Leverage, Funding Fees, and More: Mastering Binance USDⓈ-M Futures 🚀

Binance USDⓈ-M Futures allow you to trade with amplified power, but understanding key concepts is crucial. Let’s break it down:

1. Leverage: Make larger trades with less capital 💰

The power of leverage: Imagine controlling a $100,000 position with your own $10,000. That’s the magic of 10x leverage!

Double-edged sword: Leverage amplifies both your potential profits and losses.

Profits: Small price movements in your favor can lead to significant gains. 📈

Losses: Small price movements against you can quickly wipe out your initial investment. 📉

2. Funding Fees: Keeping the balance ⚖️

Perpetual Futures: These contracts have no expiration date.

Funding Fees: To keep futures prices aligned with the actual asset price, traders pay or receive small fees.

When to pay: If the futures price is higher than the asset price (more buyers), those holding futures (longs) pay fees to those betting on a price decrease (shorts).

When to receive: If the futures price is lower than the asset price (more sellers), shorts pay fees to longs.

3. Position Size: How large is your bet? 📏

Position Size: This is the total value of your trade.

Leverage and Position Size: Higher leverage allows you to control a larger position size with the same capital.

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