🟡 I'll explain it more simply: What is this 'Futures' thing on Binance?
Did you see a screen like this on Binance and didn't understand anything? Don't worry, I'll explain it to you easily and straightforwardly.
What are you seeing?
This screen is from the futures market on Binance. Here, you are not buying the cryptocurrency itself, but betting on whether its price will go up or down to profit from market movements.
How does it work? (Example)
1. 1000PEPEUSDT Perp
It is a perpetual futures contract that tracks the price of 1000 Pepe Coin in USDT (digital dollars). “Perp” means that it has no expiration date; you can hold the position for as long as you want.
2. Buy/Long (green)
You are betting that the price will go up. If it goes up, you win.
3. Sell/Short (red)
You are betting that the price will go down. If it goes down, you win.
What else is on the screen?
• 20x: You are using leverage. That means you can move more money than you have. Be careful! You can earn more, but you can also lose more quickly.
• Limit Order: You can choose at what price you want to buy or sell. If the market reaches that price, the order gets executed.
• Amount: How many contracts you want to trade (each one is equivalent to 1000 PEPE in this case).
• TP/SL: Allows you to set a “Take Profit” (close with a profit) and a “Stop Loss” (close to limit losses).
And what if I have no idea about this?
Don't worry! Binance allows you to practice with fake money in its futures demo account. It's ideal for learning without risk.
Quick conclusion
• Futures = Trading with leverage without buying the actual asset.
• Ideal for experienced traders.
• Not recommended for beginners without prior practice
