Binance Futures, one of the most popular platforms for futures for crypto currencies, offers 20x leverage. (Previously it was 100x). Every trader who is a crypto-trader starts their crypto trading journey by spot-trading. Once they have developed their skills as a trader that they can be able to maximize profits and minimize risk using innovative strategies. In the long run, a spot market is great, but you can opt for futures trading if you are looking to short-sell an asset or increase the leverage in a trade, get more info!
Futures are the most common type of derivative trading. They are the regulated contracts between two people that involve an agreement to buy or sell an underlying asset. Futures Trading is a method for traders to shield themselves from market volatility and make sure they can purchase or sell assets for an agreed price in the future. If the price shifts in the opposite direction, traders might end up paying a higher price than the market or selling the asset at a loss.
Future contracts can be used to make money from price fluctuations and gain exposure to cryptocurrencies without the need to actually purchase or sell.
Why would anyone think about considering Binance Futures?
The spot market permits traders to purchase or sell cryptocurrency at any time but with certain limitations. In this type of trading, traders must even be able to hold assets for a period of time before they are able to make profits.
Futures trading lets traders diversify portfolios, increase exposure to cryptocurrencies from different sources and achieve this without the need to hold the underlying asset. Utilizing crypto derivatives can allow for greater capital efficiency. In addition, short-selling can give them more chance to earn profits, even if the value of an asset falls.
Binance Futures, the most liquid derivatives exchange on the crypto market, offers the most competitive rates to its customers to help them avoid unnecessary risk. The leverage trade offered by the Binance Futures platform allows the traders to open positions which are bigger than their capital for crypto assets. You can open a trade that is 50 times larger when you open an account that is 50 times more than the capital you have.
Access a range of options
Binance Futures Trading offers its traders a myriad of options, including grid trading, Binance trading robots advanced order types, and more. This makes for a more seamless trading experience. It’s beneficial to use advanced orders to further ensure seamless trades. Like, if a trader puts a limit order then a stop-loss or take profit are able to be put in place simultaneously. This allows traders to create an initial and a secondary order simultaneously, with the former being an limit order, while the latter is the stop loss and take profit order.
The incredible features and technology allows traders to design their strategies according to time. This helps to ensure consistency while managing the risks correctly.
Before trading futures, you are required to sign up for an account with a Binance Futures account when making use of the Binance app or on the Binance website. Register here by entering your email ID after which you must accept the terms and condition and then following the steps. You’re now able to trade on Binance Futures using leveraged or margined trading.
Grid Trading and Binance Trading Bots
Grid trading is an extremely beneficial feature on Binance. It allows traders to automatize their crypto trading processes by trading futures contracts. You can use this feature to make as many sell or buy orders as you like while still earning profit within the price range. Grid trading is when the orders are placed over and below the price set and create an array of orders with price increases and decreases.
If you are a novice trader and don’t know much about grid trading or how to set up a grid trading bot on Binance, you may consider a third-party crypto trading platform such as CryptoHopper or TrailingCrypto. These platforms facilitate trading. Grid trading bots on the Futures Market are more suitable to those who would prefer the idea of trading continuously.
If you choose a third-party platform you can automate your process through the use of Binance trading bots. The futures trading bots on Binance lets traders divide their funds into smaller parts/grids and then purchase the asset at regular intervals. You can also create an individual plan by connecting your terminal account of a third-party to Binance Futures.