Binance Futures is one of the most popular futures crypto our site platforms that has leverage of 20x (previously it was 100x). Trade is an art and every crypto trader starts their journey in the field of crypto with spot trading. If they can develop their skills as a trader and experience, they’ll be able maximize their profits and minimize risk with innovative strategies. While spot trading is good for the long term Futures trading is employed to short sell an asset or to increase the leverage of an asset.
Futures are a type of derivative trading and these are the regulated contracts between two people that involve the agreement to buy or sell an underlying asset. Futures Trading allows traders to hedge against the volatility of markets and make sure that they buy or sell an asset for certain prices in the near future. If the price fluctuates opposite of the direction, investors could end up paying a higher price than the market, or selling the asset for losing money.
Future contracts can be used to gain profit from fluctuations in prices and increase exposure to crypto without having to purchase or sell.
Why would one consider Binance Futures?
The spot market lets traders to buy and sell the crypto deal assets anytime however, with certain limitations. In this type of trading traders are required to keep assets for a certain amount of time before they can take profits.
Futures trading lets traders diversify portfolios, increase exposure to cryptocurrencies from different sources and achieve this without owning the asset that is used to generate it. Leveraging the crypto derivative market will allow them to have better capital efficiency. Short-selling also gives investors the opportunity to earn profits, even if the value of an asset decreases.
Binance Futures is the most liquid derivates exchange in the crypto market. It offers customers with the top opportunities to reduce unnecessary risk. Leverage trade at Binance Futures platform allows the traders to open positions which exceed their crypto assets capital. If you’re able to create a position that is 50 times larger than their capital you’ll have 50x to allow you to make trades.
Access a range of features
Binance Futures trading allows its traders to use a broad array of features, such as advanced order types, Binance grid trading, trading bots, trading and more. which further enhance the trading experience. It is beneficial to use advanced orders. If a trader places an order for a limit, then a take-profit and stop-loss may be put in the same order. A trader may place a primary and secondary order at the same time, with the primary being one that is a limit order, with the second is a stop-loss or take-profit order.
The amazing features and technology allows traders to design their strategies in advance of time. This helps to ensure consistency while taking care of the risks in a timely manner.
Before trading futures, you are required to establish a Binance Futures account while using the Binance app or via the Binance website. You can sign up here by entering your email ID as well as accepting the terms and conditions, and following instructions. After registering, you are qualified for margin trading or leveraged trading Binance Futures.
Grid Trading and Binance Trading Bots
Grid trading is an excellent feature of Binance that allows traders to streamline the crypto trading process that is used to trade futures contracts. This allows you to put in as many buy or sell orders as you want and make profits within the set price range. Grid trading occurs when orders are placed both above and below the specified price which creates a grid of transactions at price increases and decreases.
It’s worth making use of a third party trading platform such as TrailingCrypto or CryptoHopper in case you’re a novice trader who doesn’t have much experience in grid trading. These platforms allow trading to be more simple. The grid-based trading bot that is available is available on the Futures market is more suitable for those who prefer perpetual futures trading.
Binance trading robots are utilized to automate the process if you’re using a third party platform. The futures trading with bots on Binance lets traders divide their funds into smaller parts/grids and purchase the asset at regular intervals. It is also possible to create an individual strategy by connecting your terminal account from a third party to Binance Futures.