a limit order for 100, a take profit order for 120,

no leverage

This beomes a normal buy/hold with no chance of liquidation?


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3 Comments

  1. EuW_MadWard on 8. April 2022 at 11:54

    It is close to a normal buy/hold, but you pay/receive funding fees every 8 hours.

    If those fees happen to systematically be against you, you will effectively:

    * pay more than holding spot.
    * have a chance to be liquidated down the road, as your capital gets wasted in funding fees.

     


  2. SimonZed on 8. April 2022 at 11:54

    Yeah. But with futures you don’t actually hold anything.

     


  3. SimonZed on 8. April 2022 at 11:54

    You are right. Process is the same. I use futures when I want to place buy orders, take profites and stop loss and I don’t want to keep watching it. I also use it to short.