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What are the benefits from trading futures contracts on Binance and what is the process?

Binance Futures, one of the most popular platforms for futures for crypto currencies, provides 20x leverage. (Previously it was 100x). Trade is an art, and every trader in crypto begins their journey in the field of crypto by trading spot. As they advance their trader skills, they can maximize gains and decrease risk using new strategies. While spot trading is beneficial in the long run but futures trading could be employed to short sell an asset or increase leverage.

Futures are a type of derivative trading and these are contracts that are regulated between two parties, which include the agreement to buy or sell any underlying asset. Futures trading is a method to help traders protect themselves from the volatility of markets and to ensure that they are able to purchase or sell assets at a certain price in the near future. If the price moves in the opposite direction, traders may end up paying an amount higher than market value or selling the asset at the loss.

In some cases instead of actually buying or selling, future contracts permit traders to be exposed indirectly to any cryptocurrency and potentially earn money from price fluctuations.

Why would anyone think about considering Binance Futures?

The spot market allows traders to buy or sell cryptocurrency at any time subject to certain restrictions. In this type of trading traders are required to keep assets for a certain amount of time before they can make a profit.

When we think of futures trading, this type of deal permits traders to diversify their portfolios as well as increase their exposure to a variety of crypto currencies without having to hold the underlying asset. Utilizing leverage in the crypto derivative market permits them to achieve greater capital efficiency. Short-selling also offers investors the opportunity to earn profit even when an asset’s value decreases.

Binance Futures, the most liquid derivatives exchange in the crypto market, provides the best deals to users in order to avoid unnecessary risk. The leverage trade offered by the Binance Futures platform allows the traders to open positions which exceed their crypto assets capital. If you’re able to open a position which is 50 times greater than their capital you have 50x available for you to make trades.

Access a wide range of features

Binance Futures trading allows its traders to use a broad array of features, such as advanced orders, trading bots, grid trading and more. which further enhance the trading experience. If we are talking about advanced orders, it’s extremely advantageous. If a trader makes a limit-order, then a stop-loss or take profit can be made at the same time. This permits traders to place an initial and a secondary order simultaneously in which the first is a limit order and the second being a stop loss as well as a take profit order.

This incredible technology and features allows traders to design their strategies according to time. This increases consistency while also taking care of the risks in a timely manner.

You need to open the Binance Futures Account before you can trade futures. This is done via the Binance App or on the Binance Website. You can sign up here by entering your email ID as well as accepting the terms and conditions as well as following the directions. After registration, you will be allowed to participate in margin trading or leveraged trading Binance Futures.

Grid Trading and Binance Trading Bots

Grid trading is a valuable feature of Binance which can assist traders to streamline the crypto trading process that is used to trade futures contracts. You can place as many buy or sell orders as you like and realize the profits within the specified price range. Grid trading occurs when orders are placed over and below the specified price and create a grid of transactions at decreasing and increasing prices.

You may want to consider using a third-party trading platform such as TrailingCrypto or CryptoHopper when you’re a novice trader that doesn’t have a lot of experience in grid trading. These platforms help you trade more easily. Grid-based trading bots in the Futures Market are more suitable for those traders who prefer continuous trading.

If you opt for a third-party platform, you can automate your workflow through the use of Binance trading bots. The futures trading bots on Binance allows traders to divide their funds into smaller chunks/grids and then purchase the asset at regular intervals. Apart from this you can also create an individual strategy by connecting your account on third-party terminals to the Binance Futures platform.