In comparison to other exchanges, Binance Futures claims high leverage of up to 125x. Additionally, trading is possible forever. This implies that you can create a perpetual contract with no expiration date when you trade futures on margin. This eliminates the need to keep track of different coins’ expiration dates. The default currency for coin perpetual contracts on Binance Futures is Bitcoin. Additionally, novices who are unfamiliar with futures trading can easily use this platform. Due to these benefits, it has achieved amazing achievements, growing by 500% in just one month after inception.
Futures on the 바이낸스 platform are exchanged via perpetual contracts. Because there is no expiration or liquidation, this is different from conventional futures markets. The contract period for active futures trading results in holding expenses after it expires. It is occasionally unstable since the price at the time of settlement in the future will be different from the price at the moment. As the difference grows, holding expenses rise and futures prices become hazy, potentially leading to a divergence from the spot market.
By not transmitting the real commodity in the contract, perpetual contract trading imitates the spot market in an effort to close the difference between the futures price and the market average price. It is therefore reasonably close to the benchmark price index.
In the perpetual contract market, funding is the payment made between short purchases and short sales. Funding’s interest rate dictates who will pay and who will receive. When the interest rate is positive, a short buyer pays a short seller; when the interest rate is negative, the opposite occurs.
In order to avoid manipulation and guarantee that the everlasting contract trade and the spot market price are equal, the market average price estimates the unrealized profit or loss of investors using the market average price.
It is strongly advised that you are aware of the level of margin and maintenance margin at the time of opening and that you liquidate and hold positions greater than the maintenance margin to avoid paying expensive commissions and receiving margin calls.
You can make significant orders with collateral on Binance Futures, which increases the risk. In this instance, forced liquidation does not totally preserve the margin. If you do not have a sound investing plan, it is quite dangerous. The useable margin in the futures market has expanded due to the rapid technical advancements.