Margin 10X VS Future 10X.
Dears . I really cant get my head around this . can anyone tell me what is the big difference between going 10X margin BTC/USDT and binance ยูกันดา 10X Future BTC/USDT other than fees. i mean all of them will end in liquidation with same price . so please i need to know why would i chose to trade the future and not margin and vise-versa .
When you trade BTC/USDT margin with 10x leverage, you actually trade the asset, with other people buying and selling it. Therefore, you actually borrow the amounts: if you want to buy 10x BTC, you need to borrow 10x the amount of USDT, and vice-versa for shorting. All of it is trading of physical BTC that exists in binance dhuinn
wallets and is lent/borrowed between people.
When you trade BTC/USDT perpetual contract (futures), you only trade a contract that is indexed on the underlying price of BTC. It is indexed using mechanisms like funding rate (a rate payable every 8 hours by longers or shorters that gets higher the further the price strays from the underlying), and by the fact liquidations happen based on index price and not on the contract price. But at no point do you trade actual BTC, only a contract that is supposed to follow its price.
Pros of Futures:
Lower order fees (0.04% for a Taker order compared to 0.1% on spot without any discounts) and binance us pregled reddit no fees for borrowing, only additional fees are funding every 8 hours, and depending on price movements you might receive it too, making it kind of neutral.
Most often better liquidity (since people can take up to 125x positions and thus provide more liquidity).
Easier overall. On margin you need to borrow -> trade -> repay. On Futures, the whole borrowing part is gone and you can trade directly.
Cons of Futures:
Since you do not trade actual BTC, there is no 100% guarantee the price must be following the SPOT price at all times. For example, chain liquidations could very likely push the BTC/USDT contract price much further down/up than the underlying price. This phenomenon is especially important, správy o binance and exacerbated, on alts with lower liquidity.
Some hardcore fans could argue that Futures trading goes against the principles of Bitcoin, for example by allowing shorting an asset without ever borrowing it/touching it (this argument is often used against cash-settled CME futures).
In periods of very wild movements, the funding fees could be far more than the borrowing fees would have been for binance inceleme belgeleri this specific asset. Funding is neutral (you could be receiving it or paying it depending on your side of the trade), pagsusuri ng trading sa binance margin but it's something to keep in mind.