Recently Binance Exchange Has launched futures trading platform with a huge leverage up to 125x times. With a high leverage like this can help you bring huge profits. If you are a professional trader, why not try? If you are new, you should also learn to know what Binance Futures is.
Let's Blogtienao (BTA) learn about Binance Futures Come on!
What is Binance Futures?
Binance Futures is a Binance futures futures trading platform. Futures are currently traded as Bitcoin. This platform allows you to hit margin with up to leverage x125 times.
Bitcoin futures trading volume indefinitely after BitMEX at the time of writing. For a platform that has been launched less than three months, this is yet another success of Binance.
Currently, the Binance exchange has 2 futures trading platforms. The first is the Binance Futures platform that BTA is introducing to everyone.
The second platform is Binance jex. But JEX is quite underdog compared to Futures. The Futures platform with x125 leverage is still Binance's "money machine".
On November 28, 11, the 2019nd eternal futures contract - ETH / USDT was launched on Binance Futures. With this contract the user can customize the leverage from x2 up to x1 times.
Update 4/10/2020: Currently the platform has updated many other eternal futures contracts such as: BCH, XRP, EOS, ..
Transaction fees on Binance Futures
The following figure is a schedule of perpetual contract transactions.
- Maker: Order maker
- Taker: Matcher
Overview of leverage on Futures trading platform
When opening a position you must pay an initial amount and an amount to maintain the position. The initial amount is called the Initial Margin. The maintenance amount is a maintenance margin.
To be able to understand, please refer to 3 examples below.
Let's say the BTC price is 10000 USDT and you have 40000 USDT in your mortgage account and choose 125x leverage
Example 1: You open 1 BTC, nominal value 10,000 USDT
- Initial Margin: 10,000 * 0.8% = 80 USDT
- Maintenance Margin: 10,000 * 0.4% = 40 USDT
- Collateral: 40000 - 40 = 39960 USDT
- Giá thanh lý: 10000 – 39960/1 <0; bạn sẽ không bao giờ bị thanh lý
Example 2: You open 4 BTC, nominal value 40,000 USDT
- Initial Margin: 40,000 * 0.8% = 320 USDT
- Maintenance Margin: 40,000 * 0.4% = 160 USDT
- Collateral: 30000 - 160 = 39840 USDT
- Giá thanh lý: 10000 – 39840/4 = 40
- Bankruptcy price: 10000 - 40000/4 = 0
Example 3: You open 6 BTC, nominal value 60,000 USDT
With 125x leverage, the nominal value does not exceed 50000 USDT. To execute this command, you must lower the lever to lower levels.
Initial Margin is the amount you need to have when opening a wallet. For example, when the leverage is 125x. At this time, the actual amount you have to pay to open the position is 1/125 compared to the value of the contract.
BTC / USDT perpetual futures contracts
ETH / USDT perpetual futures contracts
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 drops below the maintenance margin.
BTC / USDT perpetual futures contracts
ETH / USDT perpetual futures contracts
This is the amount that the Maker will have to pay to the seller (Taker). Every 8 hours Funding will be once every 0.01% ie 0.03% / day.
This 0.01% level may vary depending on market conditions. This is a direct transaction between the two parties so Binance does not collect any amounts.
Note: Funding Rate will never exceed 0.05%.
Pros and cons of Binance Futures
- Provide high leverage up to x125 times. Highest in the cryptocurrency market.
- Large trading volumes are easy to liquidate.
- Simple interface easy to see.
- Can use Binance account without having to open another account
- Can trade on Binance Android app.
- Relatively difficult to use with beginners.
- Currently Binance Futures does not have an iOS app.
- There are still quite a few trading pairs
Trading guide on Binance Futures
Open Binance Futures account
On the website
You must first have a Binance account. If not, register with the following link: blogtienao.com/go/futures. After registration is complete, everyone chooses Futures.
At the bottom right bottom part Open Futures Account. People fill out blogtienao go to the "Futures referral code”As shown below. Next is to click Open now.
When you enter the BTA referral code, everyone will get it Kickback 10%. That means a 10% discount on transaction fees. Also if everyone uses BNB for a discount, they get another 10% off. So people get up to 20% off the fee. Too good is not it!
Then there will be notification icon Open Success root side on screen. So successfully opened the account Binance Futures and that. Too simple, right?
On the Binance App
First of all, people go to the "Fund”Then click Futures.
Next, people enter the code "blogtienao”10% discount when trading and support Blogtienao. Finally, you press the button Open a Futures account is done
Learn the trading interface
- Indicators of futures
- Place to display positions, margin balance, open positions, order history and transaction history.
- Order book of buyer and seller
- The transaction was made
- Place of order LONG / SHORT
How to transfer money to Binance Futures
At the order place, click on the word Transfer.
After clicking on Transfer, it will appear as the picture below. You enter the amount at the section "Amount" then press Confirm Transfer. So, it has changed from a wallet to a Futures wallet.
To switch from Binance Futures back to your wallet, just click on the middle button. Change the From-To section to From Futures Wallet - To Exchange Wallet. Next, enter the amount in the section "Amount" then press Confirm Transfer. So has successfully transferred to wallets.
How to place an order on Binance Futures
Before placing orders you need to understand the following words
- Post-Only: This command will be added to the command book but not immediately executed
- Time in Force (TIF): Effective time.
- Good til Canceled (GTC): This order will be executed until matched or will be canceled
- Immediate or Cancel (IOC): The order will be partially or fully executed immediately and the rest will be canceled.
- Fill or Kill (FOK): Orders must be fully executed immediately or canceled.
- Reduce-Only: This order will only close your position, not increase it.
- trigger: is the price that will trigger the Take-profit-limit, Take-profit-market orders
- Mark Price: Prices are calculated by Binance based on the prices of major exchanges and Funding Rate.
- Last Price: The latest prices are traded on Binance Futures.
- Cost: The USDT number you need to enter the LONG / SHORT order.
- Order Qty: Number of orders.
How to switch between different contracts
The Binance Futures futures trading platform currently has 2 types of BTC and ETH contracts. But in the future, Binance will also launch more trading pairs. Here's how you switch to different contracts:
In region (1) as I said in the transaction interface. You move the mouse to the BTCUSDT section. My part was framed in blue as shown below.
The trading pairs are shown. Click on the contract you want to trade is done.
Customize leverage levels on Binance Futures
In the area of futures contracts you click 20x
After that, an adjustment frame will appear as shown below. Now you can adjust the leverage from 1x-125x. To confirm the leverage, press Confirm.
When successfully adjusting the desired leverage on Binance Futures, the following message will appear.
This is an order used to Buy / Long or Sell / Short at the desired price.
For example: You want to Buy / Long 1 BTC for 9000 USDT. You only need to enter 9000 into the section "Price" and 1 on the section "Order Qty". Finally, just press the button Buy / Long. You can choose Post-Only or TIF depending on the purpose. Same for Sell / Short order.
This command helps you LONG / SHORT in the fastest way. This order will match the best available price in the order book.
For example: Market price of 9000 USDT / BTC. You think BTC has increased and you Buy / Long 1 BTC with current price, you only need to enter 1 at "Order Qty" Then press the button Buy / Long.
This is the order that will trigger a limit order when the market price reaches the Stop Pirce. Limit
For example: Price BTC 10000 USDT. You place a Sell / Short Stop-Limit order. The price of Stop Price is 10200 USDT. Limited price 10215 USDT. Quantity of 1 BTC. When the price of Bitcoin reaches 10200 USDT, there will be a Sell / Short order at 10215 USDT placed for 1 BTC.
This command will trigger a Market order when the Stop Price is reached.
To place this order, you put your mouse on the arrow mark part Stop-Limit then select Stop-Market. Same for the remaining commands.
For example: Price BTC 10000 USDT. You place a Sell / Short Stop-Market order. Stop-Price price is 10100 USDT. Quantity of 1 BTC. When the market price reaches 10100, a Market order will be placed for 1 BTC at the market price.
Same as Stop-limit, but the price will go in a favorable direction. This command is used to place a target on an open position. Don't take profits and close positions.
For example: Current BTC price 10500 USDT. Trigger Price - 10100 USDT, Price - 10050 USDT. Quantity of 1 BTC. If the price of BTC reaches 10100 USDT then a Sell / Short order is limited to 1 BTC with a price limit of 10050. People should set Price <Trigger Price to increase the chance of being triggered.
This order is similar to Take Profit Limit but has no price limit.
For example: Current BTC price 9000 USDT. Trigger Price 10000 USDT. Quantity of 1 BTC. Users choose Buy / Long. If the BTC price reaches 10000 USDT then there will be a Market order for 1 BTC placed with the market price.
The future of Binance Futures
It's only been operating for less than three months but Bitcoin futures trading volume is second only to BitMEX. Recently, the trading volume has exploded nearly 3 billion USD in 24 hours. In the future, the trading floor for futures contracts will grow even stronger.
Binance is also planning to launch more trading pairs, cross-collateral trading and launch the Binance IOS app.
Hope the article What is Binance Futures? Complete usage guide from AZ " help you better understand Binance's eternal futures trading platform.
Leveraged investment can bring big profits but the risks involved are not small. Everyone should consider and manage risk. Blogtienao (BTA) I wish you every success in this field. Thank you for viewing the article!