Crypto Trading Binance Futures 3

Question 1

A trader opens a 10x long on BTCUSDT. Roughly what adverse price move liquidates the isolated position, ignoring fees?

Accepted Answer

About a 10% drop

Answer

At 10x leverage, an isolated position is roughly liquidated by a price move of about 1/leverage, near 10% against you (minus maintenance margin).

Question 2

What is a 'Reduce-Only' order on Binance Futures?

Accepted Answer

An order that can only decrease an existing position, never flip or increase it

Answer

A Reduce-Only order will only close or shrink your current position and will not open a new one in the opposite direction.

Question 3

In Hedge Mode on Binance Futures, what is allowed?

Accepted Answer

Holding long and short positions on the same symbol simultaneously

Answer

Hedge Mode lets a trader hold both a long and a short position on the same contract at the same time, unlike One-Way Mode.

Question 4

What does the 'Taker' fee apply to on Binance Futures?

Accepted Answer

Orders that fill immediately by removing liquidity from the order book

Answer

Taker fees apply to market orders or aggressive limit orders that execute instantly against existing book liquidity.

Question 5

How often does funding settlement typically occur on standard Binance perpetual futures?

Accepted Answer

Every 8 hours

Answer

Standard Binance perpetual contracts settle funding every 8 hours, though some volatile pairs use shorter intervals.

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