I need some help understanding Binance Futures because I feel like I'm missing something fundamental.
My issue is not about market analysis or finding winning trades. My issue is about how Futures actually works.
I have opened many positions and closed them while they were showing a profit. However, my margin balance kept getting lower and lower over time. At one point, my balance went from around $300 to around $190.
I recently learned about funding rates, leverage, margin, and trading fees, but I still feel like there is something I'm not fully understanding.
What confuses me is this:
- I open a position.
- The position goes into profit.
- I close the position while it is in profit.
- Yet my overall margin balance continues to decrease.
I'm not asking for trading signals or strategies. I'm trying to understand the mechanics of Futures trading itself.
For those who actively trade Futures:
1. What are the most common things beginners misunderstand about Futures?
2. Are there costs, calculations, or account mechanics that are easy to overlook?
3. What should I be checking after every trade to make sure my balance changes make sense?
4. How do you track exactly where money is being added or deducted from your Futures account?
I feel like I'm missing a key piece of knowledge about how Futures works, and I'd appreciate any guidance from experienced traders.
Thank you
#FutureTarding #futurestraders