Binance Futures Trading Hedge Mode Explained

Binance Futures Hedge Mode Explained

Binance, one of the largest cryptocurrency exchanges in the world, is now offering a new “hedge mode” on their Binance futures platform. The platform became very useful for traders to improve their trading strategies, grow their profits and have exposure to the cryptocurrency market. 

In this article, we will share with you which are the main features of the new hedge mode on the Binance Futures exchange and how you can start using it to improve your trading experience. 

Read More: What is Dragonchain (DRGN)?

Binance Futures Basic Explanation

Futures are contracts which are used by traders to buy or sell an asset at a predetermined price and date in the future. In this way, they can hedge their exposure to price fluctuations and sell or buy an asset at a future date for the current price. 

Binance expanded with a traditional spot market exchange. They attracted the attention of a large number of traders and their volume is certainly one of the largest in the world. As years passed, Binance decided to start offering new services and solutions to traders in the market. 

The Binance Futures platform was one of the solutions that the exchange decided to add and now they are one of the largest futures trading platforms for cryptocurrencies in the world. Now, users can easily open long and short positions in the market after they analyze the current trades and understand where the price of an asset is going. 

What is Binance’s Futures Hedge Mode?

The Hedge Mode added to the Binance Futures platform is now allowing users to hold positions in both long and short directions at the same time and under the same contracts. The official blog post in which Binance announced this new hedge mode they say that traders will have the chance to switch between one-way mode and hedge mode in the Preference settings. 

Individuals on the Binance platform can access the to the Futures exchange and start using the hedge mode through the latest version of the trading interface. In addition to it, mobile users are also able to use the hedge mode that was released by Binance. 

Considering that futures trading is a risky activity to perform, users usually have to know how the markets behave, how they work and how they can improve their trading over time. Futures are very volatile and cryptocurrencies are also assets that move all the time. 

crypto future

Important Risk Management Consequences

Every single time you trade, you need to have a clear risk management strategy, which will be key for you to better improve your trading skills and results. When you have more tools such as the hedge mode, you will be able to protect your open positions and eventually reduce the risk you have if the market moves on the contrary position you are expecting to obtain a profit. 

This position helps you get some profits and also reduce potential losses. This is important to have a better risk control over time and improve your strategies in futures markets. Binance is becoming a more sophisticated platform over time that is allowing traders to have better solutions and possibilities to make profits in the market. 

Risk Management is very important for professional traders. Improving your risk management strategies will also have a positive effect in your portfolio and in the funds you use to trade in any market, specifically in virtual currencies and futures markets. 

AltSignals Leverages Binance Solutions

AltSignals is working on a daily basis in order to leverage Binance solutions and provide traders in the market with highly accurate trading signals. These signals are going to be very important in order for users to know when to enter or exit the market. 

AltSignals is one of the largest and most popular cryptocurrency trading signals providers in the world and it has been working in this way since 2017 when Bitcoin and cryptocurrency reached all-time highs. During the bear market of 2018, they were also able to have profits and remain operative despite the negative sentiment around virtual currencies. 

Nowadays, AltSignals is also providing trading signals for BitMex and other platforms such as ByBit allowing users to get clear information about the markets. The team of experts at AltSignals is also working on a daily basis in order to offer you with quality educational content specifically designed to meet the needs of their customers. 

If you want to improve your trading strategies, AltSignals will be providing you with great content, analysis, signals and more for you to better handle your digital assets over time. 


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