How Binance Futures Trading in Benefiting the Experienced and Novice Traders?
by Trailing Crypto cryptocurrency expertsFutures trading could be
profitable, if a trader understands the market. Most of the traders spend years
in trading without even understanding how the market works, and this leads to
unsuccessful trading. With years of experience, the pro traders study the
market actively and as per their opinion, Futures trading is the best way to
earn money in crypto trading.
Binance
Futures Trading
Futures trading offer the
unique opportunity to the traders to earn profits regardless of the market’s
direction. There are chances that the price fluctuations may either boost their
portfolios or can go short. These features have made this kind of trading as
one of the most preferred options among crypto enthusiasts. On Binance Futures trading platform, the
traders can go long or short with leverage to reduce risks or seek profits in
the volatile crypto market. By going long, the trader is buying a futures
contract with an expectation that it will rise in value in future. And,
conversely by going short, the trader will bet on prices to decline in future.
If you want to start trading on Binance Futures, you must follow the below steps:
- Deposit USDT, BUSD into the USD-M futures account as margin and other coins in COIN-M futures as margin.
- Select the leverage level
- Now choose the order type like if you wish to buy/sell
- Define the number of futures contracts that you want to own
Binance Futures trading allows its traders to trade with leverage/margin where he makes use of the borrowed funds from Binance exchange to increase his trading position beyond what he could obtain from his available cash balance alone in his wallet.
The traders use futures
trading as a hedge against the spot markets. The ability to use the leveraged
funds increases the profitability of any trade. For example, a trader with an
account balance of $100 could use 10x leverage and may borrow $900 to enter a
long or short position with $1000. If the trade goes in his favor, a 10% price
change could help him double his funds within a shorter period.
What’s
new in Binance Futures trading?
Not only the experts, but
the inexperienced traders are enjoying the benefits of Binance Futures to
sharpen their crypto trading skills. According to latest news, Binance Futures
is launching USDT-margined GMT perpetual contracts with up to 25x leverage at
15 March, 2022. This means that now users will be able to select between 1-25x
leverage.
Things are getting more
interesting in Binance Futures as the platform has introduced a chatbotthat
will encourage its traders to share their experiences. They will discuss their
trading strategies to help other traders succeed. This will also help traders
to stay up-to-date about the latest trends in crypto trading market.
Binance Futures allows grid
trading which is a static tool to automate the buying and selling of the
futures contracts at preset intervals around the present price range. This
helps traders to earn profits even on the small price fluctuations.
One of the key benefits of
grid trading strategy is that it allows traders to trade smartly and
systematically without knowing the need to forecast the market trend. So,
instead of watching the market continuously, one may set up the grid trading
strategy on their trades on Binance. If you are an advanced trader, you may go
to the Binance futures strategy trading to put your grading strategy in
practice. They may manually customize and set the grid parameters on their own.
The beginners may use Binance trading bots to automate their trades based on
the preset strategy by experts on the exchange,
Automated
trading bot for Binance
Binance trading bot analyses
the changes in the price in market across all coins on Binance futures and
place trades on the most volatile ones automatically. It also keeps track of
all the crypto assets bought, and then sell them according to the pre-specified
take profit and stop loss levels by the trader.
The Binance Futures trading
bot works on the grid trading strategy. To use this, one has to open the
Binance futures account first as the bot is available on Binance futures only.
The traders can also create their own crypto trading bot on Binance futures and
this has gained huge popularity. One can either choose copy/paste bots that
everyone is using or you may develop your own unique algorithms to outperform.
A Binance trading bot trades on the behalf of
its traders based on the preset rules and strategies that the traders set for
them. They execute trades by making use of algorithms to make buying and
selling decisions automatically.
Why
should you trade on Binance Futures?
There is no secret that derivative trading is becoming highly popular these days and more traders are taking the opportunity to make quick profits. And, Binance Futures is one of the best options that will get traders closer to achieving their crypto trading goals.There are numerous benefits of trading futures on Binance, let’s have a look at some of them:
- Binance Futures offer a huge selection of cryptos to its traders and there are more than 530 crypto-to-crypto trading pairs.
- Due to the enormous selection of trading pairs, Binance Futures have become ones of the most liquid derivatives exchange in crypto trading market. Here the traders can always expect the buy and sell orders to get filled instantly without worrying about the slippage.
- The most attractive feature of this platform is its lower fee structure.
- Binance Futures also provide a wide range of leverage for accounts with a balance of $0 to $50,000 so that the trader can grow their portfolios.
- Now what’s even more attractive and fascinating in Binance Futures is its ability to make profits regardless of the market direction. Traders can implement different strategies and tools to earn profits like grid strategy, Binance trading bots, and more.
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Created on Mar 17th 2022 11:42. Viewed 290 times.