Now that we’ve covered some of the basics, let’s dive into Bitcoin futures on Binance and how to trade them. In this article, we will focus on one of the most popular crypto trading investments on Binance and the wider crypto trading world: Binance Futures. Without a doubt, Binance Futures is one of the best options for trading crypto derivatives.
Trading on Binance Futures is very similar to the Binance platform, with some notable exceptions. A futures exchange must be a platform where futures contracts are traded and sealed. Exchange traders transfer funds to each other based on their open positions, and the price difference between the perpetual contract value and the value of the underlying cryptocurrency determines which trader gets paid.
Futures allow counterparties to trade at the expected future price of an asset. There is no physical exchange of bitcoins in the transaction. Therefore, trading Bitcoin futures removes the risk of owning a volatile asset class with significant price movements. For those not familiar with it, its futures trading offer allows clients to use their trades up to 20 times. Binance recently launched a futures trading platform, Binance Futures, which allows traders to use leverage and open both short and long positions.
Margin trading, or leveraged trading, is a feature offered by Binance Futures that allows traders to use a certain number of traders to add to their positions. Malta-based Binance, for example, offered traders leverage of up to 125% of the traded value when it first launched cryptocurrency futures trading opportunities. For example, you can use stablecoins like Tether or Bitcoin as margin for your trades on Binance Malta. Binance only allows you to trade Bitcoin/USD with up to 125x leverage, and up to 75x for other cryptocurrencies.
The problem with Bitmex is that unlike other cryptocurrency exchanges, the exchange focuses primarily on cryptocurrencies, derivatives trading such as futures, and margin trading. The changing of the guard on cryptocurrency exchanges has now seen Binance Futures lead the way due to its rapid growth as a bitcoin-to-bitcoin derivatives trading platform. As Cointelegraph reported earlier this week, leading cryptocurrency exchange Binance recently overtook BitMEX to become the second-largest platform in terms of 24-hour Bitcoin (BTC) futures trading volume. Regulators, including the UK, Germany, Hong Kong and Italy, are concerned about consumer demand. Anti-money laundering protections and standards for cryptocurrency exchanges have increased pressure on Binance, one of the largest cryptocurrency exchanges in the world by trading volume.
Large Binance users in Germany, Italy and the Netherlands will not be able to open new futures or derivatives accounts immediately, the exchange said in a statement on its website. Binance has officially suspended derivatives and futures offerings in Europe, starting with Germany, Italy and the Netherlands. Crypto giant Binance will stop offering its futures trading products starting Friday, citing a desire to comply with local regulations. The announcement comes on the heels of Binance’s recent removal of high-leverage trading products from Binance’s offerings and seemingly relentless scrutiny and oversight from regulators around the world.
Despite recent attempts by CEO Changpeng Zhao (CZ) to appease regulators, Binance has been forced to delist certain margin trading pairs and cease trading and support of stock tokens such as Tesla and Coinbase. Despite Binance’s recent regulatory issues, CEO Changpeng Zhao remains optimistic about Binance’s future. As of July 14, the exchange has allocated 10% of all transaction fees to a so-called SAFU fund to provide users with additional protection in extreme cases. New Binance users can sign up using the referral code to receive the Binance Futures referral bonus and exclusive discounts. You must have heard of Binance at least once because Binance is the largest cryptocurrency exchange in the world.
You can also share the referral code with your friends and earn 20% commission on each referral. The Binance Futures referral code is 77280703 with low transaction fees, allowing you to save 10% on transaction fees. Binance VIP members also offer a variety of exclusive membership benefits and discounts on transaction fees. So, like anything related to the Binance Futures referral code (77280703), users can easily create an account on Binance and get refunds and discounts on transaction fees. You can also use funds in your exchange wallet as collateral and borrow USDT for futures trading on the balance page of your futures portfolio. Make sure to keep an eye on margin ratios to avoid liquidation. By clicking “Transfer”, you can transfer money between your futures wallet and the rest of the platform ecosystem.
If you liquidate in cross margin trading mode, you may lose your entire Binance Futures account balance as well as all open positions. With contract trading, you can trade crypto derivatives with up to 100x leverage. When trading derivatives, you can hedge, speculate, or use leverage between perpetual and futures contract types. As a single BTC trading account, it can be used to trade perpetual and futures contracts.
With spot trading, you can trade over 53 cryptocurrency pairs such as BTC, ETH and more with zero transaction fees. With Phemex, you can enjoy both spot and contract trading. While Cboe stopped trading bitcoin futures at Cboe headquarters, CME doubled down on cryptocurrencies and launched other derivatives related to them. Inexperienced traders should carefully consider the amount of leverage they use. To avoid unnecessary spikes and liquidations during times of high volatility, Binance Futures uses last and mark prices. The final price is easy to understand.