Four Tools to Trade Crypto Like a Pro on Binance Futures
Main Takeaway:
Binance Futures has introduced four new tools: Grid Trading, TWAP, Advanced TP/SL, and the Multi-Symbols Trading Page.
These enterprise-grade and easy-to-use features are designed to make trading more efficient for all users.
Professional traders often leverage advanced tools to succeed in the volatile cryptocurrency market.
Binance Futures strives to equip traders with the right tools to help them succeed. We continue building institutional-grade products and services that aim to make cryptocurrency trading easy regardless of market conditions.
With all the excitement around cryptocurrencies, staying focused and following your trading plan may be challenging. But to become a successful trader, you must clearly understand the associated risks. It also helps to have access to the most advanced financial tools that can help you stay ahead of the curve.
Binance Futures offers a wide range of products and services to help you take the bull by the horns. In this guide, we’ll explore new features like Grid Trading, Time-Weighted Average Price (TWAP), Advanced TP/SL, and the Multi-Symbol Trading Page so you can start trading like a pro.
Grid Trading
Binance Futures has designed a user-friendly strategic trading tool called Grid Trading. It enables the automatic execution of buy and sell orders within a preset price range at preset intervals.
Grid Trading works best under volatile and stagnant market conditions, when the price of a given cryptocurrency moves between predefined levels. Even in the lower time frames, this automatic trading tool can increase your chances of buying low and selling high.
For example, under arithmetic or geometric Grid Trading strategies, buy/long orders are automatically executed when BTCBUSD drops, and sell/short orders are automatically placed at a higher price. The same can be applied in a downward trend so that when ETHBUSD surges, sell/short orders are automatically executed, and buy/long orders are automatically placed at a lower price to profit from the difference.
With Grid Trading, you don't need to forecast the direction of the trend. All you need to do is determine a reasonable price range in a time frame to ensure that your strategy generates positive returns.
We provide a set of pre-built parameters to help beginners take advantage of Grid Trading. These parameters include lower price limit, upper price limit, and grid count. Go to Binance Futures’ Strategy Trading and try it now!
Time-Weighted Average Price (TWAP)
Time-Weighted Average Price (TWAP) is another algorithmic trading execution tool that Binance Futures offers to all regular and VIP users. It allows traders to automatically disperse a larger order into smaller ones to execute them at regular intervals.
One of the most important benefits of implementing a TWAP strategy is minimizing the market impact when the order size is larger than the available liquidity on the order book. Therefore, it aims to execute an order over a pre-determined period so that the average execution price is approximately in line with the time-weighted average price of that period.
For instance, a trader who wants to buy 10,000 BNBBUSD Futures Contracts could set up a TWAP strategy to get the best average execution price and avoid increasing the value of this asset. If the duration was set at 60 minutes and the order count at 20, there would be a three-minute delay between each buy/long order.
High-frequency traders tend to implement TWAP strategies because this algorithm allows them to distribute orders without having their positions known by other traders. Essentially, it enhances any trading strategy and simplifies the decision-making process.
The TWAP strategy trading algorithm is simple to use, and no coding is required to take advantage of this institutional-grade tool. Go to Binance Futures’ Strategy Trading and try it now!
Advanced TP/SL
Binance Futures understands that risk management is crucial to every trader’s success. For this reason, we have built an Advanced Take-Profit and Stop-Loss function that allows you to exercise control over every single one of your trades.
Advanced TP/SL can be considered part of the exit strategy for each trade you make. These orders are set to be executed automatically once prices reach a predetermined level, closing your long or short position at an expected gain or loss.
Traders can now set take-profit and stop-loss orders with a predetermined last price or mark price, or even by entering the percentage gain or loss expected. Advanced TP/SL displays the estimated profit and loss for take-profit and stop-loss orders so you can determine how much risk you want to take for the reward you anticipate.
Advanced TP/SL acts as a free insurance policy for your trading account by placing take-profit and stop-loss orders simultaneously the moment you enter a long or short position. It enhances your risk management strategy by helping you reduce potential losses since the cryptocurrency market is highly volatile.
On Binance Futures, you don't have to worry about exiting a trade or second-guessing your decisions. Set up take-profit and stop-loss orders with Advanced TP/SL and let our trading system execute your orders automatically. Try it now at Binance Futures!
Drag-and-Adjust TP/SL Feature
Binance Futures has introduced a Drag-And-Adjust TP/SL functionality that enables traders to have more flexibility and control over their trades. With this feature, traders can swiftly respond to market changes and dynamically adapt their positions by making precise adjustments to the trigger price of their take profit and stop loss orders.
By simply dragging and adjusting the trigger price, traders can fine-tune their orders to the desired specification. The feature equips traders to have more control over their trades and adapt to changing market conditions.
Look for the Display settings at the top of your trading chart. Among the options that appear, select 'Open Orders.' To modify the trigger price, simply click and drag the position bar to the desired level. As you drag the position bar, the trigger price will adjust accordingly.
Multi-Symbol Trading Page
The Multi-Symbol Trading Page is another essential feature that Binance Futures offers to help traders make the most out of the cryptocurrency market. It gives users the ability to analyze and trade multiple assets under one screen, completely transforming the trading interface.
Given the volatile nature of cryptocurrencies, you may identify different setups for several assets across different time frames. With the Multi-Symbol Trading Page, you can keep track of every asset on your radar to pull the trigger at the right time.
Imagine you are waiting for either BTCBUSD, ETHBUSD, or BNBBUSD to print a four-hour candlestick close above resistance to open a buy/long order. The Multi-Symbol Trading Page allows you to trade up to six symbols on one screen so you don’t miss any trading opportunity.
Professional traders often wait for the setups they have identified to play out before entering a trade. This shows the importance of having the ability to analyze multiple assets simultaneously to time the perfect entry price.
The Multi-Symbol Trading Page can take your trading experience to the next level. You can now monitor multiple cryptocurrencies under one interface and place buy/long or sell/short orders for each asset. Go to Binance Futures’ Multi-Symbols and try it now!
Closing Thoughts
By leveraging Grid Trading, Time-Weighted Average Price (TWAP), Advanced TP/SL, the Drag-and-Adjust TP/SL Feature, and the Multi-Symbol Trading Page, traders can get an edge in the crypto derivatives market. These professional tools are designed to make trading more efficient for all traders. No matter how much experience you have or which type of trader you are, Binance Futures offers a range of products and services that aim to help you succeed.
We have also launched a Chat Room where everyone can share news, strategies, and thoughts on the market while trading. The chat room is free for all Binance Futures users on web and across our desktop client and mobile app.
If you are new to cryptocurrency trading, setting up an account on Binance Futures is easy and will only take a few minutes. You can also use the Mock Trading environment to practice with these four tools and sharpen your trading skills before moving on to live futures trading.
Further Reading
(Blog) Crypto Futures Trading: Things You Need to Know Before You Begin
(Blog) Crypto Futures Risk and Money Management: 5 Things You Can Do to Better Manage Trading Risk
(Academy)The Psychology of Market Cycles
And many more Binance Futures FAQtopics…
Disclaimer: Crypto assets are volatile products with a high risk of losing money quickly. Prices can fluctuate significantly on any given day. Due to these price fluctuations, your holdings may significantly increase or decrease in value at any given moment, which can result in a loss of all the capital you have invested in a transaction.
Therefore, you should not trade or invest money you cannot afford to lose. It is crucial that you fully understand the risks involved before deciding to trade with us in light of your financial resources, level of experience, and risk appetite. If required, you should seek advice from an independent financial advisor. The actual returns and losses experienced by you will vary depending on many factors, including, but not limited to, market behavior, market movement, and your trade size. Past performance is not a guide to future performance. The value of your investments may go up or down. Learn more here.