How to open leverage on Binance mobile version

Opening leverage positions on Binance's mobile version necessitates enabling a Futures trading account, funding it, selecting a suitable leverage ratio, and carefully managing open positions while considering the inherent risks involved in leveraged trading.

Nov 10, 2024 at 03:26 am

How to Open Leverage on Binance Mobile Version

Step 1: Understanding Leverage Trading

Leverage trading involves borrowing funds to amplify your trading positions. This can enhance potential profits but also magnify potential losses. Binance offers leverage options of up to x20, x50, and x125. Carefully consider your risk tolerance and trading strategy before employing leverage.

Step 2: Enabling Futures Trading Account

To open leverage positions, you must first activate your Binance Futures trading account. Navigate to [Futures] > [Open Futures Account]. Provide necessary information and complete the risk quiz.

Step 3: Funding Your Account

Transfer funds from your Spot wallet to your Futures wallet. To fund your account, click on [Transfer] in the top-right corner and select [Transfer to Futures Account]. Specify the amount you wish to transfer and confirm the transaction.

Step 4: Choosing the Leverage Ratio

Once your Futures account is funded, navigate to the trading terminal and select the asset pair you wish to trade. On the order form, locate the [Leverage] section. Adjust the slider to select your desired leverage (e.g., x20, x50). Higher leverage amplifies both profits and losses significantly.

Step 5: Placing an Order

Determine the order type (Market, Limit, Stop-Limit) and enter the amount you wish to trade. Confirm that the leverage ratio you selected is accurate. Before executing the trade, it's crucial to double-check all order details.

Step 6: Managing Open Positions

After placing an order, it will appear in the Open Positions tab. You can monitor the position's performance and adjust or close the position as needed. Pay close attention to the Maintenance Margin and Liquidation Price, which indicate the threshold at which your position may be closed to avoid losses.

Step 7: Risk Management and Closeout

Leverage trading carries significant risk. Define your risk limits and implement stop-loss orders to protect against excessive losses. Monitor the market price and close the position when it reaches your profit target or stop-loss level. Closing a position involves entering the opposite transaction to the initial opening trade.

Step 8: Margin Call and Liquidation

When the market moves against your position and the account balance falls below the Maintenance Margin level, a Margin Call is issued. To avoid liquidation, you must replenish the margin balance by transferring additional funds or reducing the position size to meet the Margin Maintenance requirement. If the Margin Maintenance is not met, Binance will initiate a forced liquidation of your position to cover the losses.