To conduct "stable contracts" (that is, controlling risk and steadily engaging in contract trading) on Binance, it is necessary to follow clear strategies and disciplines. Here are the core recommendations for stable contract trading:
1. Choose the right trading pairs
Focus on mainstream coins: such as BTC/USDT, ETH/USDT, which have high volatility but good liquidity and relative stability.
Avoid high-leverage small coins: extremely high risk, prone to liquidation.
2. Control leverage
Stable recommendation: within 3-5 times leverage
The higher the leverage, the faster the liquidation. Controlling leverage is the first step to managing risk.
3. Set take profit and stop loss
Stop loss level: cut losses at 3%-5% promptly
Take profit level: consider taking profit at 5%-10%
Not setting a stop loss is the biggest reason for new traders' liquidation.
4. Control position size
Use a maximum of 10%-30% of total funds at one time
Keep funds available for subsequent additions or to cope with volatility.
5. Trend is king, go with the flow
Go long or short in the direction of the trend, do not "bottom fish against the trend" or "chase highs and sell on dips"
Use 1-hour/4-hour candlesticks combined with moving averages or trend lines to determine the major trend.
6. Set triggers for opening positions (not market orders)
• Avoid chasing highs and lows, use limit orders or conditional orders to wait for pullbacks to enter, reducing the chance of being "liquidated."
7. Practice using Binance contract simulation trading
• Binance provides a [simulated contract account], suitable for practicing strategies and familiarizing with operations.
8. Common stable strategy recommendations
Price above MA10/MA20, go long with the trend; break below the moving average, go short
Buy low sell high, suitable for volatile markets, can use Binance contract grid function
Short on rebounds / Long on pullbacks Enter after key support/resistance levels react.
9.
Funding rate too high (>0.03%) = market overheated, beware of reversal
Dramatic increase in open interest = the main force may be positioning direction.
