To invest in the futures market on Binance and make profits, you must follow some basic steps:
First, you must create an account on Binance and verify your identity. You must also fund your account, either in cryptocurrency or in fiat currencies such as the US dollar or euro.
Second, you must choose the type of futures contract you want to trade. Binance offers two types of futures contracts: USDⓈ-M and COIN-M. USDⓈ-M contracts are settled in USDT or BUSD, which are stablecoins pegged to the US dollar. COIN-M contracts are settled in the underlying cryptocurrency, such as BTC or ETH. Each contract has a different level of leverage, which is the factor that multiplies your initial investment. For example, if you use 10x leverage, you can open a $10,000 position with only $1,000 in margin.
Third, you must decide whether you want to open a long or short position. A long position means you expect the price of the cryptocurrency to go up, while a short position means you expect it to go down. To open a position, you must choose the type of order you want to use, such as a market order, a limit order or a stop-limit order. You must also indicate the number of contracts you want to buy or sell.
Fourth, you must manage your position and adjust it according to market conditions. You can use tools such as stop-loss, take-profit or trailing stop to protect your profits or limit your losses. You can also close your position manually whenever you want.
Fifth, you must consider the risks and opportunities of futures trading. Futures trading can be very profitable, but also very risky, especially if you use high leverage. You should keep an eye on price changes, volatility, open interest, funding rate, and price index. You should also be aware of news and events that may affect the market.
If you want to learn more about futures trading on Binance, you can consult the following sources:
- Future Contracts Guide for Binance, where you will find information on how quarterly futures contracts work, how they are settled and how profits and losses are calculated.
- Learn Futures Trading for Beginners, where you will find a step-by-step plan to get started in crypto futures trading with useful tips and resources.
- Guide to Investing in Future Contracts (DERIVATIVES), where you will find a detailed guide on how to operate on the Binance futures web platform with screenshots and clear instructions.
I hope this information has been useful to you and I wish you much success in your investments. 😊
Bibliography
(1) Guide to Trading Binance Quarterly Futures Contracts. https://academy.binance.com/es/articles/a-guide-to-trading-binance-quarterly-futures-contract.
(2) Learn crypto futures trading in 5 steps with our plan... - Binance. https://www.binance.com/es-LA/blog/futures/aprende-trading-de-futuros-cripto-en-5-pasos-con-nuestro-plan-para-principiantes-en-binance-421499824684902619.
(3) Beginner's Guide to Futures Trading (Web) - Binance. https://bing.com/search?q=how+to+invest+in+the+binance+futures+contracts+market+to+win.
(4) Beginner's Guide to Futures Trading (Web) - Binance. https://www.binance.com/es-LA/support/faq/gu%C3%ADa-para-principiantes-en-el-trading-de-futuros-web-360039304272.
(5) Beginner's Guide to Futures Trading（Web） - Binance. https://www.binance.com/es/support/faq/gu%C3%ADa-para-principiantes-en-el-trading-de-futuros-web-360039304272.
