Binance crypto futures
What is Binance?
One of the most important aspects of the cryptocurrency market is its decentralization, however, it still needs centralized infrastructure elements to fully exist. One of these elements is exchanges, of which there are a lot, but only a few can be trusted. And the first exchange that comes to mind is Binance.
This exchange has earned the trust of the crypto community primarily due to a strong team of developers who know their business very well. The founder of the Binance cryptocurrency exchange, Changpeng Zhao, is one of the main developers of the popular Blockchain.com platform. In August 2017, one of the leading financiers and the most influential people in China's online economy, Yi He, joined the company.
At the moment, Binance cryptocurrency derivatives trading platform regularly attracts new investors and sponsors for the constant development and improvement of the platform.
Initially, the exchange focused exclusively on trading in pairs with various cryptocurrencies, without using fiat money. However, this approach has recently begun to change, and exchange offices make it possible to trade in pairs with local currencies.
The exchange has a large number of advantages, such as:
- Wide product line.
- High performance. (The platform stands out among peers in that it supports up to 1.4 million transactions per second.)
- Intuitive interface. (The design and logic of the site are built in such a way that anyone, even a novice user, will understand.)
- Cross-platform. (You can trade crypto on Binance not only through a website adapted for both PCs and smartphones. There is an application for IOS and Android, as well as through the Wechat platform.)
- Minimum amount to start.
- Security system. (Authorization in 2 stages on the exchange will reliably protect the data and finances of users.)
- Instant Trades. (Buying and selling cryptocurrency on Binance is quick and easy.)
Buy Binance cryptocurrency derivatives now and start earning today!
What are derivatives?
Usually, derivatives are called a contract for the supply of a product (underlying asset) after a certain time on certain conditions.
A derivative is any financial asset, the value of which is formed and determined depending on the value of the underlying asset.
Thus, derivatives are term transactions that are not related to the direct purchase and sale of securities, and obligations for which directly or indirectly depend on the exchange or market rate of securities, on interest rates or other types of income, on the exchange rate or units of account. (indexes). Such transactions (delivery of the underlying asset and payments) are made not on the day the transaction is concluded, but after a certain period of time. Therefore, the derivatives market is also called the futures market. These papers can be called fictitious capital of the second or third order. Derivative financial instruments got their name because the fulfillment of obligations on them involves the implementation of operations with other securities that form their basis (stocks or bonds). Derivative securities are used on the exchange by traders when performing operations on the stock market to obtain speculative income or to reduce risks. The underlying asset for derivatives is primarily common or preferred shares.
To understand what derivatives, including financial ones, are, it is necessary to turn to history. The first derivatives appeared in Japan in the 18th century. Historians argue that along with cash goods (for example, rice) at fairs, peasants traded empty rice baskets between harvests. Such a basket was sold cheaper than a full one. But the seller swore an oath to fill it with rice after the harvest for free. It was an analogue of today's futures, with the only difference being that instead of a written contract, there was a seller's basket.
Gradually, the commodity derivatives market began to yield to the financial derivatives market in terms of activity. Today, the entire civilized world trades not in the commodity itself, but in contracts for its supply. The main economic function of derivative securities is to provide economic entities with a hedging mechanism, i.e. insurance against price changes in the capital market.
Derivatives are often used to make money on a movement (even a small one) in the value of an asset. As a rule, this goal is for speculators - stock market players focused on a short investment period.
The second purpose of derivatives is to hedge against the risks of an increase or decrease in the value of an asset. Hedging, in the broadest sense, is a way of insuring an asset against unwanted market trends, which consists in the fact that you buy the opportunity to sell (or buy) an asset in the future on pre-agreed terms. It comes from the English hedge - "protection, insurance".
Binance derivatives are a common type of income.
How to trade Binance derivatives?
An important argument is the fact that Binance cryptocurrency derivatives trading does not have any hidden fees.
Of course, before proceeding to one or another trading method, you need to register on the service, pass verification in order to gain access to all the products and functionality of the crypto exchange. Additionally, secure your account by enabling 2F authentication. Top up your balance with any cryptocurrency or fiat supported by Binance - a direct transfer from your personal wallet to the platform account when it comes to digital assets. Or deposit funds through cards, popular payment systems, if replenishment is carried out in a traditional currency. Having authorized the account, the trader will see (the top line of the monitor) Binance offers. Also in the top line of the personal account menu, next to the "Trading" section, there is the "Derivatives" section, which includes, among other offers, trading with pending contracts - futures.
Classic: cryptocurrency trading
Highly recommended to all digital finance and investment newbies as it does not require deep knowledge. We go from the account to the "Classic" tab through the "Trading" section. Then we proceed as follows:
- In the center of the monitor is the window of the basic version of the trading terminal.
- In the upper right side of the screen, select the market where we plan to profitably speculate.
- In the same zone, but below, we determine the trading pair.
- The queue for analysis - we study an online chart that displays the volatility of the selected cryptocurrency bundle for at least a few days. The required time frame can be set in the terminal functions. We also examine the history of transactions (to the right under the choice of currency pairs) and the Depth of Market - to the left of the trading terminal. The collected information will help you enter the auction in the most profitable way.
- We proceed to the selection and execution of an order. Binance offers 3 order options - market, limit, stop limit. The first contract allows you to make an instant transaction at the current market price. The disadvantage is slippage. Therefore, it is advisable to dwell on the second option - the limit. This type of order allows you to set your own price for buying / selling a crypto asset - when the trend breaks through the set level, the contract will work and funds will be credited to the trader's account. The stop limit is identical to the previous type, but with one important addition - a regulatory price level can be introduced into the contract, which protects against large losses in the event of a deep correction of the exchange rate, which is not uncommon for the cryptocurrency market.
In the final, we click to buy or sell BTC. After the execution, we repeat the procedure - the high volatility of digital assets allows you to make a lot of transactions within one day session, increasing the profit of the trader.Based on the above information, we can conclude that Binance derivatives trading does not take much time.
How to register?
A pleasant advantage of the company is a quick registration. To join the users of the site, you need to do the following:
- Go to the official website of the exchange and click on the "Register" button.
- Enter your email address and choose a strong password. If you wish, you can register using your mobile phone number. Enter your referral code if you have one.
- Follow the instructions to verify your account using the code sent to the email address or mobile phone number that was previously provided.
- After verification, you can already set up your Binance account.
Congratulations!!! Now you can start buying cryptocurrency.
How to withdraw fiat currency from Binance?
The withdrawal of fiat currency takes a minimum amount of time and the step-by-step instructions are written below:
- Sign in to your Binance account. Once logged in, hover over "Wallet" and click on "Fiat & Spot".
- Click Output.
- Select the "Fiat" tab.
- Select the desired fiat currency and withdrawal method. Binance supports credit cards, debit cards, wire transfers, and internal transfers to Binance user addresses.
Methods may differ depending on the selected currency:
- Enter the required information and follow the instructions.
- Enter the code to confirm the withdrawal of funds.
The funds have been withdrawn.
List of Binance derivatives
Binance derivatives are becoming more popular every year.
Futures contracts are an integral part of the traditional financial system. These complex financial instruments are intended primarily for advanced and experienced investors. Investors, corporations, and governments use derivatives, including futures contracts, to protect against risk and asset price volatility.
Traditionally, derivatives are used in the markets for commodities, currencies, stocks or bonds. Contracts are traded on the exchange or without its participation.
The futures market in the crypto industry is a fast-growing sector, generating trillions of volumes every month. Like stock options or commodity futures, cryptocurrency futures provide protection against volatility and adverse fluctuations in cryptocurrency prices. In addition, this tool allows traders to speculate on the future price of the cryptocurrency. It can also be used to hedge cryptocurrency price changes.
Binance crypto futures have many benefits such as:
- Flexibility: futures allow you to speculate on the price of a cryptocurrency and make a profit in a short time without buying an asset. You can open a position on a crypto futures contract in USDT; the resulting profit will also be calculated in USDT.
- Liquidity: The cryptocurrency futures market is extremely liquid, with trading volume in the trillions. The risks in a liquid market are lower, traders can easily open and close positions with minimal risk of slippage.
- Leverage: Gain access to a specific asset for a fraction of its value. Leverage allows you to amplify minor price fluctuations and make a profit that pays for your time and effort.
- Portfolio diversification: use various trading strategies to increase profits. You can also develop complex trading strategies such as short selling, arbitrage, pair trading, etc.
Binance Crypto futures may be the first experience for someone in this area.
Binance Options are US-style options that can be exercised at any time up to the expiration date. Binance options are cash settled and therefore do not require physical delivery. Unlike traditional options, Binance options have shorter expiration times ranging from 5 minutes to 1 day. Binance options have only one strike price, which is equivalent to the contract price on Binance Futures. In other words, Binance options are always in the money. A user can only be a buyer of Binance options, as the exchange is the sole issuer (option seller). Therefore, there is no order book for Binance Options. The maximum loss for the client, as for the option buyer, is equal to the premium paid by the client. In this case, the breakeven point is the strike price +/- premium (depending on whether the contract is a call or a put).
Margin trading is a method of trading assets using funds provided by a third party. Compared to regular trading accounts, margin accounts allow traders to access large amounts of capital through leverage. Essentially, margin trading amplifies trading results so that traders can profit more from successful trades. This ability to increase trading results makes margin trading especially popular in low volatility markets, in particular the international Forex market. However, margin trading is also used in the stock, commodity and cryptocurrency markets. In traditional markets, leveraged funds are usually provided by an investment broker. However, in cryptocurrency trading, funds are often provided by other traders who earn interest based on market demand for margin capital. Some cryptocurrency exchanges also provide margin funds to their users, although this is less common.
Binance Leveraged Tokens are tradable assets on the Binance spot market that provide users with the ability to access the underlying asset, but with leverage. Each leveraged token is a “basket” of perpetual contract positions. The price of tokens depends on changes in the notional amount of positions in perpetual contracts and changes in leverage ratios. Unlike margin trading, leveraged tokens allow you to access leveraged positions without the need to provide collateral and maintain a maintenance margin level. No need to worry about liquidation risks. However, while liquidation risks are minimal, there are risks associated with leveraged token positions, such as the impact of price fluctuations in the perpetual contract market, premiums, and funding rates.
Binance crypto futures trading is available to absolutely any user and with any trading experience.
The Binance team is regularly in search of new solutions and develops projects that are of interest not only to the cryptocurrency community, but also to people far from it. It is also worth noting that the interface of the exchange is not much different from its competitors: everything is done simply, conveniently and, if possible, intuitively. For beginners who have never traded on any exchanges, a few minutes will be enough to understand the most necessary aspects.Summing up, we can say with confidence that Binance derivatives trading platform occupies a leading position in the market for a reason. It is convenient, fast, reliable and multifunctional. Its ecosystem is actively growing and allows you to fully interact with the cryptocurrency market. Competitors will have to work hard to not only surpass Binance, but also stay afloat in the same sea with it.