ELI5 Futures

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Hello! I’m quite new to trading, so please bear with me if I’m using the incorrect terminology! I’ve tried 20x leverage on SOL/USDT today and bought in at a lower price and sold a bit higher. However, PNL shows a loss in each of the buy/sell paired transactions.

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https://preview.redd.it/5f9bdr0m0qca1.jpg?width=1332&format=pjpg&auto=webp&s=bd7275cd7aa56750748fccdc6bea3c304df32ca8

I’ve boxed the orange and yellow to show two separate instances of buy and sell. I’m not sure why I’m losing money on the trade? Any assistance or pointers would really be appreciated. Thank you!!

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Posted in Binance Reddit

6 Comments

  1. KentzArbz on 10. December 2023 at 22:31

    Fees and funding rate positive (longs losing money)

     


  2. B_O_A_T_S on 10. December 2023 at 22:31

    I was also thinking fees. I remember reading that Maker orders are charged lower fees, but it seems to me like they are almost always free? is it possible to always ensure selling and buying as maker?

    i haven’t tried futures yet so maybe this doesn’t even apply. I would love a good ELI5 Futures post, i didn’t find anything good on youtube for me

     


  3. BinanceCSHelp on 10. December 2023 at 22:31

    Hi there, thank you for reaching out to us on Reddit. Our specialized team waiting for you to answer all of your questions in live chat. Kindly join our live chat at [https://binance.com/en/chat](https://binance.com/en/chat) (App: Dashboard > Profile icon > Help & Support > Chat) and share your Case ID with us. It will be appeared on top of your chat box and starting with 9. ^KO

     


  4. final_lionel on 10. December 2023 at 22:31

    Not ELI5 on futures. Futures are disabled in most countries for Binance users.
    20x leverage is too much to use without a trading bot
    With 5% you get liquidated

     


  5. -Rizhiy- on 10. December 2023 at 22:31

    20x leverage doesn’t make much sense unless you have very low fees. Remember your transaction fees will be multiplied 20x as well.

     


  6. tsurutatdk on 10. December 2023 at 22:31

    I think it’s the time when you close your trade. The market is volatile.