Good day. Today we have a review of Binance Futures – a new and promising platform from the popular cryptocurrency exchange BINANCE. This system will allow you to trade contracts, like on Bitmex, but with much more incoming, because commission is lower, and have a lot of useful tools. So I will explain to you more next.
What is Binance Futures
Binance Futures is a separate platform of the BINANCE cryptocurrency exchange offering the opportunity to trade futures. Futures is a contract with a future date. The contract, in turn, is a financial transaction, a type of product, relations on which will be settled in the future. The most striking example is the Bitmex exchange.
The main difference between Binance Futures and the normal crypto market (Spot market) is the price of the digital money. That is, the rate, for example, BTC_USDT in the Spot market is different from the BTC_USDT in the Futures market. Moreover, the course and cost of any coins on the Futures is always higher. This is due to additional costs for the profitability and storage of contracts.
In the short term, the difference in asset prices is very significant. However, in the long run, Binance uses a system of financing rates, which allows bringing prices closer between Futures and Spot markets. You can trade BTC_USDT in the Futures market as well as in the Spot market. Here is using traditional contracts, not the reverse contracts.
Register for Binance Futures
Follow the link – Binance Futures. On the main page, click on the “Register” button. In the Referral ID field, enter the promo code – botcryptotrade, and you will get a 10 percent discount on all trading commissions. Next, the link will be sent to your email to confirm registration. Verification in Binance Futures is not required, but all users must to ON “Google Authenticator”.
After login the platform, go to the Futures page, and click on “Open Now”. For trading, you have to transfer funds from a Spot account to a Futures account. Click on the “Transfer” button. Enter the amount in BNB or USDT, then click on the “Confirm Transfer” button. You can also transfer money from the Futures market to the Spot market back.
If you do not have a Spot account or money on it, then instead of “Transfer”, click on the “Deposit” button. On the next page, platform will offer to choose tokens for input. The main advantage of Binance Futures is a high leverage from 20x to 125x with a low commission. Keep in mind that high leverage increases maximum profitability, but the risks of losses also increase.
How to Trade Binance Futures
These kinds of orders are available on this platform: 1) Market order – instant buy or sale at the best market price. 2) Limit order – placing an order with a certain value for the future. That is, indicate in the order the price level at which you are ready to buy or sell an asset. And if the price reaches this level in the future, then your order will open the deal.
3) Stop limit. An order with certain conditions that are valid for a certain time. The condition is the stop price, when the rate reaches it, the order will turn into a limit and will open the deal. It is necessary to indicate the limit price, the number of cryptocurrency, and click “Sell short”. Further, the choice of leverage is offered, which by default is at the level of 20x.
Before opening the deal, the platform automatically shows and determines its possible volume, guided by the established leverage. Binance Futures also has a test futures platform where you can practice trading. It is available on page https://testnet.binancefuture.com/en/futures/BTCUSDT, where you need to create a new separate account.
In conclusion, I would like to mention the benefits of Binance Futures. First, BINANCE is a leader in cryptocurrency exchange. The second is a lot of liquidity. Third – a lot of contracts for trade. Fourth – leverage up to 125x. Fifth – low commission on trade. Sixth is a test network for training. There is only one drawback – deposit to account in the Futures market is possible to do only in BNB or USDT.
In this video, we had a review of Binance Futures. This platform offers leverage of 125 percent and high profit. The platform is very promising and is constantly being developed, however, along with high profit, the risks of losses are also high. In the future, more videos about education of the Binance Futures will release on botcryptotrade.com. But the way, Binance Futures you can use with 3COMMAS bot as well. That’s all and see you in the upcoming videos.