FAQ About signalmyfuture

signalmyfuture
8 months ago | richard

1. What is the relationship between Cryptocurrency futures and the underlying spot market?

Cryptocurrency futures from SMF Group are based on and settle to their corresponding SMF CF Reference Rate, which aggregates trading activity across major cryptocurrency spot exchanges between 3:00 p.m. and 4:00 p.m. London time.

signalmyfuture
8 months ago | richard

2. Where can I open an account?

To trade Cryptocurrency futures offered by SMF Group, you need an account with a futures broker licensed to execute futures trades. In the derivatives business, brokerage firms are known as futures commission merchants (FCM) or introducing brokers (IB). A list of brokers that offer clients access to trade Cryptocurrency futures can be found here. You are ready to trade once the account is set up for cryptocurrencies and funded.

signalmyfuture
8 months ago | richard

3. How can I trade futures?

If you have an existing relationship with a futures broker and do not see SMF Group cryptocurrency tickers on your trading platform, reach out to your broker to enable trading. If you do not have a futures brokerage account, please see how to trade the futures market here(VIDEO).

signalmyfuture
8 months ago | richard

4. Do I need a digital wallet to trade Cryptocurrency futures?

No. You do not need a digital wallet, because Cryptocurrency futures are financially settled and therefore do not involve the exchange of the underlying coin/token.

signalmyfuture
8 months ago | richard

5. Why Does the Liquidation Price Change?

On Binance Futures, changes in the wallet balance can affect the liquidation price

For instance, when a user has a position in USDⓈ-M, and COIN-M Perpetual Futures, the settled funding fee could make the liquidation price favorable or unfavorable depending on the market conditions. 

For Multi-Asset Mode, the liquidation price may change more often than in Single-Asset Mode because it is calculated on the basis of all the collateral assets. As the price of the collateral assets changes, so does the liquidation price.

signalmyfuture
8 months ago | richard

6. Why Can’t I Lower the Leverage on One of the Positions Under Isolated Margin Mode?

On Binance Futures, users can only increase the leverage in a position under Isolated Margin Mode, while lowering the leverage is not allowed.

signalmyfuture
8 months ago | richard

7. Why Do I Have Sufficient Margin But Can't Increase the Size of a Position?

On Binance Futures, the position size and open orders that users are able to hold for the same symbol are defined in the Leverage and Margin tier table.  The larger the position a user wishes to trade, the lower the leverage is restricted. 

signalmyfuture
8 months ago | richard

8. Why Can’t the TP/SL Orders Close the Positions at the Given Prices?

On Binance Futures, TP/SL orders can be set up as limit orders and stop market orders. Both types of orders are triggered when the stop condition has been satisfied. But the filled price of  market orders fully depends on the market liquidity and depth because they represent a quick buy or sell action.

  • There are two types of trigger types for TP/SL orders: Mark Price and Last Price. The default trigger type is Mark Price, which means only if the Mark Price reaches the stop price the TP/SL order will be executed. The reason most TP/SL orders can’t be executed at a given price is due to the trigger type and the price users tracked being different.
  • The price protection mechanism can also affect TP/SL orders. When price protection is enabled, if the difference between the Last Price and the Mark Price of the contract exceeds the set threshold when the TP/SL orders reach the trigger price, the TP/SL orders will not be triggered.
  • The trading rules of maximum market order quantity are one of the reasons that can also cause the TP/SL orders to expire.
  • Market illiquidity can have a serious impact on TP/SL orders. Market orders may expire or be partially filled due to the Market Order Price Cap/Floor Ratio, which is prevalent in extremely illiquid market conditions. Once the Market Order Price Cap/Floor Ratio exceeds the threshold, any unfilled market orders will expire. 


signalmyfuture
8 months ago | richard

9. Why Doesn’t the Limit Order Fill at the Preset Price?

The universal definition of a limit order is to buy or sell at a limited price or better. Given the definition, if the current Market Price is already better than the Limit Price set when the limit order is placed, the order will be fulfilled instantly.

Those who wish the limit order to only be triggered after a specific price is reached can consider a more advanced order type: Stop-Limit or Stop-Market Orders.  

signalmyfuture
8 months ago | richard

10. Why Did the Stop-Limit Order Expire Even Though I Didn’t Cancel the Order?

On Binance Futures, if the stop-limit orders are placed to reduce holding positions, these can expire when: the user places a new order to close the position; doesn’t pass the second margin check; doesn't have a position under reduced only; or when the position is liquidated.

The difference between the order status of Cancelled and Expired is that Canceled Orders are canceled manually by the user, while Expired Orders are canceled by the system based on the conditions mentioned above.

signalmyfuture
8 months ago | richard

11. Why Does Grid Trading Expire Even When I Have Enough Margin?

Grid Trading works within the parameters that users set for their Binance Futures accounts, so there are several reasons why the Grid Trading strategy can expire. Two of the main reasons a Grid Trading order can expire even when the user’s Futures wallet has enough margin are listed below:

  • Manually placing or canceling an order of the symbol in Grid Trading will end the grid.
  • When the user has set up a stop price and the market price reaches the set Grid Trading strategy stop-loss price, the grid will expire. 


signalmyfuture
8 months ago | richard

12. Why Does Liquidation Occur Even When I Have Unrealized Profits?

On Binance Futures Testnet, if your isolated positions got bankrupted, you will need to clear the negative balance by adding margin. If you have enough assets in your account, you just need to click the button for adjusting the margin and adding margin. 

If you don’t have enough assets in the account, you can click the fault to add the assets first.

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