What are Binance Futures? How to trade Binance Futures futures

binance futures là gì

What are Binance Futures? How to join Binance Futures? Goctienao will guide you in detail about this platform.

What are Binance Futures?

Binance Futures is a futures contract issuance platform that allows you to place orders speculatively on the future price of a coin, without owning that cryptocurrency, for a certain period of time.

Eg: Contract duration is 1 month, you think Bitcoin price will increase, you place a buy order (Buy/Long). At the expiration of the time limit, if Bitcoin price If the price increases, you will receive that profit difference, and in the case of a decrease in the price, you will be deducted an equivalent amount from your account.

Trading fees on Binance Futures?

Here is a table of transaction fees on Binance Futures, for your reference:

  • Maker: The person who placed the order
  • Taker: Order matching person

Binance Futures trading fees

Lever

Binance Futures allows 20X leverage for the first order, from the second order it will be 40X. That is, the rate of deposit / order value is 5% initially, then 2.5%.

That is, you deposit 1 ETH, you will be able to open positions worth up to 20 ETH. In it, these 20 ETH is not the real 20 ETH, but just the nominal value on the derivative platform. You will get profit or loss. The leverage ratio will decrease if the nominal value of the position increases according to the following table:

binance futures
binance futures

Specific examples:

When opening a position you need to pay an initial amount and amount to maintain the position. The initial amount is called Initial Margin. Maintenance amount is Maintenance Margin.

Let’s say BTC price is 1000 USDT and you have 4000 USDT in collateral and choose leverage 125x

Example 1: You open a position of 1 BTC, nominal value 1000 USDT

  • Initial Margin: 1000 * 0.8% = 8 USDT
  • Maintenance Margin:1000 * 0.4% = 4 USDT
  • Collateral: 4000 – 4 = 3996 USDT
  • Liquidation price: 1000 – 3996/1 <0; Your account will never be liquidated

Example 2: Brothers open 4 BTC, nominal value 4000 USDT

  • Initial Margin: 4000 * 0.8% = 32 USDT
  • Maintenance Margin:4000 * 0.4% = 16 USDT
  • Collateral: 40000 – 16= 3984 USDT
  • Liquidation price: 1000 – 3984/4 = 4
  • Bankruptcy price: 1000 – 4000/4 = 0

Example 3: Brothers open 6 BTC, nominal value 6000 USDT

With 125x leverage, the nominal value does not exceed 5000 USDT.

So you can only open positions with lower leverage.

Initial Margin

Initial Margin is the amount you need to have when you open a wallet. For example, when the leverage is 125x. At this point, the real amount you have to pay to open the position is 1/125 of the value of the contract.

Maintenance Margin

Maintenance Margin is the amount you must maintain in your margin account after opening a position. To avoid auto-liquidation, you should actively liquidate before the collateral falls below the Maintenance Margin.

Funding rate

Margin interest rate on Binance Futures is 0.01% every 8 hours, or 0.03%/day.
Eg:

User A opens an order to Buy 1 BTC, Person B chooses Person A’s order. Every 8 hours, Person A must pay Person B 1*0.01% = 0.0001 BTC.

If you cancel the contract early, you will bear the fee: 0.5% x Transaction fee.

Note: Funding Rate will never exceed 0.05%.

Support Coins

Present Binance Futures just opened futures trading for 3 coins: Bitcoin, Bitcoin Cash and Ethereum.

Binance Futures Review

You can use the app on both iOS and Android!

Advantages

  • High leverage (x125)
  • High liquidity, fast transaction
  • Easy-to-see interface
  • Trade with a registered account on Binance exchange

Defect

  • Difficult to use, I also find this a bit difficult to use
  • Only support 2 pairs: BTC/USDT and ETH/USDT

Instructions for trading futures on Binance Futures

Step 1: Access to Binance Futures

You must have a Binance account first before you can open a Futures account
Link to register for a Binance exchange account: https://www.binance.com/vn/register . You register an account under this link will be 20% off transaction fees when trading on the floor!

After registration, in the exchange section, choose Futures.

Next item Referal Code, you fill in: 40173834 (insert this code bro 10% off Futures trading feeshome)

Binance Futures

Remember to enter the ref code: 40173834 To get 10% off transaction fees guys and to support GTA team!

Then you press OPEN NOW.

Step 2: Place trading orders

The Binance Futures interface includes:

binance futures interface

first/ Information and indicators

2/ Trading Graph

3/ Your transaction history

4/ Order List

5/ Trading history on the exchange

6/ Ordering frame

Step 3: Transfer money to the floor as a deposit

First, you must have money as a deposit. Brother transfer via wallet at Futures exchange is fine.

Binance Futures
Binance Futures

You enter the amount of coins (any coin is fine) needed transfer over and press Confirm Please!

Binance Futures
Binance Futures

To switch from Binance Futures back to your exchange wallet, just click the circle button in the middle. Convert From-To to From Futures Wallet – To Exchange Wallet. Next, enter the amount to be transferred in the section “Amount” then press Confirm Transfer.

Step 4: Trade Bitcoin Futures

Binance Futures
Binance Futures

Ordering Types

Limit command

Most commonly used. Only match orders with the price and volume you enter.

Eg: You want to buy 1 BTC for $ 7000, please enter the price 7000$ into the Oh Price and quantity 1 in the box: Order Qty.

Done, press Buy/Long. Similar to Sell

limit order
limit order

Market order

You will buy BTC at the current best price on the exchange. (Use this for convenience)

market command
market command

You just need to enter the amount of BTC you need to buy in the box: Order QTy. Then press Buy/Long is OK.

Stop – Limit order

When the Bitcoin price reaches the limit price, the order will be triggered.

Eg: BTC price 5000 USDT. You place a Sell/Short Stop-Limit order. The Stop Price is 5100 USDT. Price capped at 5150 USDT. . When the Bitcoin price goes up to 5100 USDT there will be a Sell/Short 1 Bitcoin order at this 5150 USDT.

stop limit order
stop limit order

Stop Market Orders

The order will be activated at a certain price specified by you but will be executed at the best price in the available market.

For example: BTC price 5000 USDT. You place an order Sell/Short Stop-Market. Stop-Price is 5100 USDTILLION. Amount 1 BTC. When the market price reaches 5100 then a Market order will be triggered

stop market order
stop market order
  • Take-Profit-Limit: The order will be triggered when the price reaches the Trigger price level specified by you and will only be executed at the price you specify.
  • Take-Profit-Market: The order will be triggered when the price reaches the Trigger price level specified by you and will be automatically executed at the best price in the available market.

A few other concepts:

  • Post-Only: The order will be added to the order list but will not be executed at the same time as an order you placed before.
  • Time in Force (TIF): Used to set the effective time of the command
  • Good Till Cancel (GTC): The order will be executed until filled or cancelled.
  • Immediate or Cancel (IOC): The order will be partially or fully executed immediately, and will be canceled immediately after that regardless of how many % has been matched.
  • Fill or Kill (FOK): The order will only be filled with the entire volume you place in 1 shot, otherwise the order will not be executed.
  • Reduce-Only: The order will only close your position, not increase it.
  • Triggers: is the price that, when reached, will trigger orders Take-profit-limit, Take-profit-market

Step 4: Instructions to close Binance Futures orders

Closing a contract is when you place an opposite order with the same volume. Eg: You open an order Long 50 ETH. When you want to close an order you place an order Short 50 ETH.

Note: You can close part of the order, but you don’t have to close the whole thing. You will bear the closing fee as above.

A few other operations on the Binance Futures exchange

Guide to choosing another futures contract

binance futures

If you want to trade Ethereum futures, please do as above! Similar to Bitcoin Cash.

Leverage change

leveraged binance futures

Please click as above! Brothers pull “circle” there, pull to whatever leverage you want. Done click Confirm Please!

Hopefully with the article “What is Binance Futures and a detailed guide to Binance Futures from AZ“will help you operate more easily. Wish you luck!

Discuss in closed group at: https://t.me/GTAmargin

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