Binance Futures has managed to attract the attention of those who want to make high profits with low fees. Binance Futures, which has managed to reach millions of users globally, is a risky option.
In particular, the high volatility and futures transactions in cryptocurrencies allow many people to win, while causing many people to experience high financial losses.
If you are familiar with the Forex markets, you will often hear about leveraged trading. The Binance Futures platform also allows users to trade leveraged and take short/long positions through smart contracts. Let’s examine together what is Binance Futures or Binance leveraged trading!
Table of Contents
What is Binance Futures?
What is Binance Futures Short and Long?
How to Open a Binance Futures Account?
How to Trade Binance FuturesAfter activating your membership
What is Binance Futures Order Type?
What is Liquidation?
What are Binance Futures Benefits?
What Are the Risks of Binance Futures?
What is Binance Futures?
Binance futures offers traders the ability to purchase the corresponding cryptocurrency at a predetermined price at a future time. In addition, the Binance Futures platform provides leveraged trading opportunities to investors by taking short or long positions.
When you trade with Binance Futures, you are not buying a cryptocurrency. Instead, a smart contract is signed with the platform. You buy the coin determined through the smart contract when the time comes.
With futures:
Can take a short/long position You can trade with leverage.
Binance futures are often used for leveraged trading. For example, let’s say you have $100 dollars in your wallet, and you bought $10 worth of coins. When you trade with X10 leverage, you are offered the opportunity to trade $1000.
If you win, you get 10 times the $100. If you lose, you will lose your $100 security deposit. To keep the position open and reduce your loss, you need to add maintenance margin. Otherwise, you will experience the liq situation that you often hear in the crypto market. When you become a Liq, your $100 will be a financial loss.
What is Binance Futures Short and Long?
Short and long positions on the Binance futures platform directly affect your earnings. A short position indicates that the relevant cryptocurrency is expected to decline in the future.
Read More:- https://techjustify.com/what-is-binance-futures-explained-detailed