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Full training of futures trading in Binance

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The term futures refers to the English word “Futures”, which means future. In financial markets, futures are a type of transaction between buyers and sellers in which the delivery date of goods is postponed to a future time. Therefore, in such a situation, users agree to buy or sell a commodity, stock or asset at a future time. The buyer pays for his purchase during the registration of the contract and receives his goods from the seller at the appointed time. As you can see, this type of transaction is different from regular spot transactions in which payment and delivery of goods are both done in the present.

In most global financial markets, futures transactions are accepted as one of the main types of transactions because this type of transaction covers the risk of price fluctuations for producers and consumers and provides the possibility of planning for the future. The price of the transaction and the date set for the futures transaction do not change in any way, and the activity in this market is not limited to producers or large consumers. By operating in this market, traders provide liquidity and benefit from the decrease or increase in the price of the traded asset.


How to open an account in Binance Futures Binance Futures


If you don’t have one, you can go to Binance and click on sign up in the top right corner of your screen. Then follow these steps:

If you have a referral ID, enter it in referral ID. You can use this link for a 10% discount on spot and margin transaction fees.

Now click on Create account.

You will receive a confirmation email. Next, log into your Binance account, move the mouse to the top bar and click on Futures.

How to Fund Your Binance Futures Account


You can transfer your funds between the exchange wallet and the Futures wallet used on Binance.

If you haven’t made a deposit to Binance, we recommend reading How to make a deposit on Binance.

To transfer funds to your Futures wallet, click Transfer in the lower right corner of the Binance Futures page. Set the amount you want to transfer and click Confirm Transfer. You should soon be able to see the balance added to your Futures wallet.

You can also use the money in your Exchange Wallet as collateral and borrow USDT for futures trading from your Futures Wallet Balances page. That way, you don’t have to transfer funds directly to your Futures wallet. Of course you need to pay back your borrowed USDT.


Binance Futures Interface Guide


  1. On the left side of this section, go to information and you will have access to a wide range of detailed market information, and frequently asked questions about futures. You can check the history of rates, open interest, bid/ask ratio, current balance and other market data. Click Spot to go to Binance exchange.

To the right of this section is where you can access your Binance account, including your dashboard. You can easily check your wallet balance and orders across the entire Binance system by clicking on Wallet and Orders. You can also check out the ongoing Binance Futures tournaments by clicking on Tournaments.

  1. In this section, you can control your business activity. You can switch between tabs to check the current status of your positions and current open and previously executed orders. You can also get a complete transaction and transaction history for a given period.

This is also where you can monitor your trades in the auto-delete queue under ADL (important to pay attention to during periods of high volatility).

  1. This is where you can check your existing assets, make deposits and buy more digital currency. Here you can also view information about your current contract and transactions. Be sure to pay attention to Margin Rato to avoid liquidation.

By clicking Transfer, you can transfer money between your Futures wallet and the rest of Binance.

  1. This is the entry part of your order. See our detailed explanations about the types of orders available in the rest of the article.


Adjust the lever


Binance Futures allows you to manually set the leverage of each contract. To select a contract, go to the top left of the page and click on the contract you want (BTCUSDT by default).

To set the leverage, go to the order entry section and click on your leverage amount (by default 20 times). Specify the amount of leverage by adjusting the slider or entering it and click OK.

It’s worth noting that the larger the transaction size, the less leverage you can use. Likewise, the smaller the transaction size, the more leverage you can use.

Please note that the use of Lorage has a higher risk of leakage

It brings more video. New traders should carefully check the amount of leverage they use.


What is the difference between Mark price and Last price?


To avoid liquidation during periods of high volatility, Binance Futures users use Last Price and Mark Price.

It is easy to understand the latest price. This is the last price at which the contract was traded. In other words, the last trade on the trading date defines the last price. This is to calculate your realized PnL (profit and loss).

Mark Price is designed to prevent price manipulation. This calculation is done using a combination of budget data and a basket of price data from multi-point exchanges. Your Liquid and Unreal PnL prices are calculated based on Mark Price.


Please note that the brand price and the last price may be different.


When you set up an order type that uses a stop price as a target, you can choose to use the last price or the mark price. To do this, select the price you want to use in the Trigger drop-down list at the bottom of the order entry section.


What types of orders are possible and when should they be used?


There are many types of orders you can use on Binance Futures.

Limit orders

A limit order is an order that you place at a certain price. When you place a limit order, the trade is executed only if the market price reaches your limit price.


Market price orders


This is against limit orders already placed in the order book. When placing an order in the market, you will pay fees as a market applicant.


Stop loss orders


The easiest way to understand a stop loss order is to divide it into a loss price and a limit price. A loss price is a price that causes a limit order. This means that your limit order will be placed on the order book immediately after the loss price is reached.

Although stop and limit prices can be the same, this is not a requirement. In fact, it is safer for you to set the stop loss price slightly higher than the limit price of sell orders or slightly lower than the price of limit buy orders. After reaching the loss price, the charge will increase your limit order.


Profit limit order


If you understand what a stop loss order is, you will easily understand what a stop profit order is. Similar to a stop limit order, this includes a trigger price, the price that triggers the order, and a limit price, the limit order price that is then added to the order book. The key difference between a stop limit order and a limit profit order is that a limit profit order can only be used to reduce open positions.

Profit limits can be a useful tool to manage risk and lock in profits at specified price levels. It can also be used in conjunction with other order types such as stop orders, giving you more control over your trades.

Please note that these are not OCO orders. For example, if your stop limit order is entered while you also have an active limit profit order, the limit profit order will remain active until you manually cancel it.

You can set the profit limit order option in the order entry section.