Welcome to this post, where we are going to see how Coin-M futures work on Binance, to get the most out of them.
USDT-Margin futures are similar to standard futures, with margin and settlements in fiat currencies, for the time of delivery, as is the case with commodities or assets such as gold. COIN-Margin futures are instantaneously settled in the underlying asset (e.g. Bitcoin or altcoin) and are designed as an “inverse” contract similar to traditional financial contracts, which are adversarial. This instantaneous and fungible nature of cryptocurrencies has popularized COIN-Margin contracts, such as BTC or ETH margin futures.
The first thing to do is to open your Binance account. If you do not have a Binance account, you can create one below.
Once in our account, we must transfer the funds from the spot account to the Coin-M futures account. Don’t get confused in sending them to the USDT futures account. Here, you can send the cryptocurrency you want to trade in futures.
With funds in our Coin-M futures account, we will go up in derivatives, and Coin-M futures.
If you have not changed anything, it will appear in the bitcoin cryptocurrency. The first thing to do is to choose the cryptocurrency you want to trade in futures. Go to the search engine, search for the name, for this example I will take cardano, ada, and click on the cryptocurrency you want to trade. Select the perpetual or delivery contract depending on what you want. If you don’t know the difference, I’ll leave a link in the description so you can know. But usually, you will be more interested in going with the perpetual contract.
The next thing we need to select is cross or stand-alone. You can see what each one is, but my recommendation is to use cross for less complications. We continue with the level of leverage, usually comes standard 20. In this case, it depends on each one the risk you want to take and the possible benefit. The higher the leverage, the more profit you will be able to make, but also the higher the risk of liquidating your positions. For this example we will select 10 leverage.
We continue with the type of order, limit, market or stop limit. My recommendation if you want the order to be executed at the market price, indicate market so you don’t have to keep an eye on the contract price. If you want the trade to be executed at a lower price, indicate limit and your target price.
Finally, you will see below the available amount you have and you must indicate the amount you want to use. You will also see the equivalent of one contract, which is usually between 10 and 100 dollars. We select the amount of your cryptocurrency, and below it will show us the amount of contracts that we will acquire with that amount. Note that the leverage level influences the amount of contracts that we will receive, apart from the amount of cryptocurrency that we indicate.
We will find a stop loss, which allows us to stop the operation when the price of the cryptocurrency reaches the value we have indicated. Undoubtedly, although it is optional, it is very interesting and useful to also indicate a stop loss so that the operation does not end with all your funds. Therefore, I recommend that you indicate a stop loss value, where you believe that if it reaches that price, the trend of the cryptocurrency will change. In addition to a take profit on the price you think it can reach and collect profits.
With all this indicated, we only need to indicate long or short. Long, if we believe that the price of the cryptocurrency will continue to rise, or short, if we believe that the price will fall. One aspect of futures is that you can make money both when the cryptocurrency goes up and when it goes down.
With short or long selected, confirm the trade, and you will have your futures trade live. You will be able to see what state it is in at the bottom of the panel of the cryptocurrency you have traded, in positions. And at any time you will be able to finalize the contract with the relevant profits or losses. In addition to seeing at all times the profits or losses in real time of the contract.
I hope this post has helped you to know better how Coin-M futures work in Binance. Remember, if you do not have an account with Binance, below you will find a link to create your account.