offers:
- Charts of depth;
- Glass for exchange;
- Open orders and positions.
Adjustments to the interface are available from the dropdown menu in the ” USDT-M Futures ” column. Its default leverage of 20x. It is possible to increase it by up to 125x by clicking the icon that corresponds to it and sliding the slider in the window that pops up.
Order types and the order in which they are placed for usage
There are five kinds of orders via the Binance Future futures trading platform:
- Limit – a buy or sell order, executed at the price you decide to set. Create a new one and then wait for the counter offers to be made.
- Market Market Order is immediately executed with the most favorable terms at the moment.
- A stop-limit order is composed of two elements two parts: a limit price as well as the stop price. Stop price refers to the value of the cryptocurrency you have chosen at which point the system will activate the order. However, the most desirable price will be that of the “limit price. This means that the stop signal signals to enter an order into the book. Once the market is at that price limit it is time to sell or buy.
- Stop-market is the term used to describe the change of a limit order to a market order once the cop-price has been reached.
- trailing stop The order is activated when the price of the coin you have selected on the market exceeds its maximal (or minimum) value (or (+/- 1 %).
Variations between the price labeled and the final price
The final price is the prior executed order, which is recorded in the order history.
The price for labeling is calculated from market data. The value of the labeling price determines the unrealized PnL as well as the date of liquidation of contracts.
The phrase PnL refers to the total of unrealized and realized gains and losses. In the event that the position is not open, and will not be realigned and can change based on market movements. And the more it sways toward minus, the quicker the liquidation process will begin.
The last price, as well as the marked price, are utilized as triggers in stop orders.
How to Calculate Binance Futures Volume
A futures contract is characterized by three fundamental conditions:
- A security deposit is an amount that is paid at the time of purchasing the contract.
- tick (price stage) The amount that is the minimal change that is allowed in the value of the contract.
- The price of a price step refers to the number of funds that will be debited (or credits) in accordance with the direction on the markets.
Calculations are done by exchanges, and you must monitor the margin balance and distribute it correctly among open positions. You can set your own limit and then open up two different positions (short and lengthy) simultaneously to protect yourself from risk.
Trading risks Tips for traders
Do not put all of your money into one trade and don’t limit the leverage to the highest level. The greater you leverage the greater chance of closing the contract during extreme market volatility since both the entry price and liquidation marker will be extremely close. Carefully study the mechanisms for trading contracts on futures.
Fees for Binance Futures
What is the price you should pay for the service? Futures commissions at Binance are not that different from the spot market and are based on the status of the client’s VIP.
The leverage of the market for futures is higher than that of the market for spot, the amount of trading per VIP level is a lot greater.
It is highly unlikely that any platform could compete with Binance with regard to the speed of development and the development of new features. The ability to share information on social networks through binance, as well as participation in the referral program, rating Futures, the P2P platform, and the company’s own mining pools is not all the features that clients receive.
The Binance project encompasses an ecosystem comprising a think tank as well as a platform for issuing tokens as well as a mining pool as well as a wallet and trading platforms from different types. It is a comfortable place to work here for novice traders and those with experience. Join us!