10 Most Frequently Asked Questions About Binance Futures

Key lessons learned:

  • Binance Futures has gathered 10 of the most frequently asked questions about the trading platform to help traders understand better.

  • These questions involve liquidation, leverage, stop-loss orders, and more.

  • Users can contact customer support team Or visit Binance Academy for more information about Binance Futures.

Cryptocurrency derivatives trading is gaining popularity among market participants worldwide. Hundreds and hundreds of traders are joining Binance Futures every day to take advantage of the opportunities cryptocurrencies offer. With over 29 million active users, many questions arise about how to trade on the leading crypto derivatives exchange.

Binance Futures provides access to the cryptocurrency market 24/7/365. Due to the flexibility that traders have to trade digital assets anytime and anywhere with the Binance app, many users have contacted us asking how to use the leading crypto derivatives exchange. world leader by trading volume.

So we created this blog post to answer “the 10 most frequently asked questions about Binance futures.”

1. Why can’t I transfer my existing margin from my Futures Wallet?

On Binance Futures, users can only transfer the amount of margin available for an order but no more than the wallet balance.

For Single Asset Mode in USDⓈ-M Futures:

Available for withdrawal = max(min(

  1. walletBalance – initial margin of differentiated open position – CrossPosition MM – borrowed amount – Interest rate – futuresPositionLimitOverdueFee,

  2. crossWalletBalance – initial margin of defined open position – crossPosition MM – borrowed amount – Interest rate – futuresPositionLimitOverdueFee,

  3. crossWalletBalance + unrealized ∑cross PNL – compounded initial margin – segregated open position initial margin – borrowed amount – Interest rate- futuresPositionLimitOverdueFee,

  4. crossWalletBalance – initial margin of open position is determined – crossPosition MM – gift amount – minimum (0, actual PNL) – borrowed amount – Interest rate – futuresPositionLimitOverdueFee

), 0)

For Multi-Asset Mode in USDⓈ-M Futures:

Available for withdrawal =max ( min (

  1. accountWalletBalance – accountMM – ∑ (borrowed amount + interest + futuresPositionLimitOverdueFee) * askRate,

  2. uniAvailableForOrder – ∑ (borrowed amount + interest + futuresPositionLimitOverdueFee) * askRate,

  3. accountWalletBalance – accountMM – (gift amount + min (0, (asset) realized by PNL) + borrowed amount + Interest + futures contractPositionLimitOverdueFee) * askRate

)0)

For Coin-M futures:

Available for withdrawal =max ( min (

  1. walletBalance – initial margin of the defined open position – CrossPosition MM – borrowed amount – Interest rate,

  2. crossWalletBalance – initial margin of the defined open position – crossPosition MM – borrowed amount – Interest,

  3. crossWalletBalance + unrealized ∑cross PNL – compounded initial margin – split open position initial margin – borrowed amount – Interest rate,

  4. crossWalletBalance – initial margin of open position is determined – crossPosition MM – gift amount – minimum (0, actual PNL) – borrowed amount – Interest

)0)

2. Why does the Liquidation Price change?

On Binance Futures, changes in wallet balance may affect liquidation price.

For example, when the user is located in USDⓈ-US and COINS-CODE Perpetual Futures, settled funding fees can make liquidation prices favorable or unfavorable depending on market conditions.

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Because Multi-asset mode, the liquidation price may change more frequently in Single Asset Mode as it is calculated on an all-assess basis. As the security’s price changes, so does the liquidation price.

3. Why can’t I reduce Leverage on one of the positions in Isolated Margin Mode?

On Binance Futures, users can only increase leverage in one position under Isolated escrow modewhile not allowed to reduce leverage.

4. Why I have enough margin but can’t increase the size of a position?

On Binance Futures, position size and open orders that the user can hold for the same symbol defined in Leverage and Margin Level Table. The larger the position the user wants to trade, the more limited the leverage.

Please note that custom location limits are supported via Position Limit Adjustment Page.

5. Why is TP/SL Order unable to close positions at the given price?

On Binance Futures, TP/SL order can be set as a limit order and stop market order. Both order types are triggered when the stop condition has been satisfied. But the execution price of market orders completely depends on market liquidity and depth as they represent a quick act of buying or selling.

  • There are two types of trigger for TP/SL command: Bookmark price and Last price. The default trigger type is Mark Price, which means that only when the Mark Price reaches the stop price, a TP/SL order will be executed. The reason most TP/SL orders cannot be executed at a certain price is because the trigger type and the price the user tracks is different.

  • The price protection mechanism can also affect TP/SL orders. When price protection is enabled, if the difference between the Last Price and the Mark Price of the contract exceeds the set threshold when the TP/SL order reaches the trigger price, the TP/SL order will not be triggered.

  • The market’s maximum order quantity trading rules are one of the reasons that can also cause TP/SL orders to expire.

  • The illiquidity of the market can have a serious impact on TP/SL orders. Market orders may expire or be partially filled due to Market order price limit ratio / floor rate, which is very common in extremely illiquid market conditions. When the Market Order Price Limit / Floor Rate exceeds the threshold, any unfilled market orders will expire.

6. Why is the Limit Order not executed at the preset price?

The common definition of a limit order is to buy or sell at the limit price or better. By definition, if the current Market Price is already better than the Limit Price set when the limit order was placed, the order will be executed immediately.

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Those who want a limit order to be activated only after a specific price is reached can consider a more advanced order type: Stop-Limit or Stop-Market orders.

7. Why Does a Stop Limit Order Expire Even though I Didn’t Cancel It?

On Binance Futures, if stop limit orders are placed to reduce holding positions, these orders may expire when: the user places a new order to close the position; failed to pass the second margin test; there is not a position just dropped; or when the position is liquidated.

The difference between Canceled and Expired order status is that User canceled the order manually, while Expired Order is canceled by the system based on the above mentioned conditions.

8. Why Grid Trade Expires Even If I Have Enough Margin?

Grid trading operates within the parameters that users set for their Binance Futures accounts, so there are many reasons why Grid Trading strategy may expire. Two of the main reasons why a Grid Trade order may expire even if a user’s Futures wallet has sufficient margin are listed below:

  • Manually placing or canceling an order of a symbol in Grid Trading will end the grid.

  • Once the user has set a stop price and the market price reaches the stop loss price of the set Grid Trading strategy, the grid will expire.

9. Why is the Stop-Limit Order not executed even after the Stop-Price order is triggered?

Limit stop order includes two prices: Stop Price and Limit Price.

When the Stop Price is reached, a Limit order with a preset Limit Price will be entered into the market. However, the limit order may not be executed. Since a Limit order will be executed when the market price is at or above the preset Limit price, a Limit order cannot be executed if the market price is below the Limit Price after the Stop Limit order is triggered.

10. Why does liquidation happen even though I have unrealized profit?

Liquidation is triggered when Margin Balance = Wallet Balance + Unrealized PnL

All positions in Cross Margin Mode have the same Margin Balance. Therefore, if the total amount of unrealized losses eroding the Margin Balance is lower than the Maintenance Margin, this will still trigger a liquidation in the Cross Margin Futures account even with short positions. mobile position.

11. If My Isolated Location Goes Bankrupt on Testnet, How Do I Remove Negative Balances?

On the Binance Futures Testnet, if your isolated positions go bust, you will need to clear the negative balance by adding margin. If you have enough assets in your account, you can simply click on the button to adjust the margin and add it.

If you don’t have enough assets in your account, you can click on the error to add content first.

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Key point

By answering these questions, we hope that you have gained a better understanding of how to use Binance Futures.

Please contact customer support team if you have any other questions. You can also visit Binance Academy to learn more about trading on Binance Futures.

Read the following helpful articles for more information about Binance Futures:

Disclaimer: Crypto assets are volatile products with a high risk of losing money quickly. Prices can fluctuate significantly on any given day. Due to these price fluctuations, your holdings can significantly increase or decrease in value at any point in time, resulting in a full loss of the capital you invested in a single trade.

Therefore, you should not trade or invest money that you cannot afford to lose. It is important that you fully understand the risks involved before deciding to trade with us based on your financial resources, level of experience and risk appetite. If required, you should seek advice from an independent financial advisor. The actual profits and losses you experience will vary depending on many factors, including but not limited to market behavior, market movements, and the size of your trade. Past performance is not a guide to future performance. The value of your investments may increase or decrease. looking for more information here.

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