Binance crypto futures
What is Binance?
It often happens that competitors put in effort for years, competing for a place at the top, but a newcomer appears and easily outpaces the veterans. The fate of commercial projects largely depends on the ability of the creators to correctly determine the priority area of activity.
Today, the Binance exchange is one of the market leaders in terms of liquidity, offering users a large selection of trading pairs. In addition to standard exchange speculation, Binance has tools for margin and futures trading.
In general, this exchange appeared in 2017. The company was founded in China but later moved to Taiwan. As of January 2018, the site has become the largest in the industry with a capitalization of more than 1.3 billion USD.
With the tightening of legislation in Japan and China, the management of the site was forced to look for other options. Malta and Bermuda were considered. In 2019, a separate project appeared - Binance Jersey, which, among other things, offered trading in fiat currencies for the euro and the US dollar. Now the exchange offers relatively low trading fees and a large selection of cryptocurrencies for trading around the world.
Binance derivatives trading platform has such advantages in work as:
- The platform offers low commission fees, which means that traders can keep the majority of their investments and earnings.
- Wide Variety of Trading Options and Order Types: Binance offers multiple trading options.
From the desktop or mobile dashboard, Binance offers a wide range of trading options, including an impressive selection of market charts and hundreds of cryptocurrencies. Users also have access to a variety of trading options, including futures and options, as well as multiple order types. Traders can also use the Binance platform to access their portfolios and trading history, as well as view the order book and price charts.
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What are derivatives?
Derivatives appeared in the 17th century as insurance against crop losses. Contracts for the supply then began to be concluded in advance, and not upon the fact of grown products. Thus, sellers knew the volume of demand, and buyers could be sure that there would be no shortage in the market. Since then, the derivatives market has many times exceeded the market for real goods in volume.
A derivative is a derivative financial instrument, a "superstructure" over an asset.
The derivative allows not to acquire the asset itself, but to work only with a contract for its acquisition.
Derivatives are often used to make money on a movement (even a small one) in the value of an asset. As a rule, this goal is for speculators - traders focused on a short investment period. Price difference speculation is one of the ways to make a profit by buying and selling various financial instruments. Everything is extremely simple here: you buy cheaper, sell more expensive, put the profit in your pocket or put into circulation.
The second task of derivatives is to hedge (protect) against the risks of an increase or decrease in the value of an asset.
Hedging is a tool that every investor should be familiar with.
This is one way to protect yourself from unnecessary market risks. It works on a simple principle:
- The investor receives a guarantee that the price of the asset will be maintained in case the market situation changes.
- The investor agrees that if the market grows, he will receive less than the maximum profit.
One of the hedging participants acquires the opportunity to buy or sell an asset in the future under conditions that are agreed in advance.
Binance derivatives are the favorites for many traders in trading.
How does cryptocurrency derivatives trading work?
Binance derivatives trading can be the first trading experience for young traders.
Trade is a fundamental concept in economics that involves the buying and selling of valuables. These may be goods and services for which the buyer pays the seller some compensation. In other cases, trade may involve the exchange of goods and services between parties to a transaction.
A derivative is worth nothing on its own, its price depends entirely on the value of the underlying asset. The Binance platform supports the following derivatives.
Perpetual futures contracts do not have a specific closing date. Transactions are concluded based on the underlying asset value index, which is derived based on the average price of a crypto coin and sales volume. Therefore, the cost of perpetual futures is often comparable to the market value of the cryptocurrency.
Tokens with credit can be "portfolios" filled with perpetual futures. They allow the trader to operate without collateral and margin support without worrying about the risk of liquidation.
Binance derivatives in Kenya is acquired by a large number of users of this exchange.
How to Trade Binance Derivatives in Kenya?
Binance crypto futures trading is an exciting and educational process that does not take much time.
So, let's start trading. You need to click on the “Trade” button and select the mode of operation. Before trading on Binance, you need to decide on a trading pair. . If you are new to cryptocurrency trading and don't know how to sell on Binance, use the Market order. Applications of this type are executed immediately after creation, at the current price of the cryptocurrency on the site. The basic trading mode and the OTC mode have a very simple interface that even a beginner can easily figure out. On the P2P site, you need to select a currency, specify a payment method, and select a suitable ad. The main trading, including leverage, takes place in the classic and advanced modes. The basic trading mode has a very simple interface that even a beginner can easily understand.
To get started:
- Hover your mouse over the "Trade" button.
- Select the "Basic" section from the drop-down menu.
A window with two columns will pop up in front of you. In the first one, you need to select from the list of available coins the one you want to sell and enter the amount. And at the bottom, indicate the cryptocurrency you want to buy. The system will calculate how many tokens you will receive. If you are satisfied with the result, carry out the operation and the money will be credited to the account.
Binance cryptocurrency derivatives trading is completely transparent.
How to replenish the deposit?
Replenishment of the Binance wallet with a classic bank card is possible directly. This option is considered rare even for large exchanges. Fortunately, this option is available for Binance users. Let's consider a way to deposit money on Binance - replenishment from a card. Depending on the choice of currency, the user will be familiarized with the recommended deposit methods with the lowest commission percentage.
After you select the currency and payment method with a bank card, you will need to enter the replenishment amount, card details and click on the "Continue" button, the interface of the Binance exchange is intuitive even for a new user, it remains to fill in all the proposed fields, after which the balance will be replenished.
If you decide to deposit money on Binance using a debit / credit card, then depending on the choice of currency, the system will show which coins are available for purchase.
List of Binance derivatives
Binance crypto futures are in high demand.
Being a more complex product, futures also require a deeper understanding of how they work in order to trade safely and consciously. The advantage of futures is that they allow you to fix prices through hedging and profit from market downturns through shorting. Two parties agree to buy or sell a fixed amount of bitcoins at a certain price on a certain date. Typically, traders use futures contracts for speculation, but they can also be used for hedging. Hedging is especially popular among miners who need to cover operating costs.
Futures are a great way to diversify your portfolio, trade with leverage, and ensure your future income is relatively stable. One of the main use cases for bitcoin futures for both buyers and sellers is to fix future prices with them. This process is known as hedging. In commodities markets, where manufacturers needed stable profits to cover their costs, futures have traditionally been used as a hedging tool.
Binance crypto futures in Kenya available for purchase today!
Binance Leveraged Tokens are tradable assets on the Binance spot market that provide users with the ability to access the underlying asset, but with leverage.
Each leveraged token is a “basket” of perpetual contract positions. The price of tokens depends on changes in the notional amount of positions in perpetual contracts and changes in leverage ratios. Unlike margin trading, leveraged tokens allow you to access leveraged positions without the need to provide collateral and maintain a maintenance margin level. There is also no need to worry about liquidation risks. The true level of target leverage is constantly changing and its value is not disclosed. The target leverage of the rebalancing is not available to observers or algorithms and is not predictable, which reduces the risks of front running. The actual leverage ratio changes with the ratio of the futures position (nominal value) to the amount of coverage.
However, while liquidation risks are minimal, there are risks associated with leveraged token positions, such as the impact of price fluctuations in the perpetual contract market, premiums, and funding rates.
Binance Options are US-style options that can be exercised at any time up to the expiration date.
Binance options are cash settled and therefore do not require physical delivery.
Unlike traditional options, Binance options have shorter expiration times ranging from 5 minutes to 1 day. Binance options have only one strike price, which is equivalent to the contract price on Binance Futures. In other words, Binance options are always in the money.
There is no order book for Binance Options. The maximum loss for an option buyer is equal to the premium paid. In this case, the breakeven point is the strike price +/- premium (depending on whether the contract is a call or a put). All trades are executed at the market price.
COIN-margined contracts are perpetual and deliverable futures settled in cryptocurrency.
The calculation of the maintenance margin is carried out through the "Tax Scale". This means that the maintenance margin is always calculated in the same way - regardless of the leverage chosen by the trader. Moving from one category to another will not change the leverage of the previous category. To reiterate, it is highly recommended to liquidate positions before the collateral drops below the maintenance margin level to avoid automatic liquidation. The maintenance margin is calculated through the "Tax Scale". This means that the maintenance margin is always calculated in the same way - regardless of the leverage chosen by the trader. Moving from one category to another will not change the leverage of the previous category. it is highly recommended to liquidate positions before the collateral falls below the maintenance margin level to avoid automatic liquidation.
USDT-margined futures contracts are not inverse. These are linear futures products that are quoted and settled in BUSD or USDT, stablecoins pegged to the US dollar.
One of the main advantages of contracts settled in USD is that the user can easily calculate the yield in fiat. This makes USDⓈ-margined contracts intuitive. The minimum face value for each order must be at least the 5 USDT threshold. If the nominal value of the order is less than the threshold value (5 USDT), the order will be rejected.
Binance provides high leverage trading through the implementation of a maintenance margin model using state-of-the-art risk control and liquidation systems.
Binance Futures has a leverage limit for users with futures accounts that are less than 60 days old.
It often happens that competitors put in effort for years, competing for a place at the top, but a newcomer appears and easily outpaces the veterans. The fate of commercial projects largely depends on the ability of the creators to correctly determine the priority area of activity.Overall, Binance cryptocurrency derivatives trading platform offers a wide range of supported assets and trading options for global traders, and its fees are among the lowest in the industry.