So, to make a profit through this possible downtrend, you would first short sell ETH $2,000 and then repurchase it $1,500. This means that when you expect the price of an asset to fall in the near future, you sell it first at a higher price and purchase it later at a lower price.įor example, Ethereum ( ETH) is trading at $2,000, and you expect it to fall to $1,500 within a week.
Short Selling is done to earn profit in a downtrend trend market. But, in Short Selling, the chronology of the transaction is flipped, where you first sell an asset and buy it later. In a typical transaction, you buy first and sell later. So, let us dive in and explore the new world of Futures Trading on Binance. Once you sign up and complete your KYC on Binance, you are good to use the Derivatives Trading feature of the exchange. Get your free trading account with Binance here. If you don’t already have a trading account with Binance, you would need one to use the Futures Trading feature. So, we will divide this guide into two sections in which we will first Short Sell a Futures Contract and in the second section, we will Long a Futures Contract. Further, the leverage allowed for these contracts is up to 20x on Binance (this limit has been reduced recently from the previous maximum leverage of 100x).
AMP COIN FUTURE HOW TO
Thus, this article will show you how to use Binance Futures Contracts for the above-stated objectives. However, when you grow your skills as a trader you understand that you can maximize your gains and minimize your risks with some innovative strategies.Īlthough for long-term trading, you should trade in spot markets, Futures markets can be used to: Trading is an art, and every person starts their journey with spot trading.
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