AI Summary
This video is a beginner-friendly tutorial on how to trade futures on Binance, covering the entire process from depositing funds via P2P trading to placing a market order. The host, Alfred, explains key concepts such as leverage, margin modes, order types, and the importance of take profit and stop loss, while demonstrating each step on the Binance app.
Chapters
The video starts with an introduction to trading futures on Binance. The host explains that you need USDT or crypto to trade and demonstrates buying USDT via P2P trading, selecting a seller, and completing the payment.
After funding, the host navigates to the Futures tab on the Binance app. He explains that you can trade various assets like BTC, ETH, SOL, and XRP by selecting the appropriate trading pair (e.g., BTC/USDT).
The host explains leverage, which allows you to multiply your capital. For example, with $100 and 100x leverage, you can trade with $10,000. However, he warns that leverage can also amplify losses, potentially losing your entire capital.
The host explains the difference between cross margin and isolated margin. In cross margin, losses from one trade can be covered by the margin of other trades, while in isolated margin, each trade has its own separate margin, limiting risk to that trade only.
The host demonstrates how to transfer funds from the spot wallet to the futures wallet, as the deposited USDT is not automatically available for futures trading. He uses the 'Transfer' function and selects 'Max' to move all funds.
The host explains different order types: limit orders (set a specific price), market orders (trade at current market price), and others like stop limit, stop market, and trailing stop. He personally uses limit and market orders most often.
The host emphasizes the importance of setting Take Profit (TP) and Stop Loss (SL) to manage risk. He states that TP and SL are the only guaranteed aspects of trading and are crucial for success.
The host clarifies that buying in futures means you expect the price to go up, while selling means you expect it to go down. He explains that you are trading the direction of the market, not actually buying or selling the asset.
The host mentions that Binance has built-in charting tools for analysis, but he personally prefers using TradingView on desktop for his analysis before placing trades on Binance.
The host demonstrates placing a market order using 100% of his available $100, noting that it's risky without analysis. He shows the trade execution and mentions making a small profit of around 46 cents.
The host summarizes the steps: deposit funds, transfer to futures wallet, and place trades. He encourages viewers to subscribe for future strategy videos.
Trading futures on Binance involves funding your account, transferring funds to the futures wallet, and placing trades with proper risk management. Understanding leverage, margin, and order types is essential, and using tools like TP/SL and analysis platforms can help improve success.
Mentioned in this Video
Tutorial Checklist
Study Flashcards (10)
What is the first step to trade futures on Binance?
easy
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What is the first step to trade futures on Binance?
Deposit funds (e.g., USDT) into your Binance account via P2P trading or other methods.
00:17
What is leverage in futures trading?
easy
Click to reveal answer
What is leverage in futures trading?
Leverage allows you to multiply your capital, e.g., with $100 and 100x leverage, you can trade with $10,000.
04:23
What is the difference between cross margin and isolated margin?
medium
Click to reveal answer
What is the difference between cross margin and isolated margin?
In cross margin, losses from one trade can be covered by the margin of other trades, while in isolated margin, each trade has its own separate margin, limiting risk to that trade only.
05:47
What are TP and SL?
easy
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What are TP and SL?
TP (Take Profit) and SL (Stop Loss) are orders that automatically close a trade at a specified profit or loss level to manage risk.
09:14
What is a limit order?
medium
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What is a limit order?
A limit order is an order to buy or sell at a specific price or better, and it remains pending until the market reaches that price.
07:37
What is a market order?
easy
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What is a market order?
A market order is an order to buy or sell immediately at the current market price.
08:06
What does 'buy' mean in futures trading?
easy
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What does 'buy' mean in futures trading?
Buying in futures means you expect the price of the asset to go up, so you are going long.
10:29
What does 'sell' mean in futures trading?
easy
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What does 'sell' mean in futures trading?
Selling in futures means you expect the price of the asset to go down, so you are going short.
10:29
Why is it important to transfer funds to the Futures wallet?
medium
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Why is it important to transfer funds to the Futures wallet?
Funds in your spot wallet are not automatically available for futures trading; you must manually transfer them to the Futures wallet.
06:40
What tool does the host recommend for market analysis?
easy
Click to reveal answer
What tool does the host recommend for market analysis?
The host recommends using TradingView for detailed analysis before placing trades on Binance.
11:57
💡 Key Takeaways
Leverage multiplies both gains and losses
This is a critical warning for beginners about the double-edged nature of leverage.
04:23TP and SL are the only guaranteed aspects of trading
This emphasizes the importance of risk management in trading.
09:14Buy and sell in futures are directional bets
Clarifies a common misconception that futures trading involves actual asset ownership.
10:29Use dedicated analysis tools like TradingView
Highlights the value of using professional tools for market analysis.
11:57Full Transcript
[00:01] how to trade futures on Binance. This is a very simple video which I believe by understand the steps you need to take to start trading futures on Binance. If you check the description of this video. I've got a link in there which you can
[00:17] use to create one for yourself. My name is Alfred. If you're new here, kindly is Alfred. If you're new here, kindly subscribe to this channel. on the futures market, you need USDT or some form of crypto to be able to do
[00:32] that. So I'm going to buy some. Now for me to be able to buy crypto on this platform, I'm going to tap on the add funds button. Then from here I'm going to select P2P trading, okay? That means I'm going to buy from someone who is
[00:46] selling on the Binance app, okay? Now I'm going to select this first guy who has posted 11.74. That is the rate the person is willing to sell to me, okay? So I'm going to tap on buy. Then over here I'm going to select buy
[01:02] USDT, then input how much I'm willing to buy. So I want 100 USDT, okay? Now this person is willing to sell 100 USDT for me at 1,174
[01:14] Ghanaian cedis. Of course, you can see the price the person is willing to sell one USDT which is 11.74. Now I'm going to select the payment method. Over here there's MTN mobile money, okay? Now there are some terms
[01:28] and conditions here that I need to read. This one says, "No third party. Your money would be refunded if you use third party account for cash out and you will ahead and place this order because I'm going to pay this person with my direct
[01:44] account. So I'm going to tap on place order. order has been placed and it says that I need to upload payment proof when it's
[01:58] done. Okay. I just completed the payment, so I'm waiting for this guy to release the USDT to me so we can proceed. So, as you can see, the funds has been released to me and we now have 100 USDT in our account. So, yes, we're
[02:13] going to go from here and then we're going to access the market to start trading. Okay? Now, if you look at the bottom of the app, you realize that from home we have markets, we have trade, and then there is also futures. The last
[02:28] option is assets. Okay? What we're going to do is that we are first going to tap on the futures tab to access the futures market. Okay, now from here you'll be able to trade on the futures market, but the question is how? Okay, now before
[02:44] you get confused, what you need to pay attention to is over here there is this BTC USDT here. If you tap on there, it will give you a full list of all of the assets that are available on the futures market on Binance. So, over here you'll
[02:59] be able to search any currency at all. So, if you want to trade Solana, So, if you want to trade Solana, you will see SOL USDT. If you want to trade, let's say Ethereum, you will see ETH USDT. Now, from this futures market
[03:15] you'll be able to trade almost any cryptocurrency available on the Binance market. Okay? You'll be able to trade Solana, Bitcoin, XRP, Ethereum, and so
[03:27] many other cryptocurrencies if you think about it. Now, what you need to understand is that for every currency pair, there is a quote and then a base currency. So, the base is mostly the
[03:40] currency or the asset you're trying to trade. So, Bitcoin or XRP or Solana, that is the base. And then you need a quote, which is what you are trying to trade with. So, in this case, I just bought USDT and mostly I'm going to
[03:54] trade these assets with my USDT. I will trade these assets with my USDT. I will now select BTC / USDT. If my asset is in USDC, then of course I'm going to select BTC / USDC. So, if you tap on this drop
[04:09] BTC / USDC. So, if you tap on this drop down here, you can search BTC down here, you can search BTC USDC. All right? So, you can trade BTC USDC. Sorry. You can try BTC USDC.
[04:23] Sorry. You can try BTC USDC. The same time you can try BTC USDT as well. Now, moving on from that, there is also something called leverage. Now, this leverage is what makes the futures market a very attractive market for a
[04:37] lot of people because with this leverage, you'll be able to multiply your capital so many times and trade the market. So, for example, we just deposited $100. If you want to enter a trade and we want to enter with a higher
[04:51] margin or we want to enter and get a lot of profit, what we can do is that we can drag this margin all the way up to let's say 100, okay, and click confirm. What that means is that our $100 capital is going to be
[05:07] multiplied 100 times and we'll be able to trade with that capital in the market. That is one of the advantages of the futures market. Now, the disadvantage of this model is that you can also lose your money the same way
[05:20] you can increase it. It means that if you start losing, the moment you lose that $100, the trade is going to close and you're going to lose all of your money. So, the same way you can increase your money by using this leverage, you
[05:33] can also lose it by increasing the same leverage. So, you need to find a sweet spot where it's much comfortable based on the capital you are trading with. There's also something called margin. So, if you tap right here, you see the
[05:47] different margin modes on the Binance Futures market, all right? Now, the first one is a cross margin, the second one is the isolated margin. Let's say you have one trade that you have lost about $100, but you have another trade
[06:00] that you have made about $200. It means that the one that you have lost about $100 will still be running because it will use the margin from your other trade, okay? Now, if you switch that to isolated margin, it means that for each
[06:15] trade that you open on this platform, each of the trades that you have on there are going to have their own isolated margin. So, if one of them is isolated margin. So, if one of them is having a $100 win and the other one is
[06:27] negative $100, the one that has a positive $100 is still going to run on its own. It's not going to have a shared margin where it's going to support the one that is in a losing position. So, that is basically it with isolated and
[06:40] cross margin. So, although we deposited $100 in our Binance account, it's still not available on our Futures wallet. That is because we have to manually transfer the funds from our account into the Futures wallet, okay? So, what we
[06:54] tap here, and then we're going to transfer some funds from our current wallet into our Futures wallet. So, we're going to tap on the first one which says spot, then we're going to choose funding because
[07:08] that is where our $100 currently reside, okay? Now, we're going to tap on max to move everything from there into this account. Now, we're going to tap confirm Now, we have funds in our Futures wallet, so we can go ahead and start
[07:24] trading. But then, before we place any trade, I need to explain to you this important part of the Futures platform, all right? Now, over here, if you tap on this drop down, you're going to see the different types of orders you can
[07:37] choose, okay? Now, there is a limit order, which means you can place a particular trade using a limit order saying that when the particular asset gets to this particular price, I want to either buy or sell. Okay, so that is
[07:52] what limit orders are. Okay, we also have post only. There is a market order. Market orders are basically the current market price. So whatever the market price is is going to give it to you. All right, there is also stop limit, stop
[08:06] market, trailing stop, conditional, T wild, skewed order. These are all different types of orders, but the ones that I personally use most of the time that I personally use most of the time are limit orders and then also the
[08:20] market order. All right, so mostly when I'm right about my analysis and I know that wherever the market is at that particular point in time is where I want the market order. However, if my analysis tells me that if the market
[08:34] gets to a certain price, there's a particular direction it's going to take, then I'm going to click the drop down and select the limit order. All right, now the limit order I'll be able to input the price I want to either sell or
[08:47] buy. So we can set a limit order that when Bitcoin goes from 116,000 to 117,000, we want to place a trade. All right, now
[08:59] this is a limit order. This order is going to stay on pending until the asset actually gets to that particular price. So until it gets to 117,000, the order is not going to take effect. However, we can also come down here and
[09:14] set our TP and SL. Now TP means take profit, SL means stop loss. Now this is very important, it's crucial you understand this. Without TP and SL, you A lot of people may gamble their way through, but I think if you want to make
[09:31] money from this market, it's crucial you understand this part of trading. There's nothing else guaranteed in trading aside your take profit and your stop loss. Now, over here you see this green button and this red button. Well, the market
[09:44] had here, the buy option will help you buy in the market. Buy basically means that the market is going up. So, if Bitcoin decides to go from 116,000 to 117,000, it means the market is buying. Now, if
[10:00] the market decides to go from 116,000 to 115,000, it means the market is selling. So, if your analysis tells you that the market is going to go from 116,000 to 117,000,
[10:15] then your direction is a buy direction. If your analysis is also telling you If your analysis is also telling you that it's going to head towards 115,000, sell option, all right? So, basically that's what buy and sell orders are.
[10:29] Over here, buy doesn't mean that you are buying Bitcoin and holding it. Sell you are selling it. You are basically trading the market based on the direction. So, you're either going with the uptrend or the downtrend. At this
[10:44] trade and all of that. However, you don't understand how to analyze the market. So, it's essential you understand analysis. There are inbuilt tools on the Binance app which you can use to analyze the market. So, over
[10:59] here, if you tap on this particular icon, it will give you this analysis view. You'll be able to see the chart over here. Now, there's a time frame here, which we have 15 minutes. We have 1 hour.
[11:13] We have 4 hour. All right? What this basically means is that for each candle that you are seeing, if you are in the 4-hour window, seeing, if you are in the 4-hour window, each candle is formed in a 4-hour time
[11:27] frame. So, it takes 4 hours for each one to form. If you come to 15 minutes, it means that each candle is taking 15 minutes to form. So, by looking at this chart, you'll be able to tell for yourself where the market is probably
[11:42] going to go. But, personally, I don't think looking at this chart alone will give you all of the information you need to analyze the market. That is the reason why I personally use a dedicated trading analysis tool, which helps me in
[11:57] making my own analysis. So, over here, I've got TradingView on the desktop, which I use for all my analysis before I come on Binance to place any trade. However, inside Binance, you also find the charts view. You'll be able to
[12:11] analyze the market right from the app without using any third-party tool. But, personally, I prefer to do all my analysis on TradingView and then only come on Binance to place my trades. Since this video is not mainly on
[12:24] strategy and all of that, I'm just going to click a button to just test it out so you see how it works. However, if you're interested, I'm going to make a detailed video on my strategy and how I personally analyze the market and pick
[12:38] my trades. So, let's go back and then let's switch this from limit to and then let's switch this from limit to market order. Okay. Now, let's drag this market order. Okay. Now, let's drag this to load our account. This is using 100%
[12:53] to load our account. This is using 100% of our available $100, okay? And then, we are going to place our trade. This is a very risky one because there's no analysis back in this. So, let's just tap on buy.
[13:12] let's look at that. All right. So, now we've made about 46 cents. As you can see right there, we have 43 cents. However, we've not set any TP or
[13:25] SL. I'm just leaving this to run because we are basically running a demo here. So, I don't want to complicate things. However, in my other video where we're going to look at analysis and all that, we are going to go through that process.
[13:39] So, as you can see, this is how trading on the Binance Futures Market works. So, if you're interested in trading futures, you have to go through all of these steps to be able to start trading on the futures market. You first need to
[13:52] deposit some funds in your wallet. Then from there, you need to transfer from your funding wallet or your spot wallet into your futures wallet. Now, upon doing that, you'll be able to now place trades in the market. If you're
[14:06] interested in my strategy video, if you're interested in me analyzing the market and showing you how I personally analyze and trade the futures market, you should first off subscribe to this channel and also subscribe to my trading
[14:20] channel specifically for that because most of those videos are going to go on most of those videos are going to go on that particular channel.