How to Trade Futures on Binance | How to Short Bitcoin | Registration and Deposit Methods
In this blog post, we will explore how to trade futures on Binance, how to take a short position on Bitcoin, and the registration and deposit procedures. If you want to profit even when the cryptocurrency market is bearish, try Binance's 'Short Position'. Futures trading is a trading method that allows you to make a profit when you expect the price of Bitcoin to fall. However, futures trading is more complex than spot trading and involves high risks, so a thorough understanding of leverage and margin management is required. In this article, we will guide you step by step from Binance registration to deposit and how to take a short position on Bitcoin so that even beginners can easily follow along.
How to Register for Binance
First, let's look at how to register for the Binance exchange.
This is the official VIP link that allows you to receive the maximum fee discount through the link above. You can start the membership registration by clicking on it.
After accessing the site, click the 'Sign up with phone or email' button.
Enter the email address or mobile phone number you will use and click the 'Next' button.
An authentication number will be sent to the email (or mobile phone) you entered, so enter it and set your password. After entering your password, click 'Next'.
Click the 'Not Now' button to complete the registration.
Binance Identity Verification (KYC)
You can only deposit, trade, and withdraw after completing identity verification. Therefore, those who use a PC must also install the Binance app.
You can search for Binance in the Google Play Store or the App Store for iPhones on your mobile phone and install it.
After logging into the app, press 'Get Code' to proceed with additional authentication, and then press 'Verify Now' to start KYC identity verification.
Enter your first and last name and then click 'Continue'.
Enter the date of birth listed on your ID, and enter your street address in Korean. In the case of writing a street address, auto-completion is sometimes possible, but it may be more accurate to enter it manually. After entering the postal code, enter the city unit in 'City'.
ID verification is possible with a driver's license, passport, or resident registration card. Here, an English sentence appears, requiring that the document is not expired, not a copy, information is not hidden, and the photo was taken against a solid-color background.
For example, in the case of a resident registration card, you must take photos of both the front and back. If there is no shooting button, bring the camera closer to the front of the ID card, and an English sentence will appear instructing you to flip the ID card, and you can flip it at this time. When the phrase 'Document uploaded' appears, click 'Continue', and finally, take a selfie. You just have to follow the instructions, such as matching your face to the frame and moving your mouth or turning your head left and right. When the phrase 'Verification Completed' appears, the verification is complete, and you can wait for the result.
If 'Verified' is displayed by clicking the person icon in the upper left corner of the Binance app, identity verification is complete. If you want to enhance security, it is also a good idea to set up Google OTP. (If you don't know how, you can search on Google for a lot of information.)
How to Trade Futures on Binance
When you enter the BTCUSDT market, you will see a futures summary window as shown below. Let's summarize the key information.
1. Futures Summary Window
- BTCUSDT perp: Perpetual futures market that sets BTC positions with USDT as collateral.
- 58317.5: Real-time execution price.
- Mark(58,319.4): Mark price. The position is liquidated when the liquidation price is reached.
- Index(58,319.4): Average spot price of major exchanges.
- Funding(0.01%): A structure that gives and receives fees every 8 hours to long or short positions.
- Countdown: Remaining time until the next funding point. Profits or losses occur depending on the direction of funding.
2. Chart Settings Window
① Set bar interval: You can adjust the bar interval at the bottom of the chart. Add to favorites with ‘Edit’.
② Indicator settings: Click 'Technical Indicator'.
Main Indicator: Add MA, BOLL, and save.
Sub Indicator: Add VOL, RSI and save.
3. Order Book (Order Book)
It is on the right, and when buying/selling at the market price, it is executed at the order of that price range.
4. Buy and Sell Window
Position settings are available on the right.
① Isolated / Cross
- Isolated: Fixed margin per position (recommended).
- Cross: Liquidation price fluctuates depending on the total balance. High risk.
② Leverage Settings
Position multiple adjustment is possible.
The higher the leverage, the greater the position size and the higher the risk of liquidation.
③ Order method
Limit: Limit Price / Market: Market Price
④ Avbl: Available balance
⑤ Order unit setting
- Based on USDT: Enter based on amount
- Based on BTC: Enter based on quantity
5. How to Open a Bitcoin Short Position
After setting Isolated, 3x leverage, and 300 USDT, click 'Sell Short'.
Once a position is opened, you can check the following items:
- Symbol: Position asset
- Size: Quantity (- means short)
- Entry Price: Entry price
- Break Even Price: Break-even price
- Mark Price: Liquidation reference price
- Liq. Price: Liquidation price
- Margin: Set margin
- PNL(ROE): Profit/Rate of Return
ROE calculation:
- Short: (Entry price - Current price) / Current price
- Long: (Current price - Entry price) / Entry price
6. Closing a Short Position
Select Market or Limit order depending on the size.
- Market: Immediate execution
- Limit: Execution at the desired price
- TP/SL settings: Automatic profit taking/stop loss function
- TP: Automatic profit taking when the set price is reached
- SL: Automatic stop loss when the set price is reached
※ Please note that prices may not be executed during rapid fluctuations, so use it for reference only