One of the services that a trader looks for when choosing a platform is futures contract trading services .
Not all platforms have futures contract trading services as the majority of traders and investors prefer the spot market .
However, futures contracts are also being sought as they can be a way of securing or hedging against the spot market . So the majority of traders are also looking for platforms that provide these services.
One of the largest platforms in the world that provides this service is Binance . Binance is a platform with one of the largest trading volumes in the world to date.
So in this article, we will explain in more detail how to buy futures contracts on the Binance platform . This time the example that will be used is a futures contract for Bitcoin.Read AlsoWhat is Bitcoin Futures, Futures Trading?
Read Also : 18 Best And Secure Bitcoin Wallet
Masuk ke Akun Binance
Make sure that before starting a transaction, the trader already has a Binance account. If not, traders must register first, which can be seen here .
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Then, after registration or registration and verification, traders can log in or log into the Binance app or website to make transactions on Bitcoin futures contracts .
After logging into your Binance account, you have to make sure that the account has a wallet that contains funds. If there are no funds, traders can make a deposit.
Deposits can be made in several ways such as through local platforms as well as debit or credit cards. Keep in mind that there is no minimum deposit balance for traders.
The full way to make a deposit can be read here .
Enter Futures Kolom
The next step is to enter the Futures column , the trick is to click on the text at the bottom as shown in the following image.
From here later Binance will ask some questions to make sure traders understand the futures contracts that are on Binance and how they are traded.Read AlsoKnow the Types of Futures Contracts Based on Expiration Time
After all the questions have been answered, the trader can proceed to make futures contact transactions on Binance.
Selecting the Type of Futures Contract and Funds Transfer
The next step is to choose the type of futures contract you want to trade. There are two types of futures contracts on Binance, namely USD-M (USDT-M) and COIN-M.
USDT-M is a futures contract with margin where the settlement or settlement is done using US Dollars. Whereas COIN-M is executed with the asset or coin that underlies the contract.
There is no difference in the value of the two contracts so the trader can choose the one he feels is suitable. The way to choose is to click on the text in the application as shown in the image below.
After selecting, the trader can make transfers to the intended wallet, namely the wallet for USD-M (USDT-M) or COIN-M. You can do this by following the steps in the image below.
The first thing to do is click on the word wallet as shown above. After that the trader can click on the spot posts and click on transfer as shown below.
Traders can then choose the destination wallet or wallet they want to go to.
Selecting Assets from Futures Contracts
After the funds have been successfully transferred, the trader can choose the type of asset that will underlie the preferred futures contract . The trick is to click on the text listed as shown below.
In this guide, the asset chosen is Bitcoin where the contract name is BTCUSDT.
Choosing Margin Type
In futures contract transactions , traders are given the convenience of using margin or leverage by Binance. Therefore, a trader can choose from two types of given margins .
Binance has cross margin and isolated margin where the difference is in the amount of margin that must be available.
Cross margin makes it easier for traders to spread margin over several positions, while isolated margin is focused on one position. Another difference is the interest rate provided.
To choose the type of margin , traders can click on the text listed as shown in the image below.
Later the trader will be given two margin options as shown below.
After that, the trader can choose the level or leverage ratio to be used. The trick is to click on the text listed as shown below.
From this article, a choice of ratios that can be used with a risk warning will appear as shown below.
Keep in mind that this ratio uses borrowed funds or the leverage used. For a more complete explanation of margin, traders can read the article here .
After everything is done, it’s time to choose the position you want to open. First the trader must choose whether to open a sell position or a buy position.
For example, the position to be opened is a buy position. How to select it is by clicking on the text as shown in the image below.
After selecting, the next step is to choose the type of transaction. The trick is to click on the text as shown below.
In futures contracts on the Binance platform, there are five types of transactions, namely market , limit, stop-limit, stop-market, and trailing-stop. Traders can choose the type of transaction by clicking on the text as shown in the image below.
After that, the trader can choose the price for opening the position, if not using the type of market transaction , and also the amount of assets in the contract.
The trick is to click on the text like the box in the image above. After that, the trader can set the place for take profit (TP) and stop loss (SL) as well as the type of transaction which if not using market transactions , can choose Post Only .
In addition, if the opened position wants to reduce other positions , the trader can choose reduce only transactions . The trick is to click on the text listed as shown below.
After everything has been confirmed to be correct, traders can click the Buy/Long or Sell/Short buttons as shown in the image below.
Then, the positions that the trader has confirmed will be listed in the table at the bottom. If the transaction is not a market order or is part of a limit transaction , the transaction will be listed in the open orders column as shown below.
Open orders indicate positions that have just been confirmed but not yet opened. Keep in mind that the position can be canceled with the cancel buttonas shown above. However, once opened , the position will be located in the Positions column as in the image below.
If traders are satisfied with the benefits achieved, if it does not want to wait for the plan take profit early traders to close positions by means meng- click the article Close P osition as shown below.
After clicking the button, the trader will be given a confirmation warning as shown below.
If it is correct, the trader only needs to click the confirm button as shown above. After that, the transaction is complete, and the trader understands how to trade futures contracts on the Binance platform.
Read Also : Fee Trading By Binance Low Fee
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