Binance New Feature (Multi-Assets Mode) Guide for Beginners
With the newly launched Binance Multi Assets Mode, users will share their margin across USDT-margined and BUSD-margined contracts. Any profits made on either contract can be used as margin; this means that one position’s profits can offset losses in another losing position. Thus, the margin balance only reflects the net P&L between positions in the two markets. This new feature only supports the Cross Margin Mode.
#Binance Futures Launches Multi-Assets Mode
— Binance (@binance) May 6, 2021
What is Multi-Assets mode?
Multi-Assets Mode allows users to trade USDⓈ-M Futures across multiple margin assets. Presently, Binance Futures offers USDT-margined and BUSD-margined contracts under the USDⓈ-M Futures product line. Any profits made on either contract can be used as margin; this means that one position’s profits can offset losses in another losing position.
The traders who intend to trade with only one single margin asset (i.e only BUSD), can use the Single-Asset mode. In this case, the margin is divided into positions in the same marginal asset (i.e BUSD marginal trades). The profit and loss of transactions in a margin asset can offset each other. Single-Asset mode supports Cross Margin and Isolated Margin Mode.
How to switch between the Single/Multi-Assets Mode?
Before switching from single assets mode to multiple assets mode let me tell you that multi-assets mode is only available on USDⓈ-M Futures for now maybe Binance can extend this feature in future. Lets switch from single assets mode to multi-assets mode.
1.Login to your Binance Futures Account.
2. On USDⓈ-M Futures trading interface, go to the top-right corner and select Preference.
3. On clicking Preferences a new popup appears select asset mode and then switch between single and multi-asset mode.
Unable to Activate Multi-Assets-Mode?
If you are not able to enable multi-assets mode (Binance giving some error) then below are the two reasons.
- There are open positions or open orders in USDⓈ-M Futures, Multi-Assets Mode cannot be activated.
- Maybe there are active positions in grid trading, Multi-Asset Mode cannot be activated.
Advantages/Benefits of Using Multi-Assets Mode:
I personally believe multi-Assets mode feature is among one of the best features that Binance launched in Future Trading.
- Users can diversify across various stable coins and increase their capital efficiency by using the Multi-Assets mode.
- Users can share their margin across USD-margined products available on Binance Futures (USDT & BUSD); this is particularly useful when opening positions in the two markets.
- Now traders can deposit either USDT or BUSD and can trade in both markets using this great feature.
- This feature also allows arbitrageurs and sophisticated traders to efficiently manage their margin and P&L
Difference between Multi-Assets Mode and Cross Collateral:
How to check your account Margin ratio under Multi-Assets mode?
If you have enabled Multi-assets mode you can check it in Margin Ratio widget indicating Multi-assets mode on the top right corner.
Following is the formula to calculate your margin ratio in Multi-Assets Mode:
Account Margin Ratio = Account Maintenance Margin / Account Equity
How to check the balance of your assets?
Scroll down to your positions panel and you can check out balance of your assets under assets tab.
You can also check assets balance in your future wallet.
Concept of Auto Exchange in Multi-Assets Mode:
Under the Multi-Assets mode, when the Asset Wallet Balance (total net transfer + realized profits + net funding fee – commissions) is less than a given threshold, all other stable assets in the USD-margined futures wallet will be automatically converted as margin to cover the deficit. This is also known as Auto Exchange.
Let’s understand this using an example: if you have a wallet balance of 10000 USDT and a -2000 BUSD balance, this will trigger auto exchange. In this case, the exchange will convert approximately 2000 USDT to BUSD to cover the deficit.
Auto exchange occurs periodically, and if an asset’s portfolio balance is below the auto exchange threshold, the system converts the excess assets in the user’s wallet balance to an asset with an open balance. The matching engine manages the auto exchange process.