Ever tried Binance futures trading?, here are some things you need to know!

I was fortunate to have a brief encounter with a friend of mine a few days ago. He came over to have his mobile phone fixed and in the advent of that, we had a little chat.

I wanted to know what he was doing that's afforded him the luxury of being able to own such an expensive smartphone in the first place.

I have known him for quite some time now and he was one of the kind people that pointed me in hive direction.

He said he got the money through futures trading on Binance. I have always heard of futures trading from Binance but I have never sat down to study the market.

He said people charge a minimum of $200 for the free lecture he was going to give me. He mentioned the name of one person that charges people that amount and the person never actually trade himself.

Well, that will be a story for another day. What and what were the key features of Binance future trading that he pointed me to.

Before I get started, what is Binance futures?

Just like the name implies, predicting/forecasting the future value of a Coin. The prediction could either be about a coin dumping or moon and the key important note to take from this is that, you have to be the one to terminate the contract entered (contracts are the predictions made).

This is majorly what Binance futures are all about, but what makes it so enticing are the features attached to it. To get started, move USDT to your Binance futures account on the Binance app.

Using the above image, I will explain key features of the Binance future that I know for now [I am still learning too]

The purple rectangle shows the coin you want to trade or you are trading against USDT at the moment. If you click on it, a drop-down of all tradeable coin comes down. It always looks like this;

The yellow rectangle currently shows isolated. The option provided is to select the margin mode for the contract selected.

The margin mode options showed were
Cross margin or isolated margin.
Cross margin. My understanding of what these margins are is that for the isolated margin, In a case whereby the price of a coin has reached the value where it's supposed to be liquidated, it will be liquidated without affecting other coins at hand. The isolated margin restricts the trading to just the one entered.

While the cross margin seems a lot tougher to explain but know this, you can lose all your money in the future trading if a coin value keeps decreasing while cross margin is been selected.

That won't happen with isolated as you the money you can lose is the money you enter to trade with. For cross margin, once a trade nears liquidation value, instead of losing your money, the option automatically allows funds of other coin or money not being used to be diverted into the trade

Leverage

From the first Image, the green rectangle box shows 5× and that's the most important feature in the Binance fixture trading. The box is simply known as the leverage box and it gives traders an option to leverage on a coin between the range of 1% to 125%. The higher the leverage selected the higher the risk

The job of leverage is just to help multiply the amount a trader is going into a market with. Let's say a trader wants to trade with 10 USDT, if he selects a 100% leverage, it will mean that he will trade with 1000 USDT.

A lot remains to be learned under Binance futures trading but with this key once highlight above, you can start your trading journey.

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Will you be starting your Binance futures trading today?

All images were screenshot from my personal Binance account on the mobile application

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