Binance Futures is one of the leading futures crypto platforms with 20x leverage (previously it was 100x). Trade is an art, and every crypto trader starts their crypto dealing journey with spot trading. However, when they grow their skills as a trader, they can maximize gains and minimize risks using some innovative strategies. Although for long-term, spot market is good, but you can go with futures trading when you want to short sell an asset or use increased leverage in a trade.
Futures are the type of derivative trading and these are the regulated contracts between two parties involving an agreement to buy or sell any underlying asset. Futures Trading allows traders to hedge against volatile markets and make sure that they buy or sell an asset at a set price in the future. And, if the price moves in the opposite direction, they may end up paying more than the market price or selling it at a loss.
In some cases, instead of actually buying or selling, future contracts allow traders to gain exposure indirectly to any cryptocurrency and potentially profit from the price movements.
Why should one consider Binance futures?
The spot market allows traders to buy or sell the crypto deal assets at anytime, but with certain defined limitations. And in this kind of trading, the traders have to even hold the assets for a while before taking out profits.
But when we talk about futures trading, this kind of dealing allows traders to diversify their portfolios and increase their exposure to a variety of cryptocurrencies without even having to hold the underlying asset. Making use of leverage on the crypto derivative dealing allows them for better capital efficiency. Moreover, short-selling gives them a better chance to earn profits even if the price of an asset drops.
Binance Futures is the most liquid derivates exchange in the crypto market that provides the user with the best offers to help them avoid unnecessary risks. Leverage trade at Binance Futures platform allows the traders to open positions which are bigger than their crypto assets capital. If you can open a position which is 50 times bigger than their capital, then you have 50x available for you to make trades.
Gain access to a wide range of features
Binance Futures trading allows its traders to access a wide range of features including advanced order types, Binance trading bots, grid trading, etc. that further ensure a seamless trade experience. When we talk about advanced orders, it's quite beneficial. Like, if a trader places a limit order, then take profit and stop-loss can be placed simultaneously. This enables traders to set a primary order and secondary order at the same time, with the former being a limit order and the latter being a stop loss and take profit order.
This amazing technology and features allow traders to plan their strategies accordingly ahead of time. This improves consistency and also manages the risks properly at the same time.
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