How to trade EOS with up to 75x leverage on Binance
Leveraged trading can be a valuable tool for every EOS trader that’s searching for profits in the cryptocurrency market, as it allows traders to enter larger positions by committing a smaller amount of capital. While Binance was always known as a traditional spot cryptocurrency exchange, it has now entered the cryptocurrency derivatives space and provides a simple, yet powerful platform for EOS leverage trading. The EOS market has evolved to the point where traders have no shortage of options when it comes to platforms for crypto margin trading.
Binance has even outdone its competition in certain aspects – for example, it offers up to 75x leverage on its EOS/USDT perpetual contracts, making it highly attractive for anyone that’s looking for a EOS leverage exchange.
Binance is one of the most popular cryptocurrency exchanges on the market, which means that you probably won’t encounter any issues with liquidity when trading. The EOS/USDT contract in particular is very actively traded.
EOS margin trading
In this guide, we will be providing a tutorial for using the Binance Futures EOS/USDT perpetual contract to trade EOS on margin. When you’re just starting out, we recommend that you only use a small amount of cryptocurrency to trade with. Leveraged cryptocurrency trading comes with more risk than standard spot trading, and some of the terminology and concepts can be difficult to understand for traders that aren’t yet experienced with EOS margin trading.
We will give you a step-by-step guide on how to enter and close leveraged position with the EOS/USDT. Along the way, we’ll point out the most important things to be on the lookout for when trading.
The pros of trading EOS with leverage
- You would like to use a small amount of cryptocurrency to enter a bigger trading position
- You have a high risk tolerance and would like to diversify your trading strategy beyond spot trading
- You want to have the option of profiting from the price of EOS falling (shorting)
The cons of trading EOS with leverage
- If you’re just getting started with cryptocurrency and trading, it might be best to avoid leveraged trading
- Losses can add up quickly if the market moves against you, so leveraged trading is not for those with a low risk tolerance
- You’re not interested in shorting EOS
Trading EOS with leverage on Binance
1. Create a Binance account
First things first – you will need to open an account on the Binance cryptocurrency exchange. The process is pretty straightforward, and similar to what you can expect when creating an account on any online platform.
If you’re withdrawing less than 2 BTC per day, Binance currently doesn’t require you to submit any personal information apart from your email address (and potentially, your phone number). At the moment, Binance doesn’t accept customers from the United States.
Create Binance Account
In this guide, we will assume that you know how to deposit cryptocurrency to a cryptocurrency exchange – if you don’t, leveraged trading is probably not for you!
2. Fund your Futures wallet with USDT
After you’ve deposited some cryptocurrency to Binance, you’ll have to acquire some USDT in order to be able to trade EOS with leverage on Binance Futures. After you get your hands on some USDT, head over to the “Wallet” section at the top of the Binance user interface and select “Futures”. Then, Transfer the desired amount of USDT to your Futures wallet.
We recommend to start with a small amount until you get comfortable with the user interface.
3. Go to the Binance Futures trading interface
Now that you have some USDT in your Binance Futures wallet, you’re ready to go. Click the “Futures” tab on the top navigation bar.
Now, you’re greeted with the Binance Futures trading interface. We’ve highlighted 4 parts of the interface to get you started.
- Here, you can select the contract you want to trade. In this case, you’ll have to select – EOSUSDT
- Here, you can adjust the amount of leverage you are using. This slider goes from 1x to 75x. Higher leverage means higher potential profits, but also a higher chance of losses.
- Here, you can place an order. You can either go long (you will profit if the price increases) or short (you will profit if the price falls). You can choose between market order, limit order, stop limit order and stop market order.
- Here, you can monitor the status of your position after your order is filled. Pay special attention to the Liq. Price – if the price of Bitcoin reaches this level (liquidation price), you will lose your entire position!
Click on the leverage button to adjust the leverage you will be using. As an example, we have reduced the leverage from 20x to 10x.
Click the “Cross” button to adjust your preferred margin mode. To start off, it might be a good idea to switch to isolated margin. This gives you less flexibility but can reduce the total amount of losses you can take when having multiple positions open at the same time.
4. Create a EOS leverage order
In this example, we will be using a limit order to enter a long position worth 0.01 BTC. The procedure is the same when you are opening an order for your selected cryptocurrency, in this case EOS.
We set the limit price at 7,937 and we are using 20x leverage, so entering this position will require 3.96 USDT – this is the maximum amount we can lose in the event that our position is liquidated. Of course, you can use stop orders to manage your risk. You can check out this tutorial from Binance to understand how different types of stop orders work and how they can prevent unnecessary losses.
5. Monitor your order
In the picture below, you can see an example of an order that has been filled successfully. This position is worth 0.1 BTC and has a liquidation price of $4,686. On the right side of the tab, the position can be closed with either a market order or limit order.
The bottom line on EOS leverage trading
While it may be hard to wrap your head around EOS leverage trading at the start, this guide has hopefully made the process a bit easier to understand. Thanks to the user-friendly interface, trading EOS with leverage on the Binance digital asset exchange is relatively simple.
As always, make sure to stay on top of your risk management and don’t leverage trade with funds you are not willing to lose! This is especially true if you’re using high leverage.
If you’re looking to leverage trade cryptocurrencies other than Bitcoin with leverage, take a look at our guides for the rest of the supported assets on Binance Futures:
Alternative EOS leverage trading platforms
Of course, Binance is not the only cryptocurrency exchange that offers leveraged cryptocurrency trading. Whether you’re looking for additional cryptocurrencies to trade or just want to try something new, there’s plenty of top crypto leverage exchanges to choose from – here are just a few examples: