What is Binance futures?

Binance Futures provides a test mode to trade futures for those who want to practice before starting a live mode cryptocurrency trading. The Binance exchange provides a Tier system with nine levels. Your trading fee level is 0 by default.

How much leverage do you need to trade Binance futures?

Whenever you use leverage, remember that both your profits and losses can be greatly amplified depending on the amount of leverage that you take. Binance futures allows you to trade with leverage of up to 125x. However, if you want, you can trade it for as low as 1x, which is equivalent to the value of your collateral.

What are futures and how do they work?

Futures or futures contracts are trading instruments that can also be applied to cryptocurrency trading. A futures contract is an agreement between traders to buy or sell assets at a predetermined price and at a specific time in the future. The following example illustrates the way futures work.

What is deposited collateral in Binance futures?

In Binance futures, you can opt for either cross margin or isolated margin. For the former, your deposited collateral is used to fund positions on all the different futures contracts that you have bought. On the other hand, with the isolated margin mode, your deposited collateral is used to fund specific positions that you open.