Futures Trading Introduction
In the crypto industry, the futures market is a fast-growing sector that generates trillions in volume monthly. Like stock options or commodity futures contracts, crypto futures offer protection against volatility and adverse price movements on cryptocurrencies. A crypto futures contract is also a proxy tool for investors to speculate on the future prices of cryptocurrencies. It can also be used to hedge against price changes of cryptocurrencies.

Benefits of trading Cryptocurrency Futures

  • Flexibility: Non-crypto holders can speculate on the price of a cryptocurrency and make quick profits. You can open a position in a crypto futures contract with stablecoins such as USDT, or any cryptocurrencies, and any profits made will be settled in the currencies you selected.
  • Leverage: Gain significant exposure to a specific cryptocurrency with only a fraction of its total cost. With leverage, you can magnify small price movements to create profits that justify your time and effort.
  • Liquidity: Crypto futures markets are extremely liquid, with trillions in trading volume. A liquid market is less risky because traders can enter and exit their positions easily with minimal slippage.
  • Portfolio Diversification: Diversify across trading strategies to generate more profits. You can develop sophisticated trading strategies, such as short-selling, arbitrage, pairs trading, etc.
Binance Futures types supported by TraderWagon:
  • USD-M Futures: USDT Perpetual contracts, settle via USDT
  • COIN-M Futures: Perpetual contracts, settle via base assets
USD-M Futures contracts on Binance Futures are not inverse contracts, instead they are linear futures products that are quoted and settled in USDT - stablecoins pegged to the value of the U.S. dollar.
COIN-M Futures contracts are settled in base crypto assets, for example, BTCUSD perpetual contract, means the base crypto asset is BTC, and this contract is priced by USD.
For more information about Binance Futures, please refer to:
Crypto Derivatives | Binance Support
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