Binance Futures Trading: What It Is and How It Works

We learned about the 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 step-by-step detail to successfully execute a trade on Binance Futures.

What is Futures Commission Trading at 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 crucial if the trader using the system is day trading, as the fees can be quite substantial when trading continuously. Binance is quite transparent in its fees.

Binance Futures trading fees are divided by account level, and fees apply to Makers and Takers. In addition, users who use BNB to pay transaction fees will receive discounts. The lowest level (VIP 0) has a Maker commission of 0.02% and a Taker fee of 0.04%. If using BNB as a transaction fee is enabled, Binance reduces this fee to just 0.018% and 0.036%.

To get better pricing incentives, users need to keep a certain amount of BUSD in the account to increase the VIP level of performance to a higher level. As a result, the higher the VIP level, the lower the transaction fee.
The transaction fees of the Futures market are usually lower than those of the Spot market. However, the volume of requests is five times greater than Spot with the futures market to increase the VIP level.

Why trade futures on Binance?

  • Users of Trading Futures at Binance can choose from over 500 different tokens from Defi tokens to emerging cryptocurrencies. Trading pairs are constantly updated to meet all investors’ needs.
  • Binance is the world’s leading major exchange, so it’s the most liquid on the market. Users can complete transactions quickly and suffer less from slippage.
  • Binance Futures charges relatively low fees compared to similar trades. The trading fee is also only 0.000% / 0.017% with VIP level 9. This is a great advantage for high-volume traders to keep their profits. In addition, Binance also offers a reduction in fees for transactions that pay fees in BNB or BUSD, so that users can save even more.
  • Binance Futures offers up to 125x leverage making it easy for traders to implement trading plans even without too much investment.
  • Binance Futures offers both BUY and SELL orders, allowing users to take advantage of any trading opportunity whether the market is up or down.
  • Binance currently has nearly 30 million regular users, making it a reputable brand in the cryptocurrency trading community.
  • Binance has a trading volume of trillions of dollars in 2021, and Binance’s daily peak trading volume is up to $76 billion. This ensures excellent liquidity and reputation for users.
  • Binance’s security features are built very strictly, including KYC, 2FA, … to protect user accounts.
  • In particular, Binance has an insurance fund of almost $300 million to protect its users to ensure that traders’ profits are fully paid and that their assets are protected.
  • In addition, Binance supports 17 different languages globally with a fairly easy-to-use interface to ensure that anyone can trade smoothly.

How to trade futures on Binance?

Log in to your Binance account to trade futures. If you don’t have an account, register using the link below:

On the toolbar, select Derivatives and select the contract type: USDT-M Futures, COIN-M Futures. The following article illustrates the USDT-M contract.

Select the trading pair in the upper corner of the screen.

Transfer/buy coins to a Futures account:

  • If you don’t 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 covers transferring money from your Spot wallet to your Futures wallet. The remaining forms do the same.

  • Select Transfer
  • Choose the coin currently in your Spot wallet
  • Fill in the quantity
  • Click Confirm

Select the margin mode (Cross or Isolated) and the leverage mode, and then select Confirm.

  • Cross margin mode: Use the entire balance in the margin account to avoid liquidation of open positions.
  • Isolated margin mode: Use the margin amount only in case the position is at a loss and you need to liquidate the open position.
  • If you use margin, users should choose only isolated mode to manage 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 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 if it is leveraged. Users should limit the use of high leverage to avoid risks to investment capital when the market does not follow expectations.

Inline Feedbacks
View all comments
invest 60

Selling Cryptocurrencies on Binance: How to Do It Quickly

investimenti 86

Binance DEX Vs Binance: Advantages and Disadvantages