I think the market is going down, so I’m about to short. This means that once a price hits a certain “limit” that we set, the trade will be executed.
In the above example, we are placing a “Limit” order. The following screen is where you place your trades: Place LONG/SHORTĪfter you figure out your entry, it is time to place the trade. Or even worse, you don’t want to be in the midst of a bear trend placing a “long” (BUY) order. You don’t want to be at the top of a bull trend and enter too late.
Binance futures how to#
Remember, trading Bitcoin is very volatile and you should already know about market trends and how to identify them before even placing a trade. They often provide great levels for you to watch and will often tell you if the trading condition is bullish/bearish/neutral. Obviously, we cannot cover this here but a good suggestion is to follow our analyst’s articles. The next step is to identify a trend so you can hop on board and take advantage of it. If you're new to leveraged trading, you shouldn't be touching anything above 20x leverage, and even that is quite risky. This is still VERY high and I would NEVER suggest you be trading at 100x leverage. Here, I am turning down my leverage to 100x. You should be presented with the following screen: It looks like this:Ĭlick where it says 125X. This can be done in the top left-hand corner of the screen. Now, the next step is to choose your leverage. It should transfer immediately and you will see the balance in your account. In this example, we are transferring $25 from “Spot Wallet” to “Futures Wallet”. This is where you transfer the USDT that you bought when you sold your BTC. Specifically, you are looking for this Ĭlick Transfer, and you will see the following window You can see the yellow “Transfer” button toward the bottom right-hand corner of your screen. You should see something similar to this The next step is to transfer that over to your “Futures” wallet. Now, you should have some USDT sitting in your “Spot Wallet”. Transfer USDT from Spot Wallet To Futures Wallet So, just head over to BTC/USDT and sell some BTC into USDT.
The Futures exchange only accepts orders in USDT, so this step is vital to continue. Once the Bitcoin has been deposited into your account, the next step is to convert that BTC (or any other cryptocurrency) into USDT (USD-Tether). Sell BTC or other cryptocurrencies for USDT Just head over to Binance, go through the signup process and pass the KYC authentication.Īfter opening the account, the next step is to fund your “spot” wallet with Bitcoin (or any other cryptocurrency for that matter) 2. Duh! Opening an account is pretty simple so I won’t be covering any of that here. The first thing you need to do is open an account on Binance. Bitcoin could easily drop by $100 to $9,900, and in that case, you would have lost $100 and your entire position. However, you NEED to remember that leverage is a double-edged sword.
When Bitcoin goes up to $10,100, you can ‘close’ the contract/trade and bank all of the profits from that 1 BTC trade.
So in this case, you would only need $100 to open a trade size of 1 BTC. This means that any funds you offer toward the trade will be amplified by 100 times. In this example, let us say Bitcoin is trading at exactly $10,000 and you have your leverage set to 100X. Binance Futures offers up to 125X leverage, which is pretty damn crazy! Leverage is a pretty tricky thing to understand and is even harder to manage, but let’s quickly take a look at an example. Other traders like the fact that you can trade with leverage. If you think Bitcoin is going to fall, you short it. Shorting basically means selling the asset (without owning it). Some traders like to be able to “short” Bitcoin to hedge their other positions. The reasons are different for each trader. Instead, they are tied to the spot index price and can be terminated by the trader at any given time. This is a specific type of contract that does not have any expiration or settlement date. However, on Binance Futures, they offer something called a perpetual contract. Once the contract time expires, the buyer is obligated to buy the underlying asset (or a seller is obligated to “sell” the asset). What are futures contracts?įutures contracts are trading instruments that see traders buy or sell an asset at a predetermined price which is settled at some point in the future. This guide will help you get up to speed with trading on Binance Futures with an example of trading cryptocurrency futures contracts on the platform. Cryptocurrency margin trading can be daunting, as some of the terms used by exchanges can be hard to understand when you're getting started.
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