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First we need to understand how contracts are traded.

How to go long/short cryptocurrencies on Binance?

Binance's contracts are divided into u-based contracts and coin-based contracts

Let's take the u-standard contract as an example to introduce the long and short tutorial of the u-standard contract.

1. Open the contract trading page Go to trade

2. Select the currency you want to trade Binance

If it is the first time entering, it is recommended to select the preferences. Click the three dots in the upper right corner of the trading page, select preferences, and switch to two-way positions. If it is a one-way position, you cannot hold long or short two-way positions.

3. Enter the commission price, fill in the order quantity, and choose to open long or short

We need to learn how to stop profit and stop loss of contracts

How to set up stop-loss and take-profit in Binance Futures?

What is a stop-loss order?

"Stop Profit and Stop Loss" orders refer to the pre-set trigger price and the commission price and order quantity after the trigger. When the latest price reaches the trigger price, a limit order will be placed at the pre-set commission price.

How to use stop loss and take profit orders?

1. Go to the [Spot Trading] or [Contract Trading] page, select [Buy] or [Sell], and then select [Stop Profit and Stop Loss]. Set the trigger price to 500 BUSD, the limit price to 502 BUSD, enter the amount of BNB you want to buy, and click the [Buy BNB] button.

2. Please carefully confirm the details of your stop-profit and stop-loss orders, and click [Confirm] to complete the order.

We need to understand the position model of the contract

What is the difference between full position and position by position?

What is isolated futures trading?

Isolated Margin Mode: A certain amount of margin is allocated to a position. If the position margin loss drops below the maintenance margin level, the position will be liquidated. In isolated margin mode, you can add and reduce margin for this position.

What is cross-margin contract trading?

Cross-margin mode: All cross-margin positions with the same margin asset share the cross-margin margin of that asset. In the event of a forced liquidation, the trader may lose all of the margin and all cross-margin positions under that margin asset.

On the trading page, you can freely choose to place orders in full-position or position-by-position mode.

Binance provides U-margined futures and coin-margined futures products. The following are the main features of the two:

We need to understand the product features of the contract

Binance coin-margin futures contracts have the following features:Crypto-Settled: Contracts are denominated and settled in the underlying cryptocurrency, without the need to hold stablecoins as collateral.

Contract multiplier: The contract multiplier represents the value of the contract. Each BTC futures contract represents $100, and each ETH futures contract represents $10. For example, $1,000 of BTCUSD 1225 quarterly contracts is equivalent to 10 contracts worth $100, and $1,000 of ETHUSD 1225 quarterly contracts is equivalent to 10 contracts worth $100.

Contract period: divided into perpetual contracts, quarterly contracts and bi-quarterly contracts

U-based futures contracts have the following characteristics:

Settled with USD-pegged assets: The contract is denominated and settled in USDT or USDC.

Contract duration: Perpetual and quarterly.

Clear pricing rules: Each futures contract specifies the number of underlying assets that will be delivered for a single contract, also known as the "contract unit". For example, BTC/USDT, ETH/USDT, and BCH/USDT futures contracts only represent one unit of the respective underlying asset, similar to the spot market.

Advantages of Coin-Based Contracts

Binance Coin-margined futures are settled in cryptocurrencies. For example, if you want to open a BTCUSD 1225 quarterly futures position, you can pay the initial margin in BTC.

If you are a miner or long-term holder, this is the ideal choice for you. Since the contract is settled in the underlying cryptocurrency, any gains will contribute to your long-term accumulation. In addition, during bull markets, the value of your collateral will grow accordingly.

You can also hedge your positions in the futures market without converting your holdings to USDT or USDC. Therefore, you do not need to sell any cryptocurrencies at a worse price.

To hedge your position, simply open a short position in any BNB-margined quarterly futures contract. If the underlying asset price drops, the profit from the futures position will offset the loss in your portfolio.

Advantages of U-margin Contracts

U-margin contracts are linear contracts settled in USDT or USDC. One of the key advantages of USDT and UDSC settlement is that you can estimate your returns in fiat currency, making U-margin contracts more intuitive. For example, when you earn 500 USDT, you can estimate the value of your returns to be approximately $500, because the value of 1 USDT is closely linked to 1 USD.

In addition, you can use the same settlement currency in multiple futures contracts (such as BTC, ETH, XRP, etc.). Even if you want to fund different contract positions, you don’t need to purchase multiple underlying currencies. Since there is no additional conversion required when trading in USDT or USDC, there will be no excessive fees.

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