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Full explanation of how to use Binance Futures, fees and features, and differences from BitMEX

Binance is a cryptocurrency exchange based in Malta, one day 12 Hundreds of transactions, 1 second 140 A world-class exchange with over 10,000 transactions.

Binance started handling Bitcoin's Perpetual Futures Contracts in September.

This page compares Binance Futures (Futures Trading) with how to start and how to use BitMEX I will explain .

Binance regularly conducts campaigns for users. This time 9 / 21 of13 Users who have activated their Binance Furtures account at most 20 You can receive USDT for the campaign.

# Binance Futures Launches 200, 00 0 $ USDT Welcome Bonushttps: //t.co/zN4hTpX7kI pic.twitter.com/rDheKem29 S

Binance (@Binance) September 20, 2019

See the Binance article.

* Note: BitMEX handles both general futures contracts and indefinite contracts, but in this article we will only explain and compare indefinite contracts.

Binance Futures specifications ・ Comparison with BitMEX

Before explaining the specific registration method and how to get started, let's first confirm the information on futures transactions provided by Binance and BitMEX .

BitMEX Binance
Handling currency XBT (BTC) / USD

ETH / USD
BTC / USDT
Margin BTC USDT
Maximum leverage XBT (BTC) / USD: 100 times

ETH / USD : 50 times
maximum20 times

Binance offers Bitcoin (BTC) only, BitMEX offers BTC and Ethereum (ETH) two indefinite futures. One of the differences between the two companies is that Binance uses USDT and BitMEX uses BTC as margin.

Also, the leverage rate is different. BitMEX XBT (BTC) / USD maximum 100 times, while Binance is 20 is the upper limit. Please note that the degree of risk varies greatly depending on the amount of leverage applied.

Regarding volume, Binance is 24 About time 25, 00 About 0 BTC (at the time of writing the article), but BitMEX is 228, 00 There are about 0 BTC .

BitMEX's volume is as expected, but Binance is within one month from the start 10 There is a momentum to catch up to about a minute.

Binance is also available in the physical margin market 32000 BTC 24 It is worth noting that it boasts time volume.

Then, after confirming the differences in basic specifications, let's also look at fees and UI / UX differences .

Binance Futures is overwhelmingly cheap!

Binance and BitMEX There are significant differences in the fees that are incurred in transactions.

Here, we will compare the manufacturer fee (pay by the person who sets the order price; limit price) and the taker fee (pay by the person who orders at the closest price to the market; the outcome) of both companies The

This is the BitMEX fee.

Brands Maker fee Taker fee
BTC (XBT) -0.0 25% 0. 075%
ETH -0.0 25% 0 . 075%

Binance is the commission of Futures.

level Maker fee Taker fee
VIP 0 0. 02% 0. 04%
VIP 1 0. 018% 0. 04%
VIP 2 0. 016% 0. 04%
VIP 3 0. 014% 0. 04%
VIP 4 0. 012% 0. 038%
VIP 5 0. 01% 0. 034%
VIP 6 0. 008% 0. 032%
VIP 7 0. 006% 0. 028%
VIP 8 0.0 04% 0. 023%
VIP 9 0% 0. 02%

Binance Taker Fee Has become a half of BitMEX, it will be that the people of Binance is cheap.

On the other hand, the manufacturer fee for BitMEX is set to minus.

This means that if you place a limit order, the fee amount will be returned as a bounty , giving you an incentive to the limit order This promotes price formation that matches the demand and supply of investors.

Binance fees are getting cheaper as the VIP level of the account goes up, the manufacturer fee is free at the highest level, and the taker fee is 0. 02 %.

In addition, in Binance Futures, September 13 For three months from the date, Fee is 50% discount.

Therefore, BitMEX is more profitable for manufacturer fees, but Binance is much better for Taker fees. It is cheaper.

Binance Futures is easy for Japanese people to understand!

Binance UI / One of the advantages of UX is that it is friendly to Japanese people compared to BitMEX.

Especially, How to order is similar to Japanese crypto asset exchange “ BitFlyer '' (The specific ordering method will be explained later To do).

When placing an order, Binance Futures should specify the number of BTC as with BitFlyer

However, in case of BitMEX, it must be specified in US dollars instead of the number.

From the Japanese point of view, the dollar-specified order may be a source of confusion.

Pay attention to margin maintenance rate and forced loss cut!

Evidence of Binance Futures Explain the rules for gold retention and forced loss cut.

Basic margin + ② Realized gain / loss (3) Compulsory loss cut will be applied if the unrealized gain of the currently held position falls below the continuation margin.

In Binance Futures, the basic margin maintenance rate and the continuous margin maintenance rate differ depending on the size of the position.

The basic margin is calculated by the amount of the position × basic margin maintenance rate, and the continuation margin is calculated by the amount of position × continuous margin maintenance rate

The table below shows the position size, IM Rate (basic margin maintenance rate) and MM Rate (continuous margin maintenance rate)

level Size of position (nominal) IM Rate MM Rate
1 0-500, 00 0 Five.00% 2. 50%
2 500, 00 0-2, 00 0, 00 0 10. 00% Five.00%
3 2, 00 0, 00 0-5, 00 0, 00 0 15. 00% 7. %
Four Five,00 0, 00 0-10, 00 0, 00 0 20. 00% 10. 00%
Five 10, 00 0, 00 0-20, 00 0, 00 0 25. 00% 12. %
6 20, 00 0, 00 0-35, 00 0, 00 0 30. 00% 15. 00%
7 35, 00 0, 00 0- 60, 00 0, 00 0 40. 00% 20. 00%
8 60, 00 0, 00 0 more than 50. 00% 25. 00%

This is difficult to understand.

20, 00 Let's say you have an investor who wants to have 0USDT worth of positions. Since this investor is investing for the first time, the profit / loss (realized profit / loss) generated by the previous investment is 0.

20, 00 If you check the margin maintenance rate in the table when you have a position of 0 USDT, 500, 00 Since it is 0 or less, it means that you should look at level 1.

Therefore, the required basic margin is 1, 00 0USDT (20, 00 0USDT × 5%), continuation margin is 500 USDT (20, 00 0USDT × 2.5%).

That is, after having a position, the price will be 19, 500 Minus

There was an unrealized loss of USDT, and this investor You will receive a forced loss cut.

Binance A thorough explanation of how to use Futures!

Binance Futures specifications-After confirming the difference from BitMEX, transaction preparation and actual I will explain how to trade.

The general flow is

  • Deposit a currency such as bitcoin
  • Exchange to USDT at the spot market
  • Opened “Futures Wallet”
  • Transfer USDT from Exchange Wallet to Futures Wallets
  • Transaction start

Get ready to start trading

First, go to the Binance top page and log in.

If you haven't registered Binance yet, please register. How to register is explained carefully in the following article.

[Latest Version] Summary of how to register and use Exchange Binance!

Binance Futures requires USDT as margin. If you don't have USDT, first make your crypto assets (BTC, ETH, etc.) to USDT on Binance or other exchanges.

When you are ready to start Binance Futures, select the “Futures” item on the My Page screen.

The chart screen is displayed.

We will actually start trading, but in Binance, the wallet is different for spot (Exchange) and futures (Futures). Therefore, it is necessary to transfer the USDT that you have in the Exchange wallet to the Futures wallet.

To transfer USDT to the Futures wallet, click Transfer at the bottom right of the chart screen, at the end of the order screen.

From the Transfer screen, select “Exchange Wallet” You can specify how much money you want to send to “Futures Wallet”.

Enter the number of USDTs to be transferred to the box labeled “Amount: Type your amount” (light blue part of the image below). The box in the pink part of the image below shows the number of USDT you currently have.

How to hold and close the position

Let's actually place an order.

When placing an order at the limit (Limit), put the amount you specify in “ Price” Enter the amount of currency to order in the “Order Qty” field.

Finally, select whether you have a position in long (Buy / Long) or short (Sell / Short). A confirmation screen will appear.

If there is no problem, select your position (Buy / Long here) and the order is complete.

You now have a position.

Details of your position are summarized below the chart.

Items of interest
Symbol: Contract type

・ Size: Position size

・ Entry Price: Order price

・ Liq. Price: Amount for mandatory loss cut (the price at which the USDT balance becomes 0)

or “Close Position” In the column, you can see that there are two buttons, “Limit” and “Market”.

Both are buttons that close (check out) a position by placing an order opposite to the one you ordered.

“Limit” allows you to specify the price to close the position. On the other hand, if you press “ Market”, you can close the position. If you want to close a position for anything, you can select this Market.

Summary

The above is an overview of Binance Futures and how to use it.

Binance Futures was characterized by lower taker fees and easier to understand trade chart screens than BitMEX.

The volume is not as high as BitMEX, but it is highly likely that it will become popular in the future due to the advantages of fees and brand names.

I hope this article will help you get started with Binance Futures.

Author: shimada – Source Post: http://destyy.com/w4CQ9s

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