Binance Futures test answers and more.
Binance Futures test answers
When opening your Binance Futures account, you may need to complete a risk test. When you mark the options and complete the test, it is shown which options are correct.
In this way, after seeing the right options, you can correct your wrong answers and open your futures account.
In short, nothing happens if you answer the test incorrectly. The important thing is to mark the right options and complete the test.
When opening your futures account, you can enter “10 discount” in the code section. This way, you will earn 10% commission discount for futures.
Binance Futures closing a position
You can enter a price by clicking the limit option from the “close position” section to determine the price you want the transaction to close.
You can click on the market to close the position instantly. In this way, the order will be closed at the market price.
If you close the position with the market option, you will pay twice the commission. (0.04% instead of 0.02%). You can enter a market maker price to pay less commission.
What is Binance PNL?
Another topic you need to know when trading futures on Binance, or Futures, is PNL.
When you open any long or short position on Binance, you can see the continuously changing PNL (ROE) information in green or red where the information about your position is.
PNL is an indicator showing your profit and loss. In the PNL section of Binance, you can see your profit and loss status both in terms of quantity and percentage according to instant price changes.
What is Binance ADL?
When trading futures, your position may close before you close it due to ADL (auto-deleveraging).
In this case, the position is not liquid, only your current profit or loss is realized and your position is closed at the time of ADL.
When there are very large price fluctuations in the market up or down and the insurance fund used for futures transactions cannot cover the loss, especially highly leveraged positions can be closed automatically.
In such a situation, ADL first starts to close from the highest leveraged positions. The ADL indicator shows your risk.
If you are not using very high leverage such as 50x, 100x, you do not have to worry about this. Also, the probability of having ADL on Binance is much lower compared to other exchanges.
Binance Futures take profit / stop loss orders
In addition, as you can see in the image below, with the newly added feature to the Binance Futures platform, you can take profit (take profit) and put a stop loss price when opening any position.
However, if you want to determine the trigger price and quantity, you must place an order with the stop limit option after opening a position.
You can find more detailed information on the use of stop loss below.
What is the Binance Futures hedge mode?
One of the new features in Binance futures is the hedge mode. You can change the normally “one-way mode” to hedge mode in the “Position Mode” section.
Thanks to the hedge mode in futures transactions, you will be able to open both long and short positions in a trading pair at the same time.
To be able to change your position mode, you must not have an open position or trade order.
As you can see, doing leveraged transactions on Binance is basically simple. However, it can be complicated at the first stage and this is quite normal.
Therefore, it would be better for you to start with a low amount and trade with low leverage rates.
In this way, you can observe how the transactions are carried out in general without taking too much risk and then you can start trading with high amounts.
Another thing you need to know to make leveraged Bitcoin transactions is the use of stop loss.
What is Binance COIN-M Futures?
In addition to the transactions you will make in the USDⓈ-M section on Binance, you can also trade in the COIN-M futures section. You do not need USDT for your transactions here.
In the Coin-M futures section, the trading pairs are BTC / USD, ETH / USD. If you are using Bitcoin, Ethereum and other cryptocurrencies to open positions, according to the pair you are trading.
There are not many altcoins on the Coin-M part compared to USDⓈ-M. When you trade here, the gain and loss arise directly from the crypto currency you are trading.
Likewise, commission and funding are cut on the basis of the crypto currency you are trading.
In the USDⓈ-M futures section, since the transactions are made with USDT, there are many different altcoins that are both more understandable.
However, instead of converting your crypto coins to USDT, especially in the bull market, that is, when the market is up, you can open a long position directly on COIN-M pairs.
For example, if you do not want to deal with USDT when the market is up, you can open a position directly on the ETH / USD pair. In this case, your earnings will be directly on ETH basis.
Compared to USDT pairs, when you close the position, you do not need to convert the principal + gain back to ETH on a USDT basis. In COIN-M pairs, your main money and earnings will be on ETH basis.
With the same logic, let’s say you are in a bear market and the market is down. In such a case, it is more advantageous to keep stablecoins such as USDT as cryptocurrencies lose value.
You can open short positions directly with the USDT you hold in your hand. In this way, it is more advantageous to open short in USDT pairs directly without dealing with losing cryptocurrencies.
If we evaluate it in terms of gain / loss in general, nothing that matters. You can open positions on both USDs-M and COIN-M pairs. This is only up to you.
Binance 10x ne demek?
In Binance, you can see expressions such as 3x, 5x and 10x next to crypto coins in the normal trading (spot) section.
This expression means that you can margin trading these cryptocurrencies with 5x, 10x leverage, cross or isolated.
Margin trading can be a little more complex than futures and also more restricted. Instead, you can directly use the futures section to trade with leverage.
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