The allure of cryptocurrency contract trading is that you can seize opportunities even without a large initial capital.
By using leverage, you can amplify the trading limit of your held funds up to 125 times, which means you can expect considerable profits even in the short term.
Moreover, you can profit not only when prices rise but also when prices fall, meaning there are no directional limitations on trading.
For this reason, contract trading has gradually gained attention as a short-term financial tool and has become another option for investors seeking rapid asset growth.
When trading on Binance, it is very important to first understand the fee structure.
In spot trading, both buying and selling incur a fee of 0.1%.
However, in contract trading it is different: the fee for limit orders is 0.02%, while the fee for market orders is 0.04%.
One easily overlooked point is that fees will increase with the leverage multiplier.
For example, if you use 10x leverage in a market order, the actual fees you need to bear will increase to 0.4%.
If you use 50x leverage, the fees will soar to 2%.
These numbers may seem small at first glance, but if you hold a position for a long time, these costs will accumulate, resulting in a significant burden on long-term investments.
Therefore, many investors will pay attention to the timing of joining Binance to enjoy fee discounts.
There is a way to save on these fees, which is to register through the link below, where you can get a 20% fee discount.
📍 Get a 20% discount on Binance trading fees
Even existing users can receive a 20% fee discount if they meet the following five conditions:
The invited person already has a registered Binance account.
The invited person has never accepted any invitation before.
The invited person's account has not traded or used products on the Binance platform in the past 180 days.
When eligible invited persons open the link and log in, a confirmation window will appear.
The invited person must click [Now Binding] for the binding to take effect.
You can register using your email address or phone number.
The password must be a combination of uppercase letters, lowercase letters, numbers, and special characters.
Subsequently, the verification code will be sent via email or SMS, and after entering the verification code, the registration process can be completed in less than 3 minutes.
Binance contract trading methods
Next, let's take a brief look at how to conduct contract trading.
At the bottom of the Binance app, there is a Futures (contract) menu where you can engage in contract trading.
Buy/Long means to buy, that is, to invest in price increases.
Sell/Short means to sell, that is, to invest in price declines.
In other words, if you expect the price to rise, invest in a long position; if you expect the price to fall, invest in a short position.
In contract trading, leverage is a core element. In the middle of the trading interface, it defaults to 20x, and you can set the leverage multiplier directly here.
Leverage can be set up to a maximum of 150x. For example, if you invest 1 million Korean won and use 20x leverage, it is equivalent to trading with 20 million Korean won.
If the market moves as you expect, the asset will increase rapidly; but if the trend goes the other way, losses will also accumulate just as quickly.
Therefore, it is very important to choose a leverage multiplier that suits your situation.
Finally, let's look at the types of orders.
For beginners, it is sufficient to understand limit orders and market orders.
Limit orders allow you to buy or sell at the price you desire.
Market orders will be executed immediately at the current market price, with the advantage of speed.
However, it should be noted that the transaction price may be worse than you expect.
Summary
Above, we introduced the methods of Binance contract trading and the fee structure.
Contract trading offers high profit opportunities, but it also comes with significant risks.
Therefore, beginners must start practicing with low leverage and small amounts of funds, gradually accumulating experience.
In addition, registering through official channels to get fee discounts, combined with strict risk management, will make your investments safer.