How to Upgrade to Binance Futures Credit Trading Mode in 5 Minutes: A Step-by-Step Guide

This Blog Post provides a simple, step-by-step guide to upgrading to Binance Futures Credit Trading Mode. It explains how to enter the mode, transfer and convert assets, and complete key trading steps. You'll also learn about margin types, the differences between Isolated and Cross Margin, and how your trading will look in this mode. Additionally, it covers the main areas to focus on and answers common questions.
Stablecoins
Trading
Binance
Ana Tischevici
June 27, 2024

Table of Contents

  1. Intro
  2. Prepare Your Account for Binance Futures Credit Trading Mode
  3. What You Need to Know Before You Start Trading Using Binance Futures Credit Trading Mode
  4. Start the Trades
  5. Common Questions
  6. Updates for Moontrader's Users

Intro

Welcome to our comprehensive guide on upgrading to Binance Futures Credit Trading Mode. With the introduction of the MiCA (Market in Crypto-Assets) regulation, significant changes are being made to the rules governing stablecoins and all derivative products, including UM, CM, Options, Portfolio Margin, and Futures.

These changes are in line with the new MICA law in the EU, and they will impact all Binance users in 22 European countries:

๐Ÿ‡จ๐Ÿ‡พ Cyprus ๐Ÿ‡ฑ๐Ÿ‡ป Latvia
๐Ÿ‡ต๐Ÿ‡ฑ Poland ๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic
๐Ÿ‡ท๐Ÿ‡ด Romania ๐Ÿ‡ต๐Ÿ‡น Portugal
๐Ÿ‡ฆ๐Ÿ‡น Austria ๐Ÿ‡ญ๐Ÿ‡บ Hungary
๐Ÿ‡ง๐Ÿ‡ฌ Bulgaria ๐Ÿ‡ฌ๐Ÿ‡ท Greece
๐Ÿ‡ณ๐Ÿ‡ด Norway ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg
๐Ÿ‡ญ๐Ÿ‡ท Croatia ๐Ÿ‡ธ๐Ÿ‡ฎ Slovenia
๐Ÿ‡ฎ๐Ÿ‡ช Ireland ๐Ÿ‡ช๐Ÿ‡ช Estonia
๐Ÿ‡ฒ๐Ÿ‡น Malta ๐Ÿ‡ซ๐Ÿ‡ฎ Finland
๐Ÿ‡ธ๐Ÿ‡ฐ Slovakia ๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark
๐Ÿ‡ฎ๐Ÿ‡ธ Iceland ๐Ÿ‡ฑ๐Ÿ‡ฎ Liechtenstein

Understanding and complying with these new regulations is crucial for ensuring a smooth transition and continued success in your trading activities.

Key Things to Remember:

  • June 26: Some products will switch to "reduce only" mode. This means you can only close existing positions; no new positions can be opened.
  • September 30: All remaining positions in these products will be automatically closed unless you switch your account to the new mode.
  • New Asset - Binance Credit (BNFCR): In Binance Futures Credit Trading mode for USDT or USDC contracts, PNL, margin, and fees will appear as credits labeled BNFCR. Any stablecoin balance in your futures wallet (like USDT, USDC, FDUSD) can be converted to BNFCR at a 1:1 ratio at any time. This trading mode is currently only available for USDโ“ˆ-M contracts. When transferring between futures wallets and other wallets using this mode, only BTC, ETH, and BNB can be used. BNFCR cannot be withdrawn directly but can be converted to BTC, ETH, or BNB before withdrawal.

In this article, we'll walk you through everything you need to know about the MiCA regulation, how to prepare your Binance account, and the steps to start trading in Binance Futures Credit Trading Mode. We'll also address common questions and provide updates specifically for Moontrader's users. Let's dive in!

Prepare Your Account for Binance Futures Credit Trading Mode in 5 Minutes

What do I need to do to prepare my Binance account for Futures Credit Trading Mode?

To prepare your Binance account for the Futures Credit Trading Mode, follow these steps:

  1. Log in to Your Binance Account: Navigate to the Binance website and log in with your credentials. If you donโ€™t have an account, sign up for one Binance Account.

1a. Stop all your Trading: In order to lower the risks and possible issues probability We suggest to Stop all your Trading Activites.

  1. Access the Futures Trading Section: Go to the โ€œFuturesโ€ section from the main menu. This is where you can manage and monitor your futures trading activities. A pop-up window will appear:
  1. Enable Binance Futures Credits Trading: You will need to Read and Accept the Futures Service Agreement, then click [Confirm] to complete the upgrade. If you haven't already enabled futures trading, youโ€™ll need to do so. From Portfolio Margin Mode:Please switch to Classic Mode first, then follow the above steps to complete the upgrade. https://www.binance.com/en/support/faq/how-to-use-binance-futures-credits-trading-mode-0e857c392a2d47cebde0af762d9255ae?hl=en

IMPORTANT: If you have Sub accounts, then you will need to enable Binance Futures Credit Trading Mode for each of the Sub Accounts.

  1. Check your Balances: The USDT, USDC, FDUSD stablecoins should be transfered from Your Binance Futures Account to the SPOT. Then You can convert them for the BTC, ETH or BNB. Transfer BTC, ETH or BNB to the Futures Account and convert them to BNFCR.
  2. Check Margin and asset modes: By default, after upgrading to Binance Futures Credits Trading Mode, your margin mode will be set to Cross Margin Mode and your asset Mode will be set to Multi-Assets Mode. Please ensure that you monitor, adapt and review your trading positions and strategy accordingly.Under Binance Credits Trading Mode, users will not be able to change to Margin Mode or Asset Mode.

https://www.binance.com/en/support/faq/how-to-use-binance-futures-credits-trading-mode-0e857c392a2d47cebde0af762d9255ae?hl=en.

  1. Almost Ready to TradeAfter completing the Steps above you are ready to trade, but we suggest you read the main points below!

What You Need to Know Before You Start Trading Using Binance Futures Credit Trading Mode

What should I be aware of before starting to trade using Binance Futures Credit Trading Mode?

Before you start trading, it's important to understand the following:

  1. Understanding BNFCR: PNL, margin, and fees will appear as credits labeled BNFCR. Any stablecoin balance in your futures wallet (like USDT, USDC, FDUSD) can be converted to BNFCR at a 1:1 ratio at any time.
  2. Trading Mode Availability: This trading mode is currently only available for USDโ“ˆ-M contracts.
  3. Asset Conversion and Transfer: When transferring between futures wallets and other wallets using this mode, only BTC, ETH, and BNB can be used. BNFCR cannot be withdrawn directly but can be converted to BTC, ETH, or BNB before withdrawal.
  4. Margin Types: Be aware of the implications of transitioning from Isolated to Cross Margin and the need for careful balance management.Cross Margin uses the entire available balance of your margin account to maintain positions. This means that if you have multiple positions open, the entire account balance will be used to maintain all these positions. In the event of significant losses on one position, you could lose your entire balance as it is used to maintain all positions.โ€When transitioning to Cross Margin, it is essential to be more attentive to the overall account balance since losses on one position can affect all positions. Be prepared for potentially higher fluctuations in account balance, which requires greater psychological resilience.

Start the Trades

How do I start trading in Binance Futures Credit Trading Mode?

To start trading, follow these steps:

  1. Ensure Your Account is Upgraded: Make sure your account has been successfully upgraded to the Futures Credit Trading Mode.
  2. Transfer Assets to Futures Wallet: Transfer your assets (BTC, BNB, ETH) to your futures wallet and convert them to BNFCR if necessary.
  3. Place Your Orders: Navigate to the trading interface, select your contract, and place your orders. Monitor your positions and manage your trades according to your strategy.
  4. Manage Your Margin: Keep an eye on your margin levels and ensure you have enough balance to maintain your positions.

Common Questions

What are the most common questions about Binance Futures Credit Trading Mode?

  1. Can I withdraw BNFCR directly?
    • No, BNFCR cannot be withdrawn directly. You must convert it to BTC, ETH, or BNB before withdrawal.
  2. What happens if I don't upgrade by the key dates?
    • You will only be able to close existing positions from June 26, and all remaining positions will be automatically closed by September 30 unless you switch to the new mode.
  3. Are there any additional fees associated with the new trading mode?
    • Trading fees will appear as credits labeled BNFCR, but there are no additional fees for upgrading to the new mode.

Updates for Moontrader's Users

What are the latest updates for Moontrader's users regarding these changes?

Current Known Implications of the Binance Futures Credit Trading Mode

Disable Auto-Purchase of BNB

- Potential Issue: Disabling this feature is crucial to avoid conflicts.

Recheck Auto-Stops

- Action Required: Be carefull the auto-stops might not function correctly. It may be necessary to create new ones.

FROZEN Deposit Is Not Displayed

- Issue: The frozen deposit is not showing up.

Reboot the Core

- Action: If the core hasn't been stopped, it needs to be rebooted to update management on cross.

Disable AUTO MARGIN SELECTION Setting

- Potential Conflict: If this setting is enabled, disable it in the system settings to prevent conflicts. This is done under Options Section - Core inside the client - screenshot from TG

Repeat for Each Core and Sub-Account

- Reminder: All the above tasks need to be performed for each core and sub-account.

General Checks

- Action: Start testing and checking all possible functionalities. Provide suggestions, feedback, and reports for any issues, especially significant ones.

Cross-Exchange Reminder

- Important: Remember, Margin Management is now ONLY CROSS!

  1. Integration with Moontrader: We are working on integrating the new Binance Futures Credit Trading Mode with Moontrader to ensure a seamless experience.
  2. Support and Assistance: Our support team is available to assist you with the transition. Feel free to reach out if you have any questions or need help with the upgrade process.
  3. Future Enhancements: Stay tuned for future updates and enhancements to Moontrader that will further improve your trading experience.

Text prepared by the MoonTrader team, a terminal for advanced algorithmic trading. For those who want to automate their trading, welcome aboard. We answer your questions in our Telegram channel - https://t.me/moontrader_en

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Disclaimer: Moontrader is not a regulated entity. Trading involves substantial risks, and past performance is not indicative of future results. The profits shown in product screenshots are for illustrative purposes and may be exaggerated. Only engage in trading if you possess sufficient knowledge. Under no circumstances shall Moontrader accept any liability to any person or entity for (a) any loss or damage, in whole or in part, caused by, arising out of, or in connection with transactions involving our software or (b) any direct, indirect, special, consequential, or incidental damages. By using Moontrader's services, you acknowledge and accept the inherent risks involved in trading and agree to hold Moontrader harmless from any liabilities or losses incurred. It is essential to review and understand our Terms of Service and Risk Disclosure Policy before using our software or engaging in any trading activities. Please consult legal and financial professionals for personalized advice based on your specific circumstances.
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