Binance, one of the world's leading cryptocurrency exchanges, offers a platform for trading futures derivatives, which presents numerous benefits to traders. Engaging in futures trading on Binance allows traders to leverage their positions, meaning they can increase their exposure to price movements without committing the full value of the contract.
This magnifies potential returns, but it's worth noting that it also amplifies potential losses. Additionally, Binance provides a highly liquid market, ensuring ease of entry and exit.
The platform also offers advanced trading tools, robust security measures, and a user-friendly interface, making it conducive for both novice and experienced traders to hedge their positions, speculate on price movements, and diversify their investment strategies.
Here is a step by step guide on how to open a futures trading account on Binance with hedge ode and leverage settings.
Step 1. Login to your Binance account and from the left top menu click " Derivatives" and then click "USD@-M Futures.
Step 2. Now you will see option to open futures account. Click "Open Now" button.
Step 3. Now you will see the option to select futures account leverage. Click the "Customize" option, select "1x" leverage and then click "Open Futures Account".
Step 4. Now you will have to take a test comprised of 14 questions. Don't worry you won't be disqualified. If you select a wrong answer you will be notified and then you can choose the correct answer and proceed to next question.
Step 5. After test completion you need to enable the hedge mode. To do that click on the "settings" icon at the top right corner.
Step 6. On this screen click "Position Mode".
Step 7. Now in the Position Mode tab select "Hedge Mode".
Step 8. Now that futures account is opened with leverage 1x and hedge mode enabled, you have to add balance to your account. It's best to first send USDT(TCR20) to you Binance account and then transfer those USDT to your Futures account for trading. To transfer USDT from Fiat/Spot account to Futures account go to "Wallet" in the top right menu and click "Overview".
Step 9. On this screen click "Transfer" button in the top right corner.
Step 10. Now for the "From" option choose "Fiat and Spot" and in the "To" choose USD@-M Futures. Choose the "Coin" as "USDT" and then at the end enter the amount you want to transfer and "Confirm". That's all now your account is all set for futures trading.