How To Trade Crypto Futures RESPONSIBLY!! – Binance Futures Tutorial

published on August 2, 2020

hey guys what is going on welcome back here at young investing for those who are new here my name is quentin and in this video we are going to talk about perpetual

Futures trading and no i didn't change my mind on perpetual futures as some people might have seen on my twitter that i've talked about it several times but i talked about it in a way that um

Youtube influencers crypto youtube influencers like myself i count myself also as a youtube influencer in crypto but a lot of these are using their power to promote garbage platforms and literally the

Platforms that they are promoting are like bitmaps by bit femix and what else do i know all these platforms are like trading against their own customers and all these youtube influencers fail

To disclose the risks of this and fail to disclose with using only like low leverage etc they fail to do this why because they get like a percentage

Of all liquidations happening with their signups and that is so very bad because of course that needs to be compensated by the platform itself and that is why these platforms are trading against

Their own customers and i'm not just saying anything this is based on truth we know that platforms such as bitmax bibit phoenix etc are trading against their own customers and we can literally see that

I mean like the data is on the charts always it's for every trading platform like this so if we have a look to for example bit max there is a perfect example of a typical bitmax

Move uh that happened yesterday and that is this right here so you see that the bitcoin price just went up in like 20 minutes it went up like three percent and then it fell

With five percent or four or five percent to just continue its way up i mean these are literally like scam candles i mean this is just to liquidate as much

People as possible and if you have a look to where the wick of this uh this move ended for on on bit max well it ended here it ended at 10 915 so the wick went to 10

915 if we for example have a look at binance which i would recommend as the the trading platform for perpetual futures well on binance if we have a look to that um we can see that yesterday's move

Um only ended at 10 000 let me let me get it here at here it is like 10 970 so the difference is 06 between the wick on binance which was not like a bigger wick than spot prices

And of course like for example the spot price on binance was the same on coinbase etc so you can see that this is a legit move but on bit max these wicks always go higher and always go lower why because

Of course in this area they have like a lot more people like liquidated and this area isn't like liquidated on other platforms such as for example binance um

If your liquidation price was in this area then then you were like yeah getting liquidated on bitmax and on on binance you would have been in profits

Because of course the move just continued it's just that ridiculous and that is why i hate um people on on twitter and people on youtube to promote these platforms because they're

Literally just scamming their own customers and you really don't want to give bit max more power than they already have so yeah i am doing this video to get like an other voice out there if

People want to trade um perpetual futures they will do it anyway there are enough tutorials on youtube but i want to have like a different voice out there that warns for the risks and also give like

The full disclaimer on all the risks i'm going to give you that right now so first of all ninety-five percent of the traders lose money only five percent

Is profitable and especially with like leveraged trading on perpetual futures not a lot of people are profitable and the few people that are profitable are literally taking it off from the non-profitable traders so

95 of the traders lose money second thing is if you want to trade perpetual futures anyway you can do that on a cool platform on a platform that is not trading against its own customers

Like binance please don't don't use too much leverage max 7x or 8x leverage is more than enough please don't use 20x please don't use 50x please don't choose 100x because it is

Available on all of these platforms but don't do it please only go to 7x or 8x because that way you get liquidated not that quickly also manage your the rest of

Your risk we will talk about it in in in just a minute please don't use too much of your portfolio just trade with a few percent of your portfolio if you want to do it anyway please don't go with 10

Of your portfolio into one trade please don't go with even five percent of your portfolio into one trade use a few percentage points uh per trade or if you're doing like

Several trades at the same time this should be even lower i'm personally trading with only a few percentage points of my portfolio but i do one trade by one trade

And last thing i want to say is please know how to trade i mean like have a trading strategy know how to do your ta use your stop losses etc then you might be like a little bit

Profitable with trading i hope so for you personally i only trade when literally the stars are aligning in front of me i mean i take a trade like maybe once a month

Max one trade that's it because i don't want to over trade because many people lose by just over trading doing too much trades of which they are totally not sure

Personally i just do it when i see like everything falling into place for example i took a trade as you can see right here on binance i took a trade bmb usdt why because first of all

Everything was extremely bullish bitcoin was going sideways it was all season b and b didn't bump yet bmp was celebrating three year anniversary bmb was at the historic support level

And bmb was also or binance is coming up with a new ieo in a few days and that will also pump the price so i took this trade really knowing what i was doing and that is important i'm not over

Trading at all i'm very very careful in how i trade anyway if you want to trade please use binance or a platform that is not trading against its own customers

But personally i don't know any except for binance or for example okay but i like to just use binance it's more liquid it's more trusted i trust this platform so much so i use binance and there is a

Link in the description down below feel free to use it if you sign up with that link or open your futures account that is of course the first thing you need to do opening a futures account if you do that with the link in the

Description down below you get 10 of all your trading fees so that is a little something i can give to you so um if you opened your futures account of course the first thing you need to do

Is font it with some fonts i'm going to show you how to do it but for that i'm going to turn off my camera and explain everything in the right bottom corner first

So how you do that is well you click on you can buy crypto you can deposit or you can transfer but the easiest way of course is to transfer so your account is open then you do like a transfer

And the only way you can do that is by transferring from your spot wallet to your perpetual wallet everything on the perpetual futures on binance is traded in usdt so you need to transfer usdt from spot

To perpetual i personally only have like 52 usdt in my in my spot wallet but i can transfer it to my perpetual wallet so confirm transfer and then you see it is successful so right now we have some

Money on our accounts then we also see here in the right bottom corner i'm going to explain this first and turn my webcam on again afterwards then you see here margin ratio and you

See the hive one trait open right here here you see the symbol so it's bmb usdt with 5x leverage then size how much bmb it is so 2520 my entry price was 1721 mark price

Right now is 1975 my liquidation price is very important because at that price your entire collateral that you put in to have like a leveraged trade will be gone everything will be gone on

Liquidation price how is that calculated well it is calculated um in terms of how much leverage you use for example if you use like 100 leverage to go long or short doesn't matter then one percent is enough

To liquidate your collateral position um for example if you use 50x two percent is enough in in both direction depends on which side of the trade you take of course um so 20x is more or less five percent

10x is is 10 and for example 5 which i used is more or less it's always more or less like 20 and that is how your liquidation price is calculated then your margin ratio is actually how

Much um in your margin balance you have so in your margin account i currently have 15 000 usdt you can see that right here and you see that the maintenance margin so the minimum amount that is required

To keep my positions open is 1800 usd more or less so margin ratio is 1192 which is very good you can see that it's in green always make sure you are in green here on this

Um this thing right here so you also have like yellow and you have like red but for me 12 it's very good so for example if my margin balance would go down towards the same number as

My maintenance margin then i get liquidated so for example if it's 1789 here in margin balance then i will get liquidated so for now that is very good my margin ratio is only 12

You see the margin i took was uh almost 10 000 uh dollars and p l is like the unrealized um profits or losses and you can see that i am up 64 on my trade

And because i have like a 10 000 margin you see that um i have like 6 400 profits now then you see adl this is an indicator on how when you will like be auto deleveraged etc doesn't really matter just make sure that it's not like

All the lines lights are off right here and then you can see close all positions and this is also very important because i have a position open right now and if i want to close it then i can simply click on uh limits or

Mark it so market will you will market sell everything on that moment or you can select the limit for me personally i want to i think i have it still open right here so i will cancel it uh but you can do it

For example i've already did my technical analysis and i want to close my position my entire position at 2131 um dollars for bmb price so then i do type in 2131 i click on limit and then

My entire position will be closed at 2131 so now i explained everything here in the bottom right corner i will put my webcam back on hey guys i'm here i'm still here and

Here on the top you can see like which pair you want so there are a lot of pairs available on binance futures on the perpetual features but also like quarterly futures this is a little

Different different than perpetual futures because quarterly futures don't require any funding you can see that uh perpetual futures do have funding every eight hours this is to keep like

The price and balance with like the spot price and uh etc it's a lot but anyway um quarterly doesn't have this funding perpetual do have that and quarterly is getting settled

Every quarter so the person who has the future um in on that moment of settlement then the thing will be settled it's just that simple perpetual futures are never settled but because of that

They have like a funding rate as well then here you can see like all available pairs uh for perpetual futures you can also select like which one you want here on the top in your favorites um so for me that is like bitcoin ethereum

Link xtc bmb and all go so uh but there is a lot more you can trade on but for example let's take bmb usdt because i already have a position open right here

So how did i determine how when i want to close my position well um like i said i want to close it at 2130 actually that is just below this resistance level right here so

Um it didn't do it properly now it is there so uh 21 50 more or less is like a resistance level i want to sell a little bit below that but of course if you want to close

Your trade you also want to open one so i've now i've already showed you how you can close it the most convenient way to do so of course you need to know your technical analysis uh to trade properly but how to open a

Trade you can you can do that right here and you see like limits market and stop limit so limit and here you see also cross and 5x let's start with that so cross i would always recommend you to use

Isolated trading i cannot change it right now because i am already in a position that is cross-trading for me it doesn't matter because i have one position open it doesn't matter if

It's cross or isolated the only time it matters is when you have several positions open whether you want it like to be used as collateral for the other trait or not

So isolated is that every trade has its own liquidation price this way you don't have the risk that your entire account will be wiped out if you use cross with several trades like i said i have

I've used it but i have like one trade it doesn't matter um but if you use cross with several trades then if if one of these liquidation prices will be hit your entire account will be wiped out so

Cross it is handy to like lower or higher your liquidation price so that there is more like a margin between that that is what it's used for but um it's not not very risk management

Friendly i mean you should use like isolated and then you have like every trade separately from each other so always use isolated i cannot change it right now like i said and then

Your leverage like i said you can um go up to 50 x but that depends on the the pair for example with bitcoin usdt you can go up to 125x but like i said just use a maximum of 7x or 8x leverage

Uh if you want to trade that's already risky enough then we see like limit or market or stop limit but um limit i would always recommend you to use a limit you can see that in my

Wallet i have 5070 usd available and you can for example make a trade let's say i want to buy the limit order of course then you can give like a custom price but you can say like okay i want to buy

At this point right here so i want to buy if bmb goes back to 18 then you can type in 18 usd and then how much bmb you want to buy and then you can also use this thing right here to

Um to to like indicate how much of your account you want to put into this trade so for example at 25 and i want to enter at 18 usd then you see that the cost is 1260 more or less usdt and uh yeah then you will receive a

Certain amount of of um of bmb so then you can enter the trade once the price will hit that and you will be in the order books because of course these are the order books the sellers are here the buyers

Are here the most recent trades are here so if you do like limit order you will appear in the books depending if you go long or short of course going long you bet on the price going up

Then you will be between the buyers right here or you can go short if you want to if you think the price will go down you can go short as well um but then then you will be between the seller side

Of course but depends so you can do it this way or you just can type in manually how much bnb you want to buy at that price with your leverage and then it says how much the cost is

Etc so this is how it works how you can buy it you can also buy it via a market order i would not recommend to do that you pay much more fees but if you want to go straight into

Like a trade you can do it i mean like you're free to do so of course but you pay like higher fees and also you will only get like you will fill other people's limit order

That's how it works you are the taker and not the maker you can do it but a limit order is much more safe and you can really say like okay you want to buy at

This price but of course you have the risk with limit order that this price will never be hit then a stop limit is actually to put like a stop loss on your trade so let's say i have my

Trade open and i want to close it still in profits because i entered my trade at 1721 it's right now at 1977 more or less i i can say like okay if the price goes

Down from here and it goes below this support level which should be support if it goes below that i want my trade to be closed still in profits so then we can say for example um yeah i

Want it to be closed when the price hits 176 so we can say like trigger price is 1760 then the price this means like the price you want to sell

Your position in the trigger price is only that you will at this price the trickle trigger will go off and your um your your position will be sold at the price

Right here so trigger price from 176 uh dollars onwards it will get triggered and the price we want to sell at is like 1740 you can take the same as the trigger price but it's not a very good idea why

Because here it will be triggered and it it could it is possible that your position will not get filled so it's always better to take a little bit of margin between the trigger price and the price you want to sell at

So for example 174 this should be enough margin between the two prices uh to be able to to sell it successfully um or you can simply say the amount of bmb you want to sell

And then of course if you are in a long position you of course click on sell or short and if you're in a short position then if you want to put your stop limit then you can click on buy long but

Then of course you your price need to be higher than the trigger price because you're doing the inverse move of course so uh that is basically how this platform works and i wanted to make this tutorial

To show you guys that you can trade responsibly as well and if you want to trade i would not recommend anyone to do it except if you are experienced enough and have enough time to

Like do ta and follow it up etc then you can do it if you want to but i really wanted another voice to be out there warning people as well for the risks that are involved because you can literally lose

Everything if you get liquidated one time i mean if you don't use your stop loss order if you um if you don't know what you're doing i mean then you get liquidated guaranteed and you will lose

Money and of course that's what a lot of these platforms want like bitmaps like phoenix etc and also what these youtubers that make these other tutorials and chill these these garbage platforms

Let's say like bit max phoenix uh by bit etc um that they promote that of course to fill their pockets and they don't give any risk warning etc most of them of course there are a few

Exceptions obviously but yeah that is why i wanted to make this tutorial not like to make you guys trade or promote this not at all i'm actually still against

That people do this but of course i do it myself and i can show you how you can do it responsibly and make profits with it alright so that is it for the video guys i hope you enjoyed it if so please give it a like

And if you're new to the channel please subscribe by hitting that subscribe button down below to stay updated with all latest cryptocurrency news reviews my own portfolio and much more

I thank you for watching and i see you next video cheers bye

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