Binance launched its futures trading platform last year, but it has already become one of the largest exchanges that trade Bitcoin futures. Due to the popularity of Binance in the cryptocurrency space, speculators always want to learn how they can carry out futures trading on the platform.
When trading futures contracts, you can either short or long an asset. Binance supports the trading of these assets with leverages. However, the biggest question is how to long bitcoin with leverage on Binance futures. This is what we would address in this post.
Longing Bitcoin with leverage on Binance
Learning how to long bitcoin with leverage on Binance futures would help you navigate the platform easier and make profits. When you open a long position, it means you agree to purchase Bitcoin in the future at a certain price on the day the contract expires. When you use leverage, it means you are staking certain collateral, which allows you to trade with more than you have.
Steps to Long Bitcoin With Leverage on Binance
For Binance, the exchange allows the use of leverage up to 125X when trading Bitcoin futures. If you wish to open a long position on Binance using leverages, then follow the following process:
- Visit the Binance platform and register with them. If you are already a registered trader of the Binance platform, then you can log in to your account.
- Navigate to the Binance dashboard and find the ‘FUTURES’ tab and click on it. Click on Futures again to access the Binance futures platform.
- If this is your first visit on the futures platform, you need to activate your Binance futures account before you can start trading Bitcoin futures on the platform.
- Since Binance supports other crypto futures, choose the BTCUSDT ticker on your futures platform.
- Since we are using the USDT, you need to transfer funds from your regular Binance account to the futures account. You are not loading it in BTC because the contracts on Binance are perpetual swaps instead of inverse perpetual swaps found on other exchanges such as BitMex. Thus, the contracts are getting settled in USDT instead of BTC.
- After funding your account, you can choose the leverage you wish to use on the Binance futures platform. At the top of the site, you will see a sign of 20X displayed, which denotes the leverage. Click on it and adjust the leverage to suit your trading style.
- After that, click on the Buy/Long button on the bottom corner of the site. The margins required for Bitcoin futures trading on Binance depends on your BTC order quantity. Hence, you have to ensure that you have the USDT margin required on your futures trading account before you place a long position on the platform.
- We advise that you set the stop-loss and take-profit limits since you are dealing with leverages. The stop loss-limit helps reduce the losses when the market doesn’t go your way while the take-profit limit allows you to go with your profits if the market is performing as expected and you don’t want to ruin your trade.
If you follow these steps, then it would be easy to long bitcoin with leverage on Binance futures.