Binance Futures Trading: What You Need To Know-Step-by-Step Guide

Binance is one of the largest and respected crypto trading platformthat allows traders to trade hundreds of cryptocurrency. The exchange has bolstered its offerings after beginning as a spot trading exchange whereby traders could only profit on prices moving up.

What is Crypto Futures Trading?

Binance futures trading is the latest sensation that allows traders to use leverage and profit on prices of altcoins moving up and down. As is the case with CFDs, one can open long and short positions in the platform to profit as prices fluctuate.

Cryptocurrencies' prices do not always move up. Given the extreme levels of volatility, prices do experience severe downward price action. Conversely, the Binance Futures trading platform makes it possible for traders to speculate on price moving lower and consequently generate profits.

Likewise, the platform allows traders to engage in leverage trading. In this case, traders only have to put a small amount to open large positions. A leverage of as much as 1:100 allows traders to maximize returns by trading more than 100x funds in the account.

Opening a Futures Account

Trading futures contracts in the cryptocurrency market is straightforward. All you have to do is open a regular Binance account then a Binance Futures trading account to access the Futures interface. Given that all futures contracts in the platform are traded in Tether, you will have to deposit some Tether to start trading.

The Binance futures interface gives all the chart information that one needs to speculate on the price of various cryptocurrencies. It also comes with a depth chart and order book as well as all the latest trades posted in the market.

In addition, traders also stand to access all the information about the trading activity as well as all trades processed in the platform. Conversely, one can track performance and understand all the trades executed in the past.

Market Orders Supported

The crypto futures trading platform accords traders an opportunity to leverage various market orders to squeeze profits from the cryptocurrency market. Some of the orders supported by the futures trading platform include Market Orders, Stop Limit Orders, and Stop Market orders, as well as take profit limit orders and Take Profit Market orders.

Cryptocurrencies supported

As a leader in cryptocurrencies trading, Binance supports a wide array of cryptocurrencies that traders can also leverage in futures trading. Likewise, the platform has extended a variety of trading pairs besides Bitcoin.

The pairs that traders can leverage in futures trading include:

• Ethereum (ETH) / USDT
• Ripple (XRP) / USDT
• Binance Coin (BNB) / USDT
• Bitcoin Cash (BCH) / USDT
• Litecoin (LTC) / USDT
• Ethereum Classic (ETC) / USDT
• Monero (XMR) / USDT

Advantages of Binance Futures trading platform

High trading volume and liquidity make it possible to enter and close positions with ease at desired price points. Similarly, Binance is a trusted brand when it comes to cryptocurrency trading. It adheres to the best industry practices while offering industry-leading security.

Disadvantages of Trading Futures on Binance

One of the biggest drawbacks of Binance as a futures trading platform is that it requires traders to first deposit Tether to trade. The platform relies on the controversial Tether stablecoin.

Bottom Line

Bitcoin futures trading platform offers an ideal way of speculating on cryptocurrencies price action; similarly, it offers a way to hedge positions and improve on risk management as a way of protecting a crypto portfolio.

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