About Binance Futures Sell/Short Trading

[Bits4Ever]

Hello Friends,

I am new in Binance Futures Trading. It is very interesting. I can make profit even market is down with using Sell Shot trading option.
So my question is about Binance Futures Sell/Short Trading. But I have a big doubt and question about it.
How is Binance making money for pay Sell Short traders when market becomes down?
Sometimes market is suddenly becomes big crash . That time, If members doing Sell Shot trading, all Sell/Short traders making big profit.
This time How is Binance making money from market crash for paying all Sell/Short Traders?
From where they giving money for pay their Sell/Short Traders? They are spending money from their own pocket ?
What is the profit strategy of Binance's Futures Sell/Shot trading ??


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[1715542748]

1715542748

[BitMaxz]

I think it was from their own pocket Binance is a big company and they already have many services offer they are making money on trading fees, coins and token listing, mining fees, and other services.

So even with the market crash, I think they could still afford and pay those who win on the futures trading.

[Ukuhudu]

trading 📈 you can earn Bitcoins with trading. The
safest way to make money with trading is through arbitrage. In short,
this means that you see an opportunity bitcoin Price Drop and You buy
an asset at a Lower Price and sell it for a higher price. It is
important that you know you can sell the asset immediately at a
certain price and Buy immediately

[Ukuhudu]

You have $100 to buy bitcoin. Instead of just buying with
that amount, you borrow $900 and buy $1000 worth of bitcoin. This is
1:10 leverage. Now, if the price goes up by just 1% you gain 10%. THE
MAIN POINT IS CRYPTO's PRICE is changing every seconds , Have a look
at the Last month price history For  Ethereum from
www.investing.com   
https://m.investing.com/crypto/ethereum/historical-data

[Peanutswar]

If you want to use spot trading all you need is to store your assets with your wallet, else you will make a scalping like join to the market volatility buy low and selling high. Unlike the futures trading, this is the same all you need is to buy with the dip and wait for the profit until it rises up vice versa with the buy trading. If you still doubt this you can try with the demo trading of course there's no risk with it, so somehow you didn't take it seriously but still it might help you a lot.

[Bits4Ever]

I think it was from their own pocket Binance is a big company and they already have many services offer they are making money on trading fees, coins and token listing, mining fees, and other services.

So even with the market crash, I think they could still afford and pay those who win on the futures trading.

Yes friend.. In Futures Sell/Short trading, They are paying their own pocket when getting market crash. If members making profit from Futures Sell/Shot, Binance spending money from their own pocket. But it is not good for Binance Company. No loss from margin trading, Spot Trading, Futures Buy/Long trading.
But Futures Sell/Short is a big loss of Binance company. I dont know why they are doing this foolishness .... Sell/Shot is not good for Binance Company..

[adaseb]

I don't think you understand how Binance which is a crypto exchange works exactly. When you buy or short some coin, you are not buying or selling from Binanace. Binance is only the exchange. You are buying and selling with other customers like yourself thru Binance. They are not trading against you, you are trading against the other customers.

The way you make or lose money is if somebody else is making or losing money. Its zero sum except for the fees which is what binance gets with every trade. For everytrade there is a buyer and a seller. Its an open market. There are some markets which can be very illiquid which might not even have a single bidder, because it means no other traders wants to take that position because they won't make money off it.

[Harriett]

The situation of a rapid crash is likely to be the joint smashing of the exchanges. In any case, the exchange has an advantage over traders, because it is possible to control the data of the platform in a short time. I think any centralized platform cannot be trusted .

[Bits4Ever]

I don't think you understand how Binance which is a crypto exchange works exactly. When you buy or short some coin, you are not buying or selling from Binanace. Binance is only the exchange. You are buying and selling with other customers like yourself thru Binance. They are not trading against you, you are trading against the other customers.

The way you make or lose money is if somebody else is making or losing money. Its zero sum except for the fees which is what binance gets with every trade. For everytrade there is a buyer and a seller. Its an open market. There are some markets which can be very illiquid which might not even have a single bidder, because it means no other traders wants to take that position because they won't make money off it.

Yes friend, I don't know how Binance exchange is working. I don't like to making Binance exchange in loss. I don't like to make money from Binance's own pocket. Because I love Binance.. I want to stay Binance alive  forever..   

[Dewi Aries]

I think will almost same like in spot trading, whenever someone profit there are someone who lose. We can see everytime market made an extreme movement, not only people who show their profit but  people who show that they are liquidated. But maybe how it is done exactly, there are Binance employees who can describe to us here.

[michellee]

You do not have to search for how Binance makes a profit from their market because I am sure Binance will not tell you. That is their secret and what we only need is how we can make a profit. If you lose in trading, just consider that it is a donation for Binance because you use their services and I am sure you can make more profit in the next trade. We want to see Binance still become the biggest crypto exchange, but do not forget that new exchanges can launch every month and every exchange out there will have its potential to become bigger like Binance.

[kramchers]

Hello Friends,

I am new in Binance Futures Trading. It is very interesting. I can make profit even market is down with using Sell Shot trading option.
So my question is about Binance Futures Sell/Short Trading. But I have a big doubt and question about it.
How is Binance making money for pay Sell Short traders when market becomes down?
Sometimes market is suddenly becomes big crash . That time, If members doing Sell Shot trading, all Sell/Short traders making big profit.
This time How is Binance making money from market crash for paying all Sell/Short Traders?
From where they giving money for pay their Sell/Short Traders? They are spending money from their own pocket ?
What is the profit strategy of Binance's Futures Sell/Shot trading ??


.

Well, based to the knowledge I know about future trading, this is some kind of similarity in the traditional way of trading if I am not mistaken.
while in spot trading is not, correct me if I am wrong with my thoughts. Besides, since that I had been here in crypto space for a couple of years and yet never try to use the tool category of future trading.

[Bits4Ever]

You do not have to search for how Binance makes a profit from their market because I am sure Binance will not tell you. That is their secret and what we only need is how we can make a profit. If you lose in trading, just consider that it is a donation for Binance because you use their services and I am sure you can make more profit in the next trade. We want to see Binance still become the biggest crypto exchange, but do not forget that new exchanges can launch every month and every exchange out there will have its potential to become bigger like Binance.

I am agreed with you.. I want to see Binance always stay alive. Millions of peoples using Binance and their life is depends on Binance. I never blame Binance if I got loss.
My loss = My responsibility. Not a Binance fault. I am always considering my loss as my donation. I always want to see Binance alive in crypto market.. I love Binance.. In my opinion, they must remove Sell/Short trading from Futures Trading.. Because If members getting profit from Sell/Short, Binance will become in loss.. Binance can't make any profit from market down or market crash..

[zahed]

Binance Futures trading interesting BUT i think it's high risky trading who traders are Greedy they can undoubtedly lose in there. Binance spending their huge own money in the futures trading method Specifically in the down market. 

[Bitcoin_Arena]

It's very embarrassing how most members responding to this thread  do not know how markets work, especially derivatives  
I think it's only @adaseb who gave the most accurate answer to OP.

Binance only earns through trading fees. The rest is between the traders. Shorts vs Longs, Funding rate, Insurance fund is all about traders and not Binance.

When you win a trade, it means someone out there has lost or even had their position liquidated. If you lose a trade, it means another trader out there has made huge profits. Not Binance. Binance only counts on your trading fees.

[adaseb]

It's very embarrassing how most members responding to this thread  do not know how markets work, especially derivatives  
I think it's only @adaseb who gave the most accurate answer to OP.

Binance only earns through trading fees. The rest is between the traders. Shorts vs Longs, Funding rate, Insurance fund is all about traders and not Binance.

When you win a trade, it means someone out there has lost or even had their position liquidated. If you lose a trade, it means another trader out there has made huge profits. Not Binance. Binance only counts on your trading fees.

Yes this thread along with the comments is difficult to read. Most of the comment don’t really answer the OP question, perhaps it’s because English might not be their main language and for some it’s difficult to understand what they are trying to say.

So you got people who took a few keywords like “Binance, trading, futures” and they are replying posting basic comments which aren’t even remotely related to the original post.

I posted my reply and have no idea if the OP understands because his comment makes it seem like he thinks Binance will go bankrupt if he keeps making winning short trades and keep taking Binances money.

[Maus0728]

Because I love Binance.. I want to stay Binance alive  forever..  

Not until you've realized that they do not care whether you lose your capital or not.

If you're feeling proud and happy just because you have successfully shorted a coin or a token, this means that there is also someone who is having a bad day because he had lost his money from making a long trade. The money you have gained does not come from Binance' pocket but from someone else's pocket.

In fact, binance always takes a certain fee from both participants who make long and short trades and that is how they are making money passively. Not only that, they are also earning from the withdrawal and expensive listing fees.