How to Place a Binance Futures Trade — Step-by-Step Guide & Transcript

[00:00] in this video I want to show you how you can be able to place a futures trade in the last video that we did I explained to you why you should think of getting

[00:13] into Binance futures and in this video I want to show you how you can be able to place a trade on Binance futures let's get us credit roll

[00:25] When you log into your Binance, it will actually bring you to the homepage. That's what you're seeing on the screen right now. It will give you the normal prices at the start of the day.

[00:40] So this will be different depending on when you actually watch this. What we are going to do is we are going to fund our wallet through P2P. That's where we need to start from. So just at the top here, you'll see P2P trading.

[00:54] that's what we'll click on it will actually take you to where you can buy your usdt or you can buy busd depending on which is more affordable so in my case at the time of recording this video rate

[01:08] is at 116.78 that's the cheapest and then the busd is 117.75 for the cheapest click on the very first one that's where i want to buy there are two ways of buying crypto so the first is buying by fiat

[01:25] meaning the amount in kenya shillings so you can place here this person that the lowest is 5 000 shillings or you can just place in by crypto where now you state how many usdt you want so in our

[01:40] case I want to buy 100 USDT that's what I'll key in and the amount to pay will be 11,678 that's what I need to send to this person. I'll click on buy with zero fee. Once I do that it will bring me

[01:58] the personal details of this person which I'll not show on the screen right now but I'll follow the process. Here it will show me the name of this person and how much I'm buying in terms of fiat

[02:14] it's 11,678. Once we have received this we'll click under wallet and you'll be able to see the amount under funding wallet. Now that it is under funding wallet what we need to do next

[02:30] is to click on transfer from funding to spot wallet and then where it says btc click on that and then we'll click on usdt so that we move it to our spot wallet this is very simple once that

[02:47] is done i'll go under spot wallet and i can actually be able to see the usdt that we have just bought now on the spot wallet. The next thing that we'll actually do here is go under

[03:01] features so that we can be able to now place a futures trade. So there are four different aspects of futures and in this one we'll just handle one. There is USDM there is CoinM futures there is options futures and there is battle futures The next thing that you see here is this is a perpetual contract The percentage that is showing here is

[03:25] the difference in yesterday's price 24 hours ago and the current price. Just below that you'll have either an isolated trade or a cross trade. So what is a cross trade? It says a cross margin trade,

[03:39] all cross positions under the same margin asset share the same asset cross margin balance. In the event of liquidation, your asset's full margin balance along with any remaining open positions under the asset may be forfeited.

[03:55] Isolated margin, the margin is assigned to a portion and is restricted to a certain amount. If the margin falls below the maintenance margin level, the position is liquidated.

[04:07] However, you can add and remove margin at will under this method. Usually, I use the cross margin. That's what we'll actually use here. Just next to it, there is a 20x.

[04:20] So, we'll click on that. It shows me that I can leverage. Leverage, remember in the previous video, we said leverage is borrowing. So, if I go into this trade with $10, then if I leverage 20x, it will be 20 times $10.

[04:35] So it will be like I have gotten into a trade with $200. The $200 will be my first position. If I gain profit, it will be 20 times the profit depending on the percentage increase.

[04:48] If I'm losing, then it's 20 times the risk as well. I usually select less than 10%. So we'll actually use 5x. This means that whatever amount I place into the trade will be 5x.

[05:03] So I'll show you what that means. Then click on confirm. Then just next to the multiplier, there is an S. So we'll click on it. And then this is either single asset mode or multi-asset mode.

[05:16] So single asset mode is the default. It says supports USDM futures trading by only using the single margin asset of the symbol. Profit and loss of the same margin asset positions can be offset.

[05:30] supports cross margin mode and isolated margin mode. We have multiple assets mode. USBM features trading across multiple margin assets. Profit and loss can be offset among the different margin

[05:44] asset positions and it only supports cross margin mode. So this will just leave it at single asset mode that is much simpler to use. The next thing that we'll actually do here where it says buy sell

[05:59] just below that there is available and the amount here is zero usd but there is a two yellow arrows that are showing there that's what we'll actually click on because this now helps us to move money

[06:12] from our spot wallet to our usdm futures wallet for some of you it will show usdm needs to be activated so that's what you'll actually do but click on usdm futures will transfer the full

[06:26] amount here and click on confirm transfer. So what it actually shows us here is the available is now this amount of USD And then at the very top we want to do a trade on Bitcoin

[06:40] So we'll click on the currency pair and then I'll change it to BTC USDT. The next thing here is limit and the amount. Here you can be able to see the maximum here on 100x leverage would be 0.051 BTC.

[06:56] But 100x is really high. we'll turn this back to 5x. We can be able to trade a maximum of 0.002 BTC because we have 24 USD. What we'll actually do is if it is at limit 45378

[07:12] we can actually try and get in a bit lower so let's say we put in 50 and then we put in half of the amount not the full amount you'll be able to see the estimated liquidation price is 21,412. So this means that if the price moves from where it is

[07:31] now, where we are setting it now at 45,350 and it moves to 21,412, then I will lose my amount of 24 USDT. Then the maximum I can get here is 0.002 BTC. That's if I put in the full amount,

[07:48] but we want to put a portion of it. The reason we do a portion of the amount you have in USDT is so that your liquidation price can actually go down. So I'll show you an example. If I put the full

[08:00] amount in the trade, then our liquidation price will be at 33,481. If I put half of the amount, the liquidation price is 21,412. The less amount of money you place as a percentage of the total

[08:17] that you have in the wallet for cross actually gives you a better liquidation price you can still keep your money here we'll actually place it and it's actually even gone below where we had actually said so it seems like the price is going down a bit what we'll actually do is place 280

[08:34] and then click on tp so sl tp so sl means take profit and stop loss in order for you to be able to keep your money then you need to place a take profit and a stop loss we'll actually keep it at

[08:50] mark i'll actually do it after we have placed in the trade but what we'll actually do is click on buy long and then what it will actually do is it will place in an open order with the open order

[09:03] once the price reaches 45 to 80 in this case i can be able to have this trade move from an open order to our position. I'll show you with a position in place. Here we have our position.

[09:17] So what you'll actually see is the position open, the BTC USDT perpetual. It's crossed five times and then unrealized P&L in USDT. Here it will show you how much money you are losing from your

[09:32] position or gaining from your position. At the right there is ROE which is return on equity, what you've actually placed in the size of our position is at 0.001

[09:44] btc which currently at about 45 000 means one two it a position of 45 dollars that the position that we currently hold when we have placed in a trade of nine dollars you are actually placing in a position

[10:01] of five times the amount of money that you have and then you have the risk here this changes with time and depending on the ROE currently it's at 0.76 percent that's the risk of liquidation then

[10:13] It also shows us our entry price, 45,350. And the current price at the moment is the mark price, 45,312. And our liquidation price we saw was 21,413.

[10:26] So our stop profit and loss, what we'll actually do is click on it. I can actually place in the trigger price, what we want the take profit to be. So I can actually say if the price goes to 46,000, I'll have actually gained 0.64 USD out of the $9.

[10:45] Remember, I placed in $9 and I'm making almost $1 if it moves from 45,350 to 46,000. If I let this run up to 50,000, then if the price moves from 45,350 to 50,000, I'll actually have gained a P&L of 4.64 dollars.

[11:03] So that's my take profit of about 50%. That is what we'll place in here. And the second one is a stop loss. This actually helps you if you think the price is going to go down, you can actually place

[11:17] in a limit and we can actually say 45, 350 is where we got in. If it goes to 45,000, then we want to get out of that trade. What we'll actually do is click on confirm.

[11:29] It will place that stop profit as an open order. then you will actually have it here then the position here now we can actually be able to say if we want to close this position we'll actually click on it here i like to put a limit instead of

[11:45] market price click on limit and then you can see if it gets to 46 000 you have made this 0.64 but you want to close half of it not the full of it just click on that and then you can click on

[11:59] confirm in this case we'll just put a hundred percent click on confirm and it will close that position automatically when it gets to 46 000. those are things that you can actually be able

[12:11] to do with this particular futures trade something else that you can do here is to adjust the leverage remember for btc the maximum is 125 x but we don't want to go that far if you want to reduce

[12:24] the risk you can actually just place a negative just click on it click on confirm and then what it will actually do is it will pick some money from the available that you had and change the

[12:36] margin here the amount of money that you have placed in on the trade will actually be increased the liquidation price here remains the same and our roe currently is at break even we are just at

[12:48] the same price that we had bought so that is a simple way on how you can be able to place a futures trade on BTC on Binance. In this video that is showing on the screen I'm

[13:02] showing you how to place a spot trade on the Binance platform and I'll see you in the next one