Binance Unveils Copy Trading for Futures to Support Crypto Newbies
In Brief
Binance has rolled out a new feature that enables users to engage in copy trading for their futures offerings, letting novices imitate the strategies of seasoned traders.
Traders who lead the pack can benefit from a 10% share of profits and rebates on trading commissions drawn from the users following them while sharing their insights on Binance Feed.
Binance is on a mission to elevate cryptocurrency trading by launching copy trading functionality for futures products in chosen markets. This innovative feature allows beginner users on the platform to mimic the strategies of veteran traders, fostering community interaction and extending access to financial opportunities.
The platform states that lead traders, whose strategies are emulated, will enjoy a 10% share of the profits as well as a rebate on trading commissions for those who follow their trades. Moreover, experienced traders can disseminate their trading strategies and insights via Binance Feed, thereby cultivating a vibrant ecosystem for knowledge sharing within the trading community.
Beginner copy traders can track up to 10 leading traders, giving them access to essential portfolio metrics like ROI over different durations, profit and loss records, potential drawdown, and assets under management. This access facilitates a smoother way for newcomers to leverage the expertise of established traders.
Rachel Conlan, Binance's Chief Marketing Officer, highlighted the platform's dedication to promoting financial inclusivity, stating, \"Our mission at Binance is to enhance financial access, and our products are designed to empower users in gaining better control of their financial futures.\"
"We're addressing the needs of novice traders eager to learn from and connect with experienced market players, who, in turn, will have enhanced methods to share and profit from their wisdom. We believe that copy trading reduces the entry barriers into crypto and can foster greater social engagement within our community,\"
she added.
To utilize the copy trading option, users can easily find this feature within their Binance accounts. Importantly, separate accounts for copy trading and futures trading will help ensure effective management of user activities.
In terms of risk management, Binance has put in place several mechanisms for copy trading. Users can tailor their risk preferences, such as setting Take-Profit/Stop-Loss levels, adjusting leverage, and selecting margin modes. Furthermore, slippage limits are set at 0.3% for BTC/USDT and ETH/USDT, and 0.5% for other futures products, providing an extra layer of protection for copy traders.
Additionally, users can opt for either a Fixed Ratio or a Fixed Amount method for their trade fund allocation. Risk indicators will now visually categorize portfolios with 10x to 20x leverage in yellow and over 20x in red to give traders critical insights into their risk exposure.
In September, Binance Japan partnered In collaboration with Mitsubishi UFJ Trust Bank, Binance is working on developing a compliant stablecoin tailored for the Japanese market. This initiative is set to launch a distinctive stablecoin that connects Binance's global services with Japan, supporting transactions in Japanese Yen (JPY) and US Dollars (USD) come 2024.
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