Binance Futures 2: Transfer funds and Position opening

A continuation of my binance futures series, part 1 covers the user-interface of the binace futures.

This article covers the transferring of funds from spot wallet to futures coin-m wallet and the steps on how to enter a position.

How to transfer funds to Futures Coin-M wallet?

In our Binance wallet, there's a separate wallet for spot and futures. So to start trading using futures, we first need to transfer funds from Spot wallet to Futures wallet. Here's how:

• 1- On your Binance (Mobile) click the Wallet below.

• 2- Choose the Futures above

• 3- Click Coin-M, we are transferring BCH to trade BCH as margin in futures.

• 4- Click the transfer button

• 5- Choose BCH, or if you wanr other coin as your margin, tap here

• 6- Enter the amount you want to transfer or tap on max to transfer all from spot to futures wallet.

• 7- After checking the details, click Transfer.

Now our transfer has been successful, We can now start to trade using our BCH as our margin in futures. 😉

How to a enter position?

This guide is to show the steps on how to enter a position in a Coin-M futures. To learn on when to enter, study first the movement of the coin you want to trade, in this example the BCH. Do your own research regarding technical analysis tools for better decision upon when to enter.

• 1- The first thing to check is the pairing, in this example it shoud be BCH/USD

• 2-Then set your preferred leverage and margin mode. Visit the Series 1 to know the difference between the two modes. Take note that the higher the leverage, the higher the risk.

• 3- I chose limit in this example. It means the trade position will be executed once the limit price I entered will be reached. Refer to Series 1 for difference between limit and market order.

• 4-Enter your preferred entry price in Limit mode. In Limit mode, you can type here your preferred entry price. If you are in market mode, this area not included.

• 5- Type here how much Contract you will use as your margin. To know how much the contract will cost your BCH, check the Cost above the Long and Short buttons.

• 6- If all of the above are all set, Click Long or Short to start the position. Choose Long if you predicted that BCH price will go up and choose Short if your prediction is that the BCH price will go down, in relation to your entry price.

After Clicking the Open Long button, your position will go to Open Orders tab below. It will stay here until the price reached your desired entry price.

In the event that it was reached, it will go to the Positions tab. Take note of the Liquidation Price and set your stop loss and take profit.

Here's an example of an open position:

You can monitor here if your position is gaining or losing. The unrealized PNL will be shown in the middle, the BCH amount and the percentage gain/loss. If it is green, it means it is ganing, if red it means it is losing.

Take note of liquidation on the right side. It should be far from the mark price to make your position safer. If you are in isolated mode, you can add margin to increase the gap between liquidation price and the entry price. If you are in cross margin mode, just like in my example above, I just need to transfer asset to my wallet and the liquidation price will be adjusted.

Risk management

Cryptocurrencies is highly volatile. When trading with Futures, take into considerations to manage the risk properly by setting stop loss, lowering leverage and entering a margin that is just a percentage of your overall assets. Avoid placing all of your fund in a single position.

Also do some research on when to enter a position, try to learn to use some tools to enhance your analysis and to properly read the candles in the chart.

We can take advantage the volatility of cryptocurrencies by proper usage of futures trading. There is a higher potential to earn big amount if we predicted and entered a position properly. Of course, the potential to loss is also equally high as the gains. To avoid this, don't forget to follow your risk management strategies. 😊

If you don't have a Binance account, you can use my referral link here and have a 10% commission kickback rate. 🥳

Stay tuned for Part 3😉

#TradeSafely 🦾

Take risk only if you can afford to lose, don't use money with intended purposes. Do your own research before engaging, risk is always present.