Full Transcript
[00:01] Binelance futures trading can seem overwhelming, especially when you first see the interface with so many elements. In this tutorial, I'm going to give you a guided tour so you know what everything on the screen means, how
[00:14] futures trading works, and how to make your first trades safely. Let 's begin by understanding what futures trading is and how it differs from Spot Trading, you buy a cryptocurrency at a specific price. If
[00:29] the price goes up after your purchase, you make money. On the other hand, if the price goes down, you lose money. It's that easy. However, in futures trading, you can make money in both cases, that is, whether the price goes up or
[00:42] down. Think of it as a kind of prediction. If you believe that Bitcoin or any other cryptocurrency is going to rise, you can open a long position. And if you think it's going to go down, you can open a short position.
[00:55] You'll understand the concept of long and short positions in a moment, but in futures trading you also have the possibility of using leverage. Leverage is a tool that allows you to open a position but with very little money. For
[01:09] example, if you choose a leverage of 10x, it means that you can open a position of $1,000, but only have $100 in your account. Therefore, if the price is in your favor, you can earn much more. But if the
[01:24] price isn't in your favor, you can also lose much faster. That's why it's important to understand that the more leverage you use, the greater the risk of losses. I hope this briefly explains what
[01:37] futures trading is and what the risks are. Finally, before we begin, if you haven't yet seen my video on how to do Spot Trading on Binance, I recommend you pause this video for a moment and go
[01:50] to the video in the description first so you can understand everything very well. But if you already know the platform, you can continue without any problem. Let's move on to the main part of this video and go to the Binance app. Remember that
[02:03] to trade futures you need to be in the pro mode of the application. If you see the same thing as me, then you 're in light mode. To switch to yellow icon in the top
[02:16] left corner and on this screen select Binance Pro at the bottom. Now, let's select the futures menu in the ribbon and we'll see this screen. I know it's scary at first
[02:30] , but look how it's not so difficult to understand. First things first, at the top you'll notice these two futures options. I highly recommend starting with the first option that says USD. The difference is
[02:44] that Coin futures are settled in cryptocurrencies, while the first option's futures are settled in USDT or USDC. Therefore, we will operate in this section. At the top you will see the pair you will be
[02:59] trading. If you click on it, all available options will appear all available options will appear , whether with USDT or USDC. For this example, I'm going to select the Ethereum and USDT pair. Clicking on
[03:14] the star will add this pair to your favorites so you can easily find it here and choose it more quickly next time. So, I'm going to select it and then you'll find these three very
[03:28] important options. The label on the left that says crossed indicates the margin mode you will use. By default it will appear as crossed. I highly recommend that you change it to isolated margin. The reason is that with an isolated margin
[03:42] you will only risk the amount of money with which you have opened a position. On the other hand, if you choose a cross spread, you could end up losing all the money you have in your futures wallet. If the price isn't right for you. If it's
[03:57] worry, we'll see an example a little later. The label in the center, which appears to me as 25x, is the famous leverage. The closer it is to one, the lower your risk will be. As you increase it,
[04:13] you also have the possibility of losing much faster. But if your predictions are correct, your profits will be much greater. As we mentioned at the beginning of the video, if you choose a leverage of 10x, it
[04:26] means that with only 10 USDT in your account you can open a position of 100 USDT. In fact, I'm going to leave it at 10x so you can see the behavior. We click on confirm and the label on the right indicates the asset mode. I
[04:43] recommend leaving it in single asset mode, because if you select multiple assets, you also run the risk that if the price is not in your favor, all the assets you have in your futures wallet will be liquidated. So we'll
[04:56] leave it in single asset mode to minimize risk. Just below these labels you will find your available balance. To fund your futures wallet, tap on your balance and on this screen you can
[05:10] transfer from your other Binance wallets to your futures wallet. You should have already sent funds to your Binance account and converted your local currency to USDT. I'll leave a video in the
[05:24] description if you don't know how to do it. Once you have USDT in your spot wallet, here you just need to select how much USDT you are going to allocate to your futures wallet, by placing the amount in this section. In my case, I'm going to
[05:38] choose the maximum amount and then we'll confirm the transfer. With these simple steps, our available funds will appear and we can now start opening positions. Next, we will have the option to
[05:52] choose the type of order that will be executed to open our position. And depending on the type of order you choose, these fields below will change because each order has its own particularity. I'll
[06:06] leave another video in the description where I explain the different types of orders in more detail. Although there are more types of orders in futures than in spot N, you'll surely get a very good idea of how they work. Another option is to
[06:20] tap on the information icon that appears on the left side of the order you choose. There it will briefly explain how it works. This will depend on your own strategies, but for now , for simplicity, we'll use the
[06:34] most basic order, the market order, which will be executed immediately at the latest market price of our asset, but with which you'll also pay video in the description I also explain this topic of commissions. A
[06:49] little further down we will find two extremely important options because they help us manage risk. The first one is the abbreviation for take profit and stop loss. This will allow us to establish from the outset how much
[07:02] we want to gain and how much we are willing to lose. For example, if , the price of Ethereum is at 2,495 USDT. In reality it's fluctuating, but let's say this is
[07:17] our opening price. If we open a long position, very importantly, if we go long, it means that we are betting that the price of Ethereum will rise. Therefore, we're going to take profits. Take profit when the price
[07:31] rises above our purchase price, which was 2,495 USDT. Therefore, in this box you will set a higher price so that your position closes automatically and you get your
[07:46] profits. On the other hand, the stop loss is the loss you are willing to accept if the price turns against you. Therefore, the value you place here must be less than your opening price. Remember that you
[08:02] won't always make a profit, and it's very important to establish from the beginning how much you want to earn, but also how much you can afford to lose if things don't go well. This way you will manage risk properly and
[08:16] allow you to build a trading strategy instead of opening positions randomly. But if you want to go a little further, you can select this section that says advanced. This message appears
[08:30] because I haven't specified how much USDT I want to open my position with. We'll I want to open my position with. We'll enter any amount, enter any amount, click again, and that's it. As you can see
[08:42] here, you can directly set a profit or loss percentage. If you click on the percentage icon, you will have additional options to activate your take profit. Instead of a percentage, you can choose
[08:55] NLP, which stands for profit loss, and directly enter the price at which you want to close your position. On the other hand, Roy means return on investment and is calculated with the following
[09:08] formula that you can see on screen. For example, if you invest 1000 USDT and close the position when the price reaches 1.00 USDT, then we have 10000 minus 1000, which was our entry price. The subtraction gives us 200, and
[09:25] divided by 1000 USDT, it gives us a return on investment of 0.20, or in other words , 20% profit. The option that says "compensate" or "distance" in the
[09:38] web version is the percentage change in the total price of your asset. For example, in my particular case, if I enter 10, I am telling it that I want to take profits when the price of Ethereum rises by 10%
[09:55] from now on. Therefore, each of the options will work differently. Personally, I like to use return on investment. because I can clearly state how much I want to earn as a percentage. I am
[10:09] therefore going to set a take profit of 20% and then you must choose whether when you reach that 20% profit you want to close your position with a
[10:21] market order or you want to set a limit order. The difference is that a market order will always be executed regardless of anything. The only catch is that you pay a slightly higher commission. This commission may vary, but it is usually
[10:36] commission may vary, but it is usually execute a limit order, especially when there is a lot of volatility in your cryptocurrency, but it pays a lower fee. Again, it can vary, but it is usually
[10:51] 0.02%. If you still have doubts, you can consult this short legend below to confirm exactly what will happen when you set your take profit values. Another
[11:05] important concept that we haven't seen is brand price. To explain, I'm going to step away from this screen for a moment, and as you'll notice, the real-time price of Ethereum appears on the right . It changes to red when it goes down and to
[11:19] green every time it goes up. This is the latest price and it is nothing more than the real-time price, as I already said. But just below, a little smaller, appears another price that varies slightly from the one above, and this is
[11:34] known as the brand price. Let's say it's a price set by Binance to decrease volatility. As you can see, it changes less frequently than the last price. Let's say their goal is to smooth out some of
[11:49] the abrupt price fluctuations when there is too much volatility. Then, going back to the advanced take profit and stop loss menu, you can choose whether you want them to be executed taking into account the
[12:02] mark price or the last price. I'm going to leave the brand price selected and I'm also going to choose a return on investment percentage to set that I'm aiming for a 20% profit. And I'm going to leave the market order selected
[12:16] so that the position closes as soon as it reaches that 20% profit. For my stop loss, I will likewise select the return on investment percentage, let it run at the mark price, and set a
[12:31] mark price, and set a percentage of 8%. Notice how it automatically goes negative, because I'm telling it that if the price drops to 8% below my entry point, it should automatically liquidate my
[12:45] position to protect me in case the price continues to fall. So we click on confirm and that's it. We have successfully set up our take profit and stop loss. Now, let's remember that this example of setting
[13:00] take profit and stop loss assumed that we opened a long position, but do video that you can also make money even when the price goes down? This is achieved by opening a short position. What 's the difference? Okay, when we open
[13:16] a long position, we are betting that the price will rise and therefore we will take profits. if that happens. However, when opening a short position, the roles are reversed. We're betting that the price will go down.
[13:31] Therefore, we will only take profits if the price goes down. But if we are wrong and the price of our asset rises, then we will be in losses. That's why
[13:43] advanced options for our take profit and stop loss, you'll have two options did was planning to open a long position, but if we move to the second tab, planning now to open a short position, let me put the
[13:59] same values we had in the previous example, 20% and 8 loss. Very good. Notice now how it tells us that we will take profits when the price falls to this amount and will activate our stop loss at a higher price to
[14:14] protect us from having greater losses if the price continues to rise. That's why it's important to define our strategies to try to predict whether it's better to go long or open a short position. I'm going to hide this
[14:29] menu to show you the option below called Reduce only. This option ensures that the order only decreases or closes an existing position. For example, let's assume you open a long position on
[14:43] assume you open a long position on Ethereum at a price of $1,800. Then you place a limit sell order using this reduce only option. If your long position closes in another
[14:57] way, that sell order you had scheduled at $2,000 will be executed as a new short position, so you will have opened a new position, but in the opposite direction. This can be dangerous if what you wanted was
[15:11] simply to exit the market and not open a trade in the opposite direction. On the other hand, with the "reduce only" option selected, Binance will simply apply the sell order, but without opening a new position. This is very
[15:25] useful to avoid accidentally opening an opposing position. Here it depends on how you manage your own risk, so use these options wisely. At the bottom, your open positions and
[15:38] pending orders will be displayed. And if you unfold this small arrow, you'll be able to see your asset's chart in real time. But if you want to feel more pro, you can go to the top right of the screen and click on
[15:51] this icon with the Japanese candles. There you will find the chart of your asset in full screen, but you will also have some interesting features such as the possibility of using technical indicators such as an exponential moving average,
[16:06] such as an exponential moving average, Bollinger Bands, RSI, among many others. At the bottom of the screen, if you click on the three dots , you can customize some preferences such as the currency to show
[16:19] the price equivalence, appearance, among other things. But also at the bottom you will have the option to schedule price alerts so that Binance sends you a notification when your asset reaches a certain price.
[16:33] For example, I can program it to notify me when Ethereum drops to $2,000 and click the yellow button. And with that, the application will notify us when the price drops to this amount. Let's return to the previous menu, and generally in
[16:49] futures trading, more precision is required when viewing the chart, especially if you use very high leverage, since any price fluctuation, however small, will cause your profits or losses to vary
[17:02] significantly. That's why you might want to look at the chart in 1- to 5-minute intervals. This will also depend on your strategy, but I recommend using the one- minute interval. Those would be the most
[17:17] interesting features. I won't go into every detail so as not to make this video too long. Just to let you know that in addition to the chart, we also have an information section about this cryptocurrency where you'll find the price,
[17:30] market capitalization, official links, and so on. It also includes some trading data such as the ratio of long to short positions, which may help you explore trends, as well as direct access to Binance Square, which is like
[17:44] Binance, to find out what's being said about your cryptocurrency at the moment . Let's go back to the main futures menu and right next to the Japanese candlesticks you'll see this icon. This is a very
[18:00] own calculations before opening any position. For example, if you plan to open a short position with 10x leverage, you select the price where you want to open your position,
[18:13] price where you want to open your position, let's assume 2500 USDT. Let's remember that we're talking about Ethereum and we want to close this position at we want to close this position at 2,450 USDT with a capital of 100 USDT,
[18:29] sorry, 100 USDT. We click on calculate and it tells us that the initial margin or minimum amount of funds I need to open this position is 10 USDT. Because we are using 10x leverage, we would have a
[18:45] profit of 2 USDT, which in turn represents a 20% gain. Then, you will also have other options to calculate your target price to obtain a certain percentage of profit. You can also find out your
[19:00] clearance price using a margin, either isolated or cross. At this point, it would be a matter of exploring this section, but it's a great tool when it comes to simulating your inputs and outputs. Finally, I'm going back to the
[19:15] main menu, and the icon with the ellipsis on the right will display multiple other options to access your preferences, order history, and more, but what I would highlight most here is the possibility
[19:28] of accessing a futures simulator by clicking on this option. This is essential to start practicing and trading futures without putting simply going to follow the instructions. We click on confirm. It
[19:43] 's really very intuitive. And as you can see, it already tells me here that I have this amount of USDT available in my futures wallet. Of course, this is a fictitious amount that you can bet, spend, or
[19:57] invest as you see fit, trying different strategies to determine which one would yield the greatest profits. You have virtually the same options that we've been exploring throughout the video, except that here both
[20:11] your losses and gains will be fictitious. So if you're a beginner, I highly recommend starting with this simulator. And to return to the previous interface with real money and real profits, simply
[20:23] click on this part that says "return to live trading". We click on accept and that's it, we're back. Something that not many people know is that it offers a simplified interface and we can access it from the same
[20:38] menu in the upper right corner in the ellipsis and by selecting the easy operation mode at the bottom . It is a simplified interface, allowing the use of leverage and the opening of
[20:54] short and long positions, but without so many complicated configurations. Of course, I recommend that you familiarize yourself from the beginning with all the options that classic mode offers so that you learn everything you
[21:06] need to know. Now that we know how to use the interface, as well as the different options to minimize risks, let's get to the practical side. I have already configured my margin mode to be isolated instead of cross-margin so as not to
[21:20] jeopardize all the funds I have in my futures wallet. This way, I would only risk the amount with which I open my positions. I set a leverage of 10x, which means I can open a position 10 times larger than my
[21:34] initial capital. I currently have 21.20 USDT in my futures wallet. However, I'm going to open a position with 100 USDT. This is entirely possible because if we look at the bottom where it says cost, it shows
[21:51] 9.93 USDT. approximately, which would be the amount of real funds I should have in my futures wallet to be able to open this position. If I were to place, for example, 1000 USDT, it would no longer be possible because I would need to have 100
[22:06] USDT in my futures wallet. Therefore, the amount shown here where it says cost is what you should have in your futures account. I'm going to leave it at 100 USDT. And in fact, before opening any position, we need to
[22:20] know the current situation of our asset, in this case Ethereum, with a market price of approximately 2,460 USDT. Let's quickly review the section of the chart where we'll get a better
[22:35] idea if we use some indicators. I'm not going to go into detail, and it's certainly worth mentioning that I'm not responsible for your transactions, but I will at least show you the basics so you have a good
[22:47] idea of what you can do. At the bottom you will find several technical indicators that will help you predict price behavior. Of all these, we will use two that are very basic. The first one is this one that
[23:01] says EMA, which is an exponential moving average . By default you see three, but we'll change that in a moment . The other one is the stochastic RSI, the one shown here. Before I explain how it works, I'm going to
[23:15] set the moving average value. This is done by clicking on this icon in the upper right and then going to the section that says indicators. In this case we are going to configure the EMA or the exponential moving average. For this very
[23:29] simple example, I'm going to select only an exponential moving average . But I'm going to set it to 200 periods. Let's go back to the chart and as we can see, at the top there is this 200-period exponential moving average,
[23:44] which will show us the current market trend. In this case, and as we will be able to observe over time, it has already shown a downward trend. Here the price was still moving sideways, but what
[23:58] interests us is the current behavior. In this case, the price is below the moving average, which indicates that at this time it would be more convenient for us to open short positions to go with the trend and not
[24:12] against it. On the other hand, the stochastic RSI that we have at the bottom will indicate when the price is oversold or overbought. As you can see, it's practically a natural thing when the
[24:26] stochastic indicator is at the top. A price drop is almost imminent, and vice versa; when the indicator is at the bottom, it is also accompanied by a
[24:38] price rise. Therefore, the more indicators we combine and are able to interpret, the greater our chances of correctly predicting price behavior . Right now
[24:50] the price seems to be moving sideways and will probably go up very soon. However, we're going to do this exercise in favor of the trend and we're going to start by opening a short position. Ideally, I would wait until the
[25:05] stochastic RCI is at its upper limit, as this would anticipate a price drop. But let's start with the example anyway. Okay, we already know we're going to go short. Now what we need to do is program
[25:18] our take profit and stop loss. Let's go to the advanced section. Let's put the 100 USDT here. Then we'll move on again. We switch to the short tab or short position and again I'm aiming for a
[25:34] 20% profit and I'm willing to accept an 8% loss. This will of course depend on your own strategies, but it is always advisable to have a profit or loss ratio greater than two. And why greater than two? Because
[25:49] that way, if you make 10 trades and are only successful in half of them, you would still be in profit. But again, this depends on how you want to manage your risk. We click on confirm and with that we program
[26:04] our stop loss and take profit. Once this is done, we simply click on the red button to open a short position. Since we placed a market order, our position will open instantly, and we can see that at the
[26:19] bottom. Two will appear in open orders. These orders are simply our take profit and stop loss, which are generated automatically when opening the position. But our open position actually appears on the
[26:33] left side, right here in this menu that says positions. And as you can see, it will show you several interesting facts. At the moment the price is moving sideways, in fact we have almost no profit or
[26:45] loss, we are practically at zero. And on the right side it will show you the return on investment. Remember that since we programmed a take profit, this position will close automatically if the percentage Roy mentioned reaches 20%.
[26:59] But if our prediction is wrong and this percentage drops to 8% or more, our position will also close automatically because also close automatically because we programmed an 8% stop loss. All of
[27:12] this is already set up and you don't have to do anything else. That's why it's so important to always use a stop loss and a take profit. But also, if for some reason you forgot to program your stop loss and take profit at the
[27:25] top when opening your position, you still have the option to program them once you open your position by clicking here. As you can see, this is exactly the same menu we saw a
[27:38] few moments ago. However, I recommend setting your take profit and stop loss from the start. The button on the left allows you to adjust the leverage level you have used. For example, I
[27:50] set it to 19. The only downside is that if you want to reduce it, that's not possible and it doesn't allow it because we're using an isolated margin mode. Therefore, I recommend you be careful in this part. We're just
[28:04] doing an example right now, but it's for you to keep in mind. On the other hand, you also have the option to close this position by clicking on this part here. At the moment I have approximately -5% and that is because
[28:17] the price, instead of going down, has been rising slightly, as we can see in this part here. The mark price, as you can see, is at 2,457, but our entry price
[28:30] was 2,452, that is, it was lower, but since our position was short because the price has risen, we are instead in the red. I'm going to close this position now
[28:43] so we can do an example with a long trade. Here it tells you what your estimated gains or losses are, which appears as NLP or profit and loss. which appears as NLP or profit and loss. In this case it would be -.20 USDT. We will
[28:58] accept that loss and with that we have closed our position. Although I could also have left it like that until it reached -8% or +20% so that it would close
[29:10] automatically with my take profit or stop loss. Now we're going to do the same thing, but this time in the opposite direction, that is, we're going to go long or bet that the price will go up. Let's choose a leverage of
[29:25] 10x again and open the position with 100 USDT or even more, maybe 150, which requires an initial cost of 14.92 USDT. Remember that this is the amount you need to have in your
[29:38] futures wallet to be able to open this position. Let's say this is the amount you're risking, and if you don't set a take profit or stop loss and the price doesn't go your way, let's say you would be
[29:52] losing these 14.93 USDT. So, to prevent that from happening and to protect ourselves against a price drop, we're going to choose our take profit of 20% and a stop loss of 8% again. We're going to confirm, but
[30:09] this time we're going to go in the opposite direction and bet that the price will go up. So we're going to click on long to open a long position. Our open position will appear again at the bottom. And
[30:23] now, as the price rises, our profit will also rise. But if the price goes down, we'll be in the red. We have exactly the same functions. On the left side, our entry price of 2,462.24
[30:37] entry price of 2,462.24 and the current price or brand price at something important that I don't think I mentioned in the previous example is the liquidation price, so that if we hadn't programmed a
[30:52] stop loss, it would liquidate our position if the price of our position if the price of Ethereum reaches or falls to 2,23.67. If that were to happen, we would be losing the 14.84. 84 USDT,
[31:07] which is our margin price shown in the center. Again, the entry price is the price at which you bought your asset and at which the position was opened . The brand price is the current market price, although slightly
[31:21] that we already saw that difference a moment ago, but let's say it's the current market price. The margin is the amount you are betting from your futures wallet. If you don't set a stop loss and the price moves
[31:35] against you, you could lose this total amount. And the liquidation price, let's say, is the price at which your position would close if you didn't set a stop loss, and therefore you would be losing your margin. It's also
[31:48] several positions open at the same time, although if you're just starting out, I only recommend having one position open at a time. And another important thing to keep in mind is that every time you open and close a
[32:01] position, Binance will charge you the corresponding commission. So consider it in your operations as well. Also, when closing your position, you can choose whether you want to liquidate it completely or only close
[32:15] part of that position, leaving another part still invested. For example, here I liquidated 50%, but the order is still open with the remainder and you can verify this because the margin has decreased by half. With this you already
[32:29] have the essentials to start investing in futures trading, but always remember to take into account, in addition to technical indicators, the latest market news. Get properly informed and create your own
[32:41] strategies that work best for you. Remember that you have this simulated trading option to start trading safely. If you found this information like and subscribe to the channel to continue learning.