A step-by-step guide to trading Futures on Binance
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We have learned about terms related to Futures trading and how to create a Futures trading account. However, if you are new to the Binance platform, you may not know how to access the Futures market and start trading. The following article will guide you in detail step by step to successfully execute a trade on Binance Futures.
What is fee trading Futures on Binance?
When trading on any market, an essential factor is the transaction fee. Trading fees can affect profits and even cause losses if not considered before developing a trading strategy. It is critical if the trader using the system is day trading, as the fees can be pretty substantial when trading continuously. Binance is quite transparent in its fees.
Futures Binance trading fees are divided by account level, and fees apply to Maker and Taker. In addition, users who use BNB to pay transaction fees will receive discounts. The lowest level (VIP 0) has a 0.02% Maker fee and 0.04% Taker fee. If using BNB as a transaction fee is enabled, Binance reduces this fee to only 0.018% and 0.036%.
To get better fee incentives, users need to maintain a certain amount of BUSD in the account to increase the VIP level of the performance to a higher level. Accordingly, the higher the VIP level, the lower the transaction fee.
The transaction fees of the Futures market are usually lower than that of the Spot market. However, the request volume is five times larger than Spot with the Futures market to increase the VIP tier.
Why trade Futures on Binance?
- Trading Futures on Binance users can choose from over 500 different tokens from Defi tokens to emerging cryptocurrencies. Trading pairs are constantly being updated to meet all investor needs.
- Binance is the world’s leading large exchange, so it is the most liquid in the market. Users can quickly complete transactions and suffer less from slippage.
- Binance Futures charges relatively low fees compared to similar exchanges. Trading fee is even only 0.000% / 0.017% with VIP level 9. This is a big advantage for high volume traders to keep their profits. In addition, Binance also offers a fee reduction for transactions that pay fees in BNB or BUSD, so users can save even more.
- Binance Futures offers leverage up to 125x making it easy for traders to implement trading plans even without much investment.
- Binance Futures offers both BUY and SELL orders, making it possible for users to take advantage of any trading opportunity whether the market is up or down.
- Binance currently has close to 30 million regular users, making it a reputable brand in the crypto trader community.
- Binance has a trillions of dollars trading volume in 2021, and Binance’s daily peak trading volume is up to $76 billion. This ensures excellent liquidity and reputation for users.
- The security features of Binance are built very strictly, including KYC, 2FA, … to protect user accounts.
- In particular, Binance has an insurance fund of nearly $300 million to protect its users to ensure that traders’ profits are fully paid and their assets are secured.
- In addition, Binance supports 17 different languages globally with a fairly easy to use interface to ensure that anyone can trade smoothly.
How to trading Futures on Binance?
Login to your Binance account to trade Futures. If you don’t have an account, register using the link below:
* See more: The complete guide Binance from a to z
On the toolbar, select Derivatives and select the contract type: USDT-M Futures, COIN-M Futures. The following article illustrates on USDT-M Contract.
Select the trading pair in the upper corner of the screen.
Transfer/buy coins to a Futures account:
- If you do not have coins on your Binance account, click Buy Crypto.
- If you have coins in Binance but in Spot wallets, click Transfer.
- If you already have a coin, but that coin is not in the list of coin pairs in the Futures Contract, click Convert.
This article illustrates transferring money from Spot wallet to Futures wallet. The remaining forms do the same.
- Select Transfer
- Choose the coin currently in the Spot wallet
- Fill in the quantity
- Click Confirm
Select margin mode (Cross or Isolated) and leverage mode, and select Confirm.
- Cross Margin Mode: Use the full balance in the margin account to avoid liquidation of open positions.
- Isolated Margin Mode: Only use the margin amount in case the position is at a loss and need to liquidate the open position.
- If using margin, users should only choose Isolated mode to manage the capital for each order individually.
Choose the type of order you want to trade:
- Enter the quantity,
- Options for stop loss, take profit
- And choose a Buy/Long or Sell/Short position.
After placing an order, the transaction information will be displayed in the lower corner of the screen, below the chart.
- If you want to close a position immediately, you just need to click on the position you want to close, the order will close immediately.
- If you want to close all positions, click on “Close all positions”
So we have learned how to place Futures orders on Binance. However, to trade successfully, you need to know more knowledge about chart analysis, technical analysis to identify good trading opportunities. Binance Futures is a risky market, especially when leveraged. Users need to limit the use of high leverage to avoid risks for investment capital when the market does not follow expectations.
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