Learn trading features on Binance: Trading P2P, Spot, Futures, Margin
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After learning about the interface of Binance, you can see that Binance is a highly complex ecosystem with many different ways of investing and trading. This article Investiki.com will introduce the trading features of coins and coin pairs so that you can better understand and know how to use these trading features. To make money on Binance, you have many options through Binance’s trading or investment platform.
* See more: The complete guide Binance from a to z
* See more: The complete guide Binance from a to z
Binance has the following trading features:
- P2P Order
- Spot Order
- Futures Order
- Margin Order
P2P trading has only two types of orders you can execute: Buy and sell are straightforward to use.
Meanwhile, when using Spot, Futures, or Margin, you can use different order types on Binance, such as Limit (limit order), Market (market order), and Stop-Limit (Stop – limit order) ), and OCO orders are very flexible and have near-instant matching speed.
P2P Trading Binance
P2P trading order (P2P order) on Binance is buying and selling coins directly between two users. When you have Fiat money (VND or USD), you want to deposit coins into Binance, and you can buy coins via P2P. On the contrary, when you want to withdraw money from Binance to your bank account, Paypal, etc., you sell coins via P2P.
Before making a P2P transaction, you need to complete identity verification, enable 2-factor security, and add a payment method to your Binance account.
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To access the P2P Market, on the toolbar, click Trade, then select [P2P]:
- How to buy coins via P2P with fiat money
- How to sell coins via P2P to withdraw fiat money to your account
Spot trading Binance
Spot Order (Spot Order) on Binance is a form of coin trading in pairs. You can use coin A to buy coin B or vice versa. When you want to trade any coin pair, you must own one of the two coins in that pair. It is a form of online trading with fast order matching speed and high liquidity almost instantly.
You need to transfer funds to your Fiat and Spot accounts to trade Spot.
- How to transfer coins between Binance wallets
- What is Binance Spot Trading? Learn about spot order types and spot wallets
- How to buy coins via Spot Binance
Binance built two interfaces for you to make Spot trades, the [Classic] and [Advanced] versions.
- The [Classic] version: Uses a simple and easy-to-use interface, suitable for newbies. On the toolbar, click Trade, then select Classic.
- [Advanced] version: Full of Binance features and tools on the same screen. Same as above, you choose Trade/Advance to access the advanced version of spot trading.
Margin Trading Binance
Margin trading on Binance allows you to borrow money to make leveraged trades. Through leverage, you can maximize both your profit and loss on your transactions. To trade Margin, you need to do the following steps:
- Open a Margin account
- Transfer money to Margin account
- Margin trading (auto-borrowing and auto-repaying).
- Binance Margin Guide: Notes to know to avoid losing money when trading
- Instructions for opening an account and trading Binance Margin
- Answers to the quiz when opening a Binance Margin account
To access Margin trading, you choose Trade, then Margin.
In Margin trading, there are two modes Isolated Margin and Cross Margin. Margin wallet is also separate between these two modes. To make a Margin transaction in any way, you need to transfer coins to precisely that account.
- Isolated margin mode: Margin assets are only used for specific trading pairs, and risk applies to detailed trading pairs accounts.
- Cross Margin Mode: Margin can be used for all pair trades, and the risk applies to the entire account.
Trading Futures on Binance is also known as Cryptocurrency Futures. It is a form of derivatives trading.
When trading Futures, you are not buying and owning real coins but only contracts that represent the value of a particular cryptocurrency. That contract is an agreement that you will buy or sell a currency at a specified time in the future.
In Futures trading, there are two types of contracts according to the kind of settlement asset, including:
- Coin-M Futures: Paid in Cryptocurrencies.
- USDT-M Futures: Paid in USDT or BUSD.
Within each of these types of contracts, there will be two types of agreements by term:
- Forward Contract: There is no specific expiration date.
- Quarterly Contract: Has a pre-determined maturity date.
To trade Futures, click [Derivatives], then select USDT-M Futures or COIN-M Futures. You must transfer funds to the same wallet (USDT-M Futures Wallet or Coin-M Futures wallet).
- What is Trading Futures on Binance? Things to know before trading Futures
- Open a Futures Account and transfer money to a future account
- Binance futures quiz answers before trading Future Binance
The above article Investiki.com gave an overview of the trading features on Binance. In the following article, we will learn more about other investment and earning features on Binance.
Read more: Binance