Vice president Aaron Gong told Finance Magnates “We always wanted to be number one, however, I was expecting us to reach this goal in 12 or 16 months, but we made it in seven months”.
As of April 20th 2020, the title of #1 is officially theirs, as they set a new record with $295 million traded in a 24hr period.
So, why are people coming over to the platform in droves?
Leveraged Trading = Trade With Borrowed Funds...
Most crypto traders and investors have yet to dabble in the world of futures trading, but for those of you unfamiliar it's worth explaining the appeal and why lately, futures vs margin has left futures the winning trading method.
Exchanges offer 'leverage' which basically means, they'll loan you funds to trade with. In the case of Binance Futures you can get up to 125x what you actually own, so if you have $50 USD, they'll turn that into $6250 in tradeable funds, you'll pay a small interest fee.
Then imagine if every time Bitcoin gained $1 in value, you were earning $10 in profit. Leverage means even small price changes can be profitable, simply because of the amount you're trading with.
You'll basically just bet if the price of Bitcoin will go up (long) or down (short). If it goes your way, you're going to love it. But with borrowing all that money comes risk of liquidation. Let's say Bitcoin is trading at 8500, you put your funds on it going up (long)... but you were wrong, and the price starts to drop. You'll only be able to watch it drop to about 8450 until you're liquidated, which means you lost it all. The more leverage you use, the less room for error you get.
More conservative traders argue against the idea of trading with borrowed funds, and cite the risks that comes when someone feels the rush of a big win, and then loses it everything trying to make it happen again.
Increase Your Odds: Hedge Mode Released...
"You asked for it, and we had nothing else to do during quarantine" said Binance CEO 'CZ' as he announced the new 'hedge mode' feature on Binance Futures.
The new feature means users are now able to go long and short at the same time, both in the web version and Binance futures app.
So imagine, Bitcoin is trading at 9000 - you can go long with a stop loss of 8950 and short with a stop loss 9050 - so whichever one loses $50 first gets thrown out, hopefully leaving you with the one going in the right direction. Plus, at this point you've already broken even.
It's a chance to let the market decide if you're going short or long by doing both and keeping only the winner. A Binance Futures trick worth trying!
Reduce Your Fees, Increase Your Profits...
Unlock a 10% lifetime discount on all fees for your account, sign up via this VIP Binance Futures referral link. Or if using the mobile app, use referral code TradeVIP when joining.
This works even if you already have a normal Binance trading account!
Those Inside The United States: US citizens are unable to use Binance Futures. However, some non-US citizens simply visiting the United States will find themselves blocked even though they are allowed to use it. This is because of your IP address. In these situations, using a free VPN like this Chrome extension allows it to be used while you're visiting the US.
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Author: Adam Lee
Asia News Desk | Binance Futures Review
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