Futures leverage trading advice requested

[tred1975]

Hi there,

I hope I am posting into the right section. I did a few futures leverage trades on Binance never above 4x. I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

thanks for any help or tips

tred

[tranthidung]

I hope I am posting into the right section. I did a few futures leverage trades on Binance never above 4x. I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

Future trading is not for newbies and it is for experienced, disciplined and professional traders.

Because you asked this question, I advice you to stop your intention to get rich with Future trading. If you want to get experience with Future trading, my advice:

• Create a new account in which you store only 1% of your capital.
• Use that 1% of your capital for Future trading.
• If you lose that 1% capital, and want to spend more capital to learn, let's make another deposit with 1% of your capital
• If you fail 10 rounds, you will lose up to 10% of your capital, it should be a time to stop your Future trading adventure

[Oshosondy]

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

Isolation trading means you will not be able to transfer any other funds into your active future trading. So, if the price of the coin get to the liquidation price, you have no option than for the fund to be liquidated.

The other is cross margin, in this case you will be able to send more funds in case your fund is about to be liquidated, you will be able to transfer more fund into your future account, the liquidation price will be reduced. Example is assuming you have $40 in future account, you go long (buy) bitcoin and leverage it 3x, bitcoin liquidation price can be $15000, but if you transfer more bitcoin to your future account, the liquidation price will reduce less than $10000, it can reduce to $5000 depending on the amount you transferred into your future account during cross margin trading.

[tred1975]

thanks for the answers. I still would like to learn what are the best options if you want to go long and plan to keep it open for weeks or months? What is with the fees during this time?

[lannister2k]

 contact me , i could be able to explain a little more than what the fellow members has explained

[Bitcoin_Arena]

I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

Opening long term futures positions is not something I would advice you to do. Crypto market is so volatile and you could still get liquidated at one point however low your leverage is.

Funding fees which are usually charged every 8 hours will also eat up your profits in the long run

If you want to trade futures and make some sensible profits. Be ready to be a day trader. I should warn you that it isn't easy though.

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

Post only helps if you want to make a limit order but market price keeps moving up and down each second past your limit order. If post only is not activated, and you try to open a limit order when the market price has moved past your intended price, the order will immediately get filled as though it was a market order.

If Post only is activate. It means that the limit order will only be posted in the orderbook. if the market price goes past the limit price you intended to place in the orderbook. the order will be cancelled immediately and you will have to place the limit order all over again until you get your desired limit price.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

Yes only you initial margin in the open position will get liquidated

[ashmodeus]

of course , there have a funding fee every 8 hours , also value it depend about how much people on it, i mean lets this this time value just about 0.01% , that a normal funding fee, its mean , market is healthy, i mean market you join in, because every pair have different funding fee.

[Kittygalore]

I have heard that futures is a really big risk so I would say that you should first assess your risk tolerance and don't go straight into it if you are a newbie in trading because as I said earlier, it is so risky that you might as well just gamble your money.

[crwth]

I believe it will vary depending on what exchange you are using. So since you are using Binance, you would refer to fees within this link.

https://www.binance.com/en/support/articles/360033544231

For sure it would answer most of your questions with this. Check it out.

[cryptocointrade.com]

Hi there,

I hope I am posting into the right section. I did a few futures leverage trades on Binance never above 4x. I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

thanks for any help or tips

tred

The simple answer is NO. Leverage trading is for short period of times like hours and days. Maximum weeks.

Why?

You need to understand these concepts to know why

1. The difference between isolated margin and cross margin
2. The volatility decay
3. The fees charged to keep the leveraged position (Margin interest fees)
4. Settlement interval

[Sinjokubhi]

Hi there,

I hope I am posting into the right section. I did a few futures leverage trades on Binance never above 4x. I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

thanks for any help or tips

tred

It takes weeks or months, I don't think it is a problem for a long-term investment, but what needs to be considered is that you have to be patient and stay calm for a long time. Trading on impulse never works. Have in-depth financial knowledge and the ability to use a variety of financial indicators, charts and signals. Long-term trading is included in fundamental analysis. A trader must take into account many factors such as political, economic conditions and many other factors that must be taken into account. If you can handle it, the strategy will provide a trading benefit beyond the expectations and common practice. For lower long-term initial investment costs, while short-term trading is accompanied by lower returns, the more you invest the more you will get. The situation with the Long-Term trading strategy is a little different. To your heart's content whether to target 100 or 200 pips with a minimum initial capital.

[ChrisPop]

I know traders that have a core long position on which they keep adding or subtracting. It's all a matter of strategy. You can view it as an apple tree. You plant the seeds at certain price levels and then let them grow. As you advance you can cut some fruits or plant more seeds. Personally I like this analogy. Hopefully you do too!

The option "post only" is mainly used to avoid slippage and higher fees. Some exchanges even offer rebates when you get your limit orders filled. All professional traders I know use cross margin and stop-losses (be it mental or static/fixed). When you use 2x,3x,4x leverage you are essentially saying "I can't place my own stop-losses so I want your system to do it for me.". Keep in mind that exchanges charge you extra fees when you get liquidated.

[sujonali1819]

contact me , i could be able to explain a little more than what the fellow members has explained

I have reviewed your post history and noticed that many times you have requested some newbies to pm you to get more info. What's the reason behind it?  It's better always share your experiences publicly here in this forum so that other people also have a chance to learn from there.

* I am not saying that your intention is negative, So don't mind. And try to share your experience in this forum if you can help the newbies

[herurist]

contact me , i could be able to explain a little more than what the fellow members has explained

very funny, if you are proficient, then please share your thoughts here so that you know the knowledge you have. is not that very useful than you tell one of the beginners to contact you.
is that how you charge those who need help .. you should review those thoughts and suggestions.

[Rkss4]

Today I am very sorry to say that I already lost more than 1300$+  with Binance future leverage trading. I don't know anything about leverage trading rules and regulations. So it's my regrets that I never trade in future any more.

[aditasetia123]

using 4x leverage quite safe in my opinion , we could not over trade when using this scale. every trade will need high margin so in my opinion its good choice, and dont forget use not more 2% from our capital.

Today I am very sorry to say that I already lost more than 1300$+  with Binance future leverage trading. I don't know anything about leverage trading rules and regulations. So it's my regrets that I never trade in future any more.

before you decided using future trading you must understand how its work , make calculation about profit and loss before click order button.

[Viscore]

Hi there,

I hope I am posting into the right section. I did a few futures leverage trades on Binance never above 4x. I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

thanks for any help or tips

tred

I discourage you not do that if you still have limited knowledge about trading. It is better to gain some more experience in spot trading as to know that leverage trading is quite difficult and risky when you are new. You don't need to rush yourself as trading has no joke at all. The more you gain experience, the more you prepare yourself. You definitely need time to study it as it was really difficult in your position. Many traders had failed and lost thousands of dollars because they underestimate trading, and you shouldn't do that.

[strunberg]

contact me , i could be able to explain a little more than what the fellow members has explained

information already explained well by all member, no need to contact you anymore dude. we have several points about futures trading to minimize the risk that may occure next .

before you decided using future trading you must understand how its work , make calculation about profit and loss before click order button.

i do agree with this statement, we will know how much trade we could survive if make mistake continuesly.

[karungbitcoin]

I never touch futures leverage trading in Crypto Asset because I have been in forex trading for more than 3 years and I know the risk is very high, the risk is balance of the trading can be going to zero. From my experience in forex trading, we should use stop loss and trailing stop for every trade. Price fluctuation of crypto already very high and its enough for me only trading on spot market, from short term or long term trading we can multiple our balance for a few month in spot market in this bull market.