Using Binance Futures

Futures trading allow you to long and short the market. This means you make money on the way up and on the way down. When using futures you can also apply leverage this will help you max out returns if and only if it is setup correctly. This typically means a very large margin and a small order. This allows you to ride the waves and not be liquidated. Many people will say not to use high leverage but if done properly can yield good results.

You must do the following before making an entry. First understand what your liquadtion price will by using the calculator. You can find the calculator at the top of the order entry field. It allows you to calculate values before entering either a long or a short position. You can adjust the leverage slider in each tab to use it as a basis for your calculations. The calculator has three tabs:

PNL – Use this tab to calculate your Initial Margin, Profit and Loss (PnL), and Return on Equity (ROE) based on intended entry and exit price, and position size.

Target Price – Use this tab to calculate what price you’ll need to exit your position at to reach a desired percentage return.

Liquidation Price – Use this tab to calculate your estimated liquidation price based on your wallet balance, your intended entry price, and position size.

Look at the previous price action in the charts on a daily timeframe see where the support levels are and make sure your trade can ride the waves incase things go the wrong way. Always make sure you have lots of wiggle room. If you have $500 for example only use $10 for the trade at 75x leverage.

Liquidation happens when your Margin Balance falls below the required Maintenance Margin. The Margin Balance is the balance of your Binance Futures account, including your unrealized PnL (Profit and Loss). So, your profits and losses will cause the Margin Balance value to change. If you’re using Cross Margin mode, this balance will be shared across all your positions. If you’re using Isolated Margin mode, this balance can be allocated to each individual position. The Maintenance Margin is the minimum value you need to keep your positions open. It varies according to the size of your positions. Larger positions require higher Maintenance Margin. You can check your current Margin Ratio in the bottom right corner. If your Margin Ratio reaches 100%, your positions will be liquidated. When liquidation happens, all of your open orders are canceled. Ideally, you should keep track of your positions to avoid auto-liquidation, which comes with an additional fee. If your position is close to being liquidated, it may be beneficial to consider manually closing the position instead of waiting for the auto-liquidation.