A look at the cryptocurrency arena can throw someone for a loop.
Yes, the digital currency exchange market can give you so many options that deliberating on the right trading platform can be absolutely overwhelming. This is a challenging feat for both newbie and experts in the cryptocurrency space.
Binance, a popular crypto-to-crypto trading platform, had its origins in China but has moved to Malta in EU which is considered to be the global capital of the digital currency.
Binance is relatively young, having started in the cryptocurrency in 2017, but has been a dynamo thus far and is now in fact regarded as the largest cryptocurrency trading platform in the world.
Binance has been continuously making headway over the last few years and has expanded its range of services to cater to different levels of cryptocurrency users. Right now, Binance also offers crypto future trading.
What is Binance Futures?
Futures refer to contracts that are tied up to specific assets that enable individuals and organization to trade or engage in buying or selling of assets at a predetermined date and price. You see this at work with traders who hedge against risk or speculation in the market.
In order to gain ground, companies would just opt to buy commodity futures if they think it has potential in the future as anything could happen in a couple of months.
At the same time, you can go great guns with virtual currencies that you can trade through Binance futures contracts given by varied parties in the exchange. Binance is the only trading platform that does this.
Start Trading Binance Futures
To start trading, you have to open or register a Binance account. Once you have an account, log in to the system and choose the Trade section on the main screen.
Press Futures and then you would be given an option to log in to the Futures Trading Services. This service has some user restrictions depending on country or region.
Once you are in the Open Future Account, click on Open Now to enable the Binance Futures service. You can now proceed to add funds to your Binance Futures account.
This would usually take just a few seconds. You have an option to move or transfer the cryptocurrencies you have on your existing Binance account or just use the funds from your other cold wallets.
Tools of the Trade
You will be provided a chart that you can use to start with Binance Futures trading.
This has all the information and tools you need such as an order book, depth chart, prices of assets that you are trading, and last trades posted or your trading activity if you have been doing this for awhile. This provides you an insight on your trading performance.
Trade with Leverage
It is interesting to note that Binance Futures has brought to view an option that would let you trade with leverage for every contract that you decide to open. You have leverage options that you can adjust from 1x to 125x that will allow you to to generate massive profit with the right trading strategy.
What is the Mark Price and Last Price?
With the cryptocurrency market, you don’t want to fall short or overshoot the mark. We all know that the digital currency space is already highly volatile. The digital coins tend to fluctuate a lot. Understanding and differentiating the mark price from the last price is very important to avoid any price manipulation. You can always select which one you’d use to set the trigger. The ball is in your court.
Orders for Traders
Traders can place different orders with Binance Futures. Order options would include Market Orders, Limit Orders, Take-Profit-Market Orders, Stop-Market Orders, Stop-Limit Orders, and Take-Profit-Limit Orders.
With this, traders are able to buy and sell a contract in reference to the current market price. This would usually have higher fees in comparison to limit orders because the trader would be dealing with the liquidity straight from the order book.
In this case, the trader sets the price for the contract that he wishes to buy or sell and then wait for the trade to get filled which can take a couple of seconds to hours. This will determine the price.
Stop Limit Orders
This allows placing limit orders when the price gets towards a stop price which you have previously chosen. Once the contract price reaches a stop order, the limit order is placed in the order book.
Stop Market Orders
This works basically in the same way as the stop limit orders. However, with this, users are only able to place a market once the contract reaches a stop price.
This requires a limit price and a trigger price. This can be used to minimize open positions. It is also useful in locking in profits and managing risks as soon as the contract reaches a particular level in the market.
This offers users a away to set or get triggers for their specific orders with a stop price.
Investing in Binance allows you a safe trading platform which is a major plus point. Also, with perpetual contracts that are anchored to the prevailing index price, the trader is able to terminate or close at any point in time.