Understanding Futures Trading on Binance
Binance Futures allows traders to speculate on cryptocurrency price movements by opening long (buy) or short (sell) positions. This guide covers core strategies, fee structures, and order types like Take Profit/Stop Loss (TP/SL).
How to Trade Futures Contracts
1. Long vs. Short Positions
- Long (Buy): Profit when the exit price > entry price.
Example: Open a BTC long at $65,000; close at $65,700 → $700 profit (excluding fees). - Short (Sell): Profit when the exit price < entry price.
Example: Open a BTC short at $65,000; close at $64,300 → $700 profit.
👉 Master futures trading strategies
2. Binance Fee Structure
Fees vary by leverage and order type:
| Order Type | Fee Rate (U.SDT) | Fee Rate (Coin-Margined) |
|---|---|---|
| Maker | 0.02% | 0.02% |
| Taker | 0.04% | 0.04% |
Fee Calculation Examples:
- 125x Leverage: $100 × 125 = $12,500 nominal → $12,500 × 0.04% = $5 taker fee.
- 10x Leverage: $100 × 10 = $1,000 nominal → $1,000 × 0.04% = $0.40 taker fee.
Take Profit & Stop Loss Orders
Key Parameters
- Trigger Price: Activates the TP/SL order when reached.
- Limit Price: Executes the order post-trigger.
- Quantity: Size of the triggered order.
How TP/SL Works
- Current Price: $2,400 (A).
Trigger Options:
- Take Profit: Set above (e.g., $3,000 (B)).
- Stop Loss: Set below (e.g., $1,500 (C)).
- Activation: Order becomes a limit order upon hitting the trigger price.
⚠️ Note: TP/SL orders may not fill if the market price doesn’t reach the limit price.
FAQs
1. What’s the difference between U.SDT and Coin-Margined fees?
- U.SDT: Fees based on trade value (
quantity × price × rate). - Coin-Margined: Fees based on contract size (
[contracts × multiplier]/mark price × rate).
2. Can I adjust TP/SL after placing an order?
Yes, modify them anytime before triggering.
3. Why did my TP/SL order fail?
The market may not have met your limit price post-trigger.
Final Tips
- Start with lower leverage to manage risk.
- Always backtest strategies before live trading.
- Use TP/SL to automate risk management.
Ready to trade? Sign up for Binance and apply these techniques today!