Binance leveraged tokens explained

By Centralized Exchanges 0 Comments

Binance leveraged tokens explained; you have often seen some tokens with up and down showing on different exchanges. You must have a question in your mind what are these up-and-down tokens. So, we tell you they are copies of big tokens like BTC and ETH. Why we are Binance leveraged tokens explained because the biggest fear that people who trade in futures markets have is that their account will have vanished if the trade goes wrong.

So leverage tokens that give you even a little more leverage on your trade and your account are not clean; leveraged tokens are made on every exchange. You cannot transfer them anywhere or from one place to another, but you can trade on these tokens and get profit and loss. The profit margin is higher in these tokens than in the spot trade market tokens.

The risk involved in leveraged tokens

So in this article, Binance leveraged tokens explained how to trade and how much you can get profit from leveraged tokens. Here’s how we describe the risk involved in leveraged tokens: For example, you have $100, and you take a trade, and your trade loses 10%, leaving you with $90 the next day. One worth mentioning here is that the price of all leveraged tokens on Binance changes every 24 hours.

Binance leveraged tokens explained with the profit will be calculated, and the loss will also be calculated. Now let’s assume the trade doesn’t close by you within 24 hours, and the next day the market goes up 10 percent. You did not make any profit or loss with this two days trade, but it is not, why because after losing 10 percent on the first day, you have a remaining $90.

So, when the price changes the next day with the 10 percent profit, the profit will now be at $90; if your profit is $10, your total balance will be $99. Always do research; when you take a trade, if it goes to profit and loss, the following day, prices will change on Binance. You will have a loss or a profit on the remaining amount the day after you close the trading day of the leverage token; the price change will affect your trade.

Finding Leveraged tokens on Binance

Binance leveraged tokens explained, if you don’t have an account, first you will sign up, otherwise sign in, then you will find the main menu bar, you will see a tab of Derivatives; when you click on it, you will see at number 6, the Leverage Token tab will appear. After clicking on it, a new page opens. On that page, you will see four tabs.

The first will be tokens, the second one is subscription history, the third one is redemption history, and the last will be services agreement. When Binance leveraged tokens are explained, we will explain the first tab, Tokens, where all the leverage tokens will be listed; you will see that each token has two pairs, one up and the other down.

For example, the names of listed tokens are BTCUP, BTCDOWN, ADAUP, ADADOWN, BNBUP, BNBDOWN, ETHUP, ETHDOWN, DOTUP, DOTDOWN, and LINKUP AND LINK DOWN. As soon as you come to the Binance page, you first see the token’s name. Along with the tokens, you will also get their price changes which are either written in minus or plus means changing the percentage of buyers and sellers. Binance will honor you with a leveraged of 1.5 up to 4.0 on tokens.

How to trade Leveraged tokens on Binance

Binance leveraged tokens explained; it is straightforward to trade; you will have three options in front of you; the first option is the trade. You will see the same page as the spot market when you click on it. You will find trading options on the right side of the page, as we learned in our article about how to spot trading works.

If you do not want to be traded by visiting the spot market page, you will click on subscription, meaning that you have purchased the leveraged token directly. Similarly, you have sold the leveraged token when you click on the redemption. You can easily trade leveraged tokens on Binance by using subscription and redemption.

One worth mentioning is that you can only trade the Leveraged Tokens on the spot market, not future markets. You will purchase any amount of tokens you want to purchase through any of your USDT here. And the simple thing is that if you are taking a down trade, then the respective coin must go down like BTC, so you buy BTC with your eyes closed.