{"id":4377,"date":"2022-06-22T11:43:00","date_gmt":"2022-06-22T04:43:00","guid":{"rendered":"https:\/\/wikibinance.com\/?p=4108"},"modified":"2022-12-14T10:47:43","modified_gmt":"2022-12-14T03:47:43","slug":"margin-and-futures-on-binance","status":"publish","type":"post","link":"https:\/\/wikibinance.com\/en\/basic-binance\/margin-and-futures-on-binance.html","title":{"rendered":"Margin and Futures on Binance &#8211; What are the differences?"},"content":{"rendered":"<p>Both <a href=\"http:\/\/ecoinomic.io\/en\/knowledge\/guide\/binance-futures-margin-guide.html\" target=\"_blank\" rel=\"noopener\"><strong>Margin<\/strong> <strong>and Futures<\/strong><\/a> are trading methods on <a href=\"https:\/\/wikibinance.com\/en\/knowledge\/binance-registration.html\">Binance<\/a> which provide users with leverage to increase their profits. However, their operating mechanisms still have certain differences.<\/p>\n<h3 id=\"ftoc-heading-1\" class=\"ftwp-heading\">What is Margin?<\/h3>\n<p>Margin is a method of trading assets via borrowing funds. It allows users to leverage their positions so that they can boost your purchasing power and make greater investments. Margin accounts have higher positions than regular accounts. In cryptocurrency market, funds are provided by a third party &#8211; other traders.<\/p>\n<blockquote><p>&gt;&gt;&gt; For more information about Binance Margin, read <a href=\"https:\/\/wikibinance.com\/en\/basic-binance\/binance-margin.html\">this article here<\/a>.<\/p><\/blockquote>\n<h3 id=\"ftoc-heading-1\" class=\"ftwp-heading\">What are Futures?<\/h3>\n<p><strong>Futures<\/strong> is a <a href=\"https:\/\/wikibinance.com\/en\/knowledge\/binance-registration.html\">Binance<\/a> platform for investors to buy and sell cryptocurrencies at a predetermined price in the future. You will make a profit by placing orders, taking the advantages of the ups and downs of the currency price for a certain period of time.<\/p>\n<blockquote><p>&gt;&gt;&gt; To get a better grasp of Binance Futures, click <a href=\"https:\/\/wikibinance.com\/en\/basic-binance\/binance-futures.html\">this link<\/a>.<\/p><\/blockquote>\n<figure id=\"attachment_4111\" aria-describedby=\"caption-attachment-4111\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-4111 size-full\" src=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/06\/Margin-va-Futures-giup-nha-dau-tu-gia-tang-loi-nhuan.png\" alt=\"Margins and futures help investors increase profits\" width=\"1024\" height=\"558\" \/><figcaption id=\"caption-attachment-4111\" class=\"wp-caption-text\">Margins and futures help investors increase profits<\/figcaption><\/figure>\n<h2>Similarities between Margin and Futures on Binance<\/h2>\n<h4>Advantage<\/h4>\n<ul>\n<li>Both Margin and Futures use leverage. The leverage shows how many times your initial capital is multiplied when comparing to the Spot market.<\/li>\n<li>Two-way profit , when the market is up or down. Profits increase if you correctly guess the trend of the market.<\/li>\n<li>Diversifying portfolios with capital does not need to be too large.<\/li>\n<li>When opening a position, the Cross or Isolate:<\/li>\n<\/ul>\n<p>\u2013 Cross: The position will automatically use all balances in Margin\/Futures account to limit account burnout. For example, you open an order with $100 and your account balance has $1,000. When the position is at risk, it deducts itself to $1,000 and the order is only liquidated until your funds in the account runs out.<\/p>\n<p>\u2013 Isolated: Limit the amount of currency in the position. This avoids the risk of dead losses. For example, you open position you with $200. If you are at risk, only burn $200 and do not cause damage to the balance in the account.<\/p>\n<h4>Disadvantages<\/h4>\n<ul>\n<li>The high risk: The higher your leverage, the more your funds are liquidated.<\/li>\n<li>It is easy to manipulate the price, causing the account to be liquidated quickly.<\/li>\n<\/ul>\n<figure id=\"attachment_4110\" aria-describedby=\"caption-attachment-4110\" style=\"width: 752px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-4110 size-full\" src=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/06\/Margin-va-Futures-deu-la-giao-dich-ky-quy-su-dung-don-bay.png\" alt=\"Margin and Futures provide users with leverage to increase their profits\" width=\"752\" height=\"423\" \/><figcaption id=\"caption-attachment-4110\" class=\"wp-caption-text\">Margin and Futures provide users with leverage to increase their profits<\/figcaption><\/figure>\n<h2>Differences between Margin and Futures on Binance<\/h2>\n<table style=\"border-collapse: collapse; width: 100%; height: 106px;\">\n<tbody>\n<tr style=\"height: 21px;\">\n<td style=\"width: 14.4248%; height: 21px;\"><\/td>\n<td style=\"width: 41.1062%; height: 21px; text-align: center;\"><strong><span style=\"font-size: 12pt;\">Margin<\/span><\/strong><\/td>\n<td style=\"width: 44.4689%; height: 21px; text-align: center;\"><strong><span style=\"font-size: 12pt;\">Futures<\/span><\/strong><\/td>\n<\/tr>\n<tr style=\"height: 17px;\">\n<td style=\"width: 14.4248%; height: 17px; text-align: center;\"><span style=\"font-size: 12pt;\"> Leverage<\/span><\/td>\n<td style=\"width: 41.1062%; height: 17px;\"><span style=\"font-size: 12pt;\"> Binance stipulates a certain level of leverage that cannot be changed for each coin.<\/span> <span style=\"font-size: 12pt;\">Up to x10<\/span><\/td>\n<td style=\"width: 44.4689%; height: 17px;\"><span style=\"font-size: 12pt;\">You can change within the<\/span> maximum <span style=\"font-size: 12pt;\"> x125<\/span> allowed limit<\/td>\n<\/tr>\n<tr style=\"height: 17px;\">\n<td style=\"width: 14.4248%; height: 17px; text-align: center;\"><span style=\"font-size: 12pt;\">Deposit<\/span><\/td>\n<td style=\"width: 41.1062%; height: 17px;\"><span style=\"font-size: 12pt;\">It is possible to transfer any stablecoin, altcoin, or Bitcoin to trading<\/span><\/td>\n<td style=\"width: 44.4689%; height: 17px;\"><span style=\"font-size: 12pt;\">Stablecoin transfer and withdrawal are only allowed<\/span><\/td>\n<\/tr>\n<tr style=\"height: 17px;\">\n<td style=\"width: 14.4248%; height: 17px; text-align: center;\"><span style=\"font-size: 12pt;\">Market<\/span><\/td>\n<td style=\"width: 41.1062%; height: 17px;\"><span style=\"font-size: 12pt;\">Spot market.<\/span> <span style=\"font-size: 12pt;\">Volatility is based on orders in the Spot market.<\/span><\/td>\n<td style=\"width: 44.4689%; height: 17px;\"><span style=\"font-size: 12pt;\">Derivatives market. <\/span> <span style=\"font-size: 12pt;\">Volatility is simulated based on the Spot market but there will be significant disparities. The figure is calculated based on the futures contracts of the buy and sell-side.<\/span><\/td>\n<\/tr>\n<tr style=\"height: 17px;\">\n<td style=\"width: 14.4248%; height: 17px; text-align: center;\"><span style=\"font-size: 12pt;\">Transaction fees<\/span><\/td>\n<td style=\"width: 41.1062%; height: 17px;\"><span style=\"font-size: 12pt;\">The fee is usually similar to the Spot market (from 0.075%).<\/span> <span style=\"font-size: 12pt;\">The interest rate is not fixed, depending on the coins and depending on different time.<\/span><\/td>\n<td style=\"width: 44.4689%; height: 17px;\"><span style=\"font-size: 12pt;\">The fee is calculated based on the leverage ratio, the more you borrow, the higher the charge.<\/span> <span style=\"font-size: 12pt;\"> This fee can rise as high as 0.5% when the market is highly volatile. <\/span> <span style=\"font-size: 12pt;\">Users may have to pay three times a day.<\/span><\/td>\n<\/tr>\n<tr style=\"height: 17px;\">\n<td style=\"width: 14.4248%; height: 17px; text-align: center;\"><span style=\"font-size: 12pt;\">Level of risk<\/span><\/td>\n<td style=\"width: 41.1062%; height: 17px;\"><span style=\"font-size: 12pt;\">Less risky than futures.<\/span><\/td>\n<td style=\"width: 44.4689%; height: 17px;\"><span style=\"font-size: 12pt;\">The risk is greater than the margin.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<blockquote><p><em>&gt;&gt;&gt; Related: <a href=\"https:\/\/wikibinance.com\/en\/basic-binance\/binance-registration-guide-full-latest-update-2022.html\">Complete guide to sign up for Binance<\/a><\/em><\/p><\/blockquote>\n\n\n<div class=\"kk-star-ratings kksr-auto kksr-align-center kksr-valign-bottom\"\n    data-payload=\"{&quot;align&quot;:&quot;center&quot;,&quot;id&quot;:&quot;4377&quot;,&quot;slug&quot;:&quot;default&quot;,&quot;valign&quot;:&quot;bottom&quot;,&quot;ignore&quot;:&quot;&quot;,&quot;reference&quot;:&quot;auto&quot;,&quot;class&quot;:&quot;&quot;,&quot;count&quot;:&quot;0&quot;,&quot;readonly&quot;:&quot;&quot;,&quot;score&quot;:&quot;0&quot;,&quot;best&quot;:&quot;5&quot;,&quot;gap&quot;:&quot;5&quot;,&quot;greet&quot;:&quot;Rate this post&quot;,&quot;legend&quot;:&quot;0\\\/5 - (0 votes)&quot;,&quot;size&quot;:&quot;24&quot;,&quot;width&quot;:&quot;0&quot;,&quot;_legend&quot;:&quot;{score}\\\/{best} - ({count} {votes})&quot;,&quot;font_factor&quot;:&quot;1.25&quot;}\">\n    \n<div class=\"kksr-stars\">\n    \n<div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n    \n<div class=\"kksr-stars-active\" style=\"width: 0px;\">\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n    \n\n<div class=\"kksr-legend\" style=\"font-size: 19.2px;\">\n            <span class=\"kksr-muted\">Rate this post<\/span>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Both Margin and Futures are trading methods on Binance which provide users with leverage to increase their profits. However, their operating mechanisms still have certain differences. What is Margin? Margin is a method of trading assets via borrowing funds. It allows users to leverage their positions so that they can boost your purchasing power and [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":8700,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[390,392],"tags":[2403,2411,1442,1568],"_links":{"self":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts\/4377"}],"collection":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/comments?post=4377"}],"version-history":[{"count":14,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts\/4377\/revisions"}],"predecessor-version":[{"id":89354,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts\/4377\/revisions\/89354"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/media\/8700"}],"wp:attachment":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/media?parent=4377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/categories?post=4377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/tags?post=4377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}