IX.17. Margin futures trading. Risk management.

When trading futures, BINANCE gives shoulders from 20x-125x. It is usually recommended to use a shoulder of no more than 10x.

However, this does not mean that if you have $ 10 of your own funds, then you should buy futures for $ 100, because when the price moves against you, the loss is deducted from your own funds. From our experience, an acceptable purchase level is 2.5x of the amount of funds in your account. This allows you to sit out very significant drawdowns without any harm and adding funds to the account.

When creating an application, BINANCE will usually immediately indicate to you the planned liquidation price, depending on the availability of funds in your wallets.

When choosing an isolated margin, you risk only the money involved in a particular transaction.

When choosing a cross margin, you will use all the money in your BINANCE accounts, except for the Replenishment account. Thus, the basis of risk management when trading futures on BiNANCE is either a 2.5x leverage, or placing stop-loss orders that exclude the liquidation of the account.

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