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Reasons to Consider Trading Futures


Main Takeaway:

  • Futures trading is one of the preferred instruments among experienced traders.

  • Market-neutral strategies can be implemented to profit from either direction of the market.

  • With Binance Futures, buying and selling crypto derivatives has never been easier.  

Cryptocurrencies are well-known for how volatile they can be. While the significant price fluctuations in the market can turn some people away, most traders see volatility as the secret to making significant gains.

Futures traders have the unique opportunity to make profits regardless of the market's direction. Not only can price increases boost their portfolios, but when the market goes red, futures traders can go short. That said, there can be significant risks associated with futures trading.

These features and more have made futures trading the preferred option for cryptocurrency enthusiasts worldwide. So let’s take a closer look and explore why you should get involved! 

A New Realm of Trading Possibilities

Futures trading is one of the best options for anyone who loves cryptocurrencies. Derivatives contracts represent the value of a specific asset that traders can buy or sell at a predetermined price at a specified time in the future. 

Many traders use futures trading as a hedge against spot markets. Derivatives contracts can be sold high and bought low to capitalize the price difference, making market-neutral trading strategies possible. With futures trading, there is no need to worry about cryptos being bullish, bearish or stagnant because of the big gains that can be made from small fluctuations. 

The ability to use borrowed funds, or leverage, increases the potential profitability of a trade. A trader with an account balance of $100 could use 10x leverage and borrow $900 to enter a long or short position worth $1,000. If the trade goes in his favor, a 10% price change could help double the initial balance on the account within a very short period. 

This is why liquidity plays such a crucial role in futures trading. The higher the leverage used, the higher the need to fill buy and sell orders without slippage

The King of Crypto Derivatives

Binance Futures has grown to become the most liquid derivatives exchange in the market. It provides users with the tightest bid/offer spread to help them avoid unnecessary risks. The vast selection of trading pairs and enormous trading volumes make Binance Futures the preferred crypto derivatives exchange for more than 28.6 million active traders. 

Even inexperienced traders are taking advance of Binance Futures to sharpen their skills. It offers a dedicated mock trading environment for users to learn how to trade at their own pace with zero risks. Anyone can practice in real-time trading live cryptocurrency markets without losing any capital. 

So if you haven’t done so yet, sign up for Binance Futures today and benefit from the volatility in the cryptocurrency market!

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