
Binance perpetual futures offer up to 125x leverage, allowing traders to maximize their gains with a relatively small amount of capital.
This high level of leverage can be both a blessing and a curse, as it amplifies both gains and losses.
With Binance perpetual futures, traders can enjoy 24/7 trading, regardless of market volatility or external factors.
This means you can trade at any time, whether you're a morning trader or a night owl.
One of the key benefits of Binance perpetual futures is the ability to trade with minimal upfront fees.
What Are Binance Perpetual Futures
Binance perpetual futures are a type of futures contract that removes the expiration date, allowing users to engage with market movements across various timeframes.
They are a popular choice for traders due to their flexibility and efficiency. Binance offers over 240 perpetual futures pairs for trading.
Perpetual futures contracts are linear-margined, meaning they can be settled at any time. This provides traders with a simple way to bet on the direction of a market without fixed expiry dates or delivery of the underlying asset.
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Binance allows users to trade perps with leverage, offering up to 125x leverage on some contracts. This means traders can amplify their potential gains, but also increases the risk of liquidation.
Traders can use a range of margin assets, such as Bitcoin, to trade perpetual futures contracts. The funding rate is capped at ±2.00%, with settlements occurring every four hours to maintain a predictable trading environment.
Perpetual futures contracts are a versatile tool that allows users to engage with market movements across various timeframes. This makes them a popular choice for both short-term traders and long-term investors.
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Trading on Binance
Trading on Binance offers a wide range of perpetual futures products, with over 240 perps pairs available for trading.
Binance's perpetual futures are linear-margined futures contracts that can be settled at any time, making them a favorite tool for traders looking to capitalize on price volatility or seek hedging strategies.
Trading perpetual futures on Binance allows users to trade with leverage, offering up to 125x leverage on some contracts, with both cross and isolated margin options.
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Trading Fees
Trading fees on Binance are quite competitive, especially for those who are willing to put in the time to become VIP 9 users.
The fee schedule for Binance's USD(S)-Margined futures starts at 0.012% for maker fees and 0.03% for taker fees for regular user-tier traders.
For VIP 9 users, these fees fall to as low as -0.01% for makers and 0.0207% for takers, which is a nice rebate.
Note that negative figures do indicate a fee rebate, which is a nice bonus for traders who are consistently active on the platform.
The funding rate, which is typically around 0.01% per funding period, is also something to consider when trading on Binance.
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Binance Trading Guide
Binance's perpetual futures products are among its most popular offerings, with over 240 perps pairs available for trading.
These products are linear-margined futures contracts that can be settled at any time, making them a favorite tool for both short-term traders and long-term investors.
Binance allows users to trade perps with leverage, offering up to 125x leverage on some contracts, with both cross and isolated margin options.
To trade perpetual futures on Binance, you'll first need to open a futures account or log in to your pre-existing account, and complete KYC steps if required.
You'll then need to fund your derivatives account by depositing cryptocurrency to your wallet and transferring your balance to the USD(S)-M or COIN-M futures wallet.
The trading interface is where the magic happens, and you can go long or short on the asset using the order panel, setting your order size, entry price, and other parameters.
Be sure to double-check your leverage parameters before posting your order, as higher leverage comes with a higher chance of liquidation.
Market orders will execute immediately, while limit orders will trigger if/when the specified conditions are met.
Once your order is filled, you'll need to manually close it using a market order, or set a limit close order to lock in your profits or losses.
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Contract Specifications
The contract specifications for Binance perpetual futures are quite straightforward. The maximum funding rate at launch is set at +2.00% / -2.00%.
Funding fees are settled every four hours, which is a relatively frequent schedule. This is likely designed to keep the market stable and prevent large price fluctuations.
The funding fees, tick size, and leverage limits may be adjusted based on market risk conditions, as stated by Binance. This means that the contract specifications may change over time.
For now, traders can expect a maximum funding rate of +2.00% / -2.00%.
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Funding and Delisting
Binance Futures Trading will settle funding fees every four hours for perpetual futures contracts, with a maximum funding rate of +2.00% / -2.00% at launch.
The funding rate may be adjusted based on market risk conditions, so it's essential to stay up-to-date on any changes.
Binance has the right to introduce additional protective measures without prior notice, including changes to leverage limits, position values, and maintenance margins.
Funding Rate
The funding rate on Binance perpetual futures contracts is a crucial aspect to understand. Every eight hours, funding rates are paid either to the long or the short based on differences with the spot market.
The maximum funding rate for these contracts at launch is set at +2.00% / -2.00%. Funding fees are settled every four hours.
Binance perpetual futures contracts are linear-margined futures contracts that can be settled at any time. This allows traders to bet on the direction of a market without the additional considerations that come with traditional futures.
The funding rate helps prevent lasting divergence in the price of the spot and perpetual contract markets. It's a feature that makes Binance's perpetual futures a favorite tool for both short-term traders and long-term investors.
Funding fees may be adjusted based on market risk conditions, so it's essential to stay up-to-date with any changes to the contract specifications. Binance has stated that the specifications, including funding fees, may be adjusted based on market risk conditions.
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Binance to Delist Contracts
Binance has announced that it will be removing several perpetual futures contracts from its listing, including STP, Status, MovieBlock, Radworks, and Convex contracts.
Traders trading these contracts are advised to review their strategies to avoid potential liquidation of positions, particularly when setting leverage.
The delisting will take effect on May 13, at which point Binance will prohibit opening new positions on contracts for STPTUSDT, SNTUSDT, MBLUSDT, RADUSDT, and CVXUSDT.
Binance Futures Trading reserves the right to introduce additional protective measures without prior notice, which may include changes to leverage limits and position values.
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Benefits and Guides
The CGPT/USDT Perpetual Contract offers traders the ability to leverage up to 75x. This means you can control a larger position with a smaller amount of capital, but be aware of the increased risk.
Traders can take advantage of the 24/7 trading schedule with USDT as the settlement asset. This provides flexibility for those who want to trade at any time.
The funding rate is capped at ±2.00%, which helps maintain a predictable trading environment. Settlements occur every four hours to keep things stable.
Benefits of Trading Coin-Margined Contracts
Trading coin-margined contracts on Binance offers a range of benefits that can enhance your trading experience.
You can enjoy synergies between the COIN-margined perpetual and quarterly products, allowing you to use profits made in one market to cover margin in the other. This is particularly useful for those hedging between the two markets.
Binance allows users to trade COIN-margined perpetual contracts with leverage, which means you can magnify small movements in price to potentially generate outsized profits. This type of leverage is available up to 125x on some contracts.
Perpetual contracts like COIN-margined perpetual contracts do not have an expiry date, so you don't need to keep track of various delivery months. This flexibility is a key advantage of trading perpetual futures.
Trading COIN-margined perpetual contracts also allows you to trade cryptocurrencies with leverage, which means you can potentially generate outsized profits from small price movements.
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Hodl & Earn
Hodl & Earn is a strategy that allows you to hold onto your cryptocurrencies for the long term and potentially accumulate more.
In a bull market, investors are more inclined to hold onto their cryptocurrencies, and with COIN-margined futures, you can hedge your positions without converting any of your holdings into USDT.
You can use perpetual contracts to hold and potentially accumulate more cryptocurrency for longer-term, and any profits can contribute to your long-term BTC stack.
Traders can now hedge their positions in the futures market without selling any Bitcoin at a compromised price, which is a great way to increase your Bitcoin holdings over the long run.
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Sources
- https://blockchain.news/news/binance-futures-hippousdt-1000xusdt-perpetual-contracts
- https://www.chaingpt.org/blog/binance-futures-launches-cgpt-usdt-perpetual-contract
- https://coinmarketcap.com/academy/article/how-to-trade-crypto-futures-on-binance
- https://crypto.news/binance-to-delist-several-perpetual-futures-contracts/
- https://medium.com/@henryolamide16/what-is-binance-coin-margined-perpetual-futures-c30a7550bf9d
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