Zignaly exchange uses the Binance Broker Program, and as we have mentioned in other opportunities they are sub-accounts within Binance that share exactly the same prices, liquidity, and rules as the original exchange. Only our interface allows us to add all the additional functionalities to make Profit Sharing possible.
Having the same rules as Binance we must respect the limits that the exchange sets for both Futures and Spot. Many traders are not familiar with these limits and it is very common to find related problems because of this.
💡 This article can help you with more insights to avoid possible errors.
In this Article:
Binance Trading Rules for Spot:
You can find all the information in the official article on the Binance website: https://www.binance.com/en/trade-rule
3 key aspects should be taken into account:
Min Trade Amount
This sets the minimum divisible units of each coin. This is the most frequent mistake that we find among traders who provide services in Spot because when not much capital is used and/or the services do not have so much capital under management, Dust is generated by the payment of commissions, leaving fractions without being able to sell and therefore not accounted for the position.
This causes some positions that have an Exit Price higher than the Entry Price to result in negative results when the position is closed. This leaves a number of coins that are too small to be sold.
In the version of our Profit Sharing, 2.0 will be incorporated the function that will allow to automatically change the Dust of the services, improving the experience of the trader and the users.
It is highly recommended to study the limits of the pairs we are going to use to avoid surprises and anticipate any situation. At least as long as our service does not manage large volumes of funds.
Min Order Size
Perhaps this is the most known and most traders know that a position must have a minimum value of 10 USDT to be able to place an order.
We must keep in mind that this applies to each order, not for each position. Zignaly groups multiple orders and creates the concept of position, but each DCA, each Take Profit is an independent order and each of them must respect all these rules.
That is to say that if we open a position with a value of 10 USDT and we place 2 Take Profits where we will sell half of the position in each one, we would not be respecting these Trading Rules and therefore we would have problems.
Max Market Order
Binance also limits the maximum size of market orders, to avoid sudden movements that can wipe out the entire Orderbook and avoid market manipulation by large whales.
This does not apply to Limit orders that we can place, such as Take Profits, but functions such as Trailing Stop Loss and Stop Loss that we decide to place will be affected, in addition to the fact that if we try to manually close the position and exceed these limits, we will also have problems.
Fortunately, the limits are very generous in Spot.
Binance Trading Rules for Futures:
You can find all the information in the official article on the Binance website:
Like Spot, Binance Futures also have their own rules that traders must respect:
Min Trade Amount
Similar to Spot, this is the minimum number of contracts that can be traded. With the difference that Futures do not generate the Dust that is generated in Spot, since here the currency is not purchased, but a contract that represents the value of the asset.
Min Notional Value
It is the minimum value that our contracts must have.
In the future, it happens that there are some cases where the Min Trade Amount exceeds the Min Notional Value. For example in BTC, where the Min Notional Value is 5 USDT but the Min Trade Amount is 0.001 BTC (about 60 USDT at the time of writing this article).
This means that each of our orders must have more than 0.001 BTC even if we have already exceeded the Min Notional Value.
For all these cases it is always considered the number of contracts we buy with the leverage included.
It is very important that traders adapt their strategies to these Trading Rules as most traders are used to trading with their own funds and the position sizes will considerably affect what they are used to.
Max. Market Order / Limit Order Qty
The Max Market Order Qty establishes the maximum amount of contracts that we can sell in a Market Order. Similar to Spot, in order to avoid manipulations that can modify the Orderbook more than the account, Binance sets limits.
For the Max Limit Order Qty, this value is much higher and allows us to manage a considerably larger position.
Many successful traders on our Marketplace are forced to create splits of their own services to replicate their trading as their positions start to reach these maximum sizes. The correct way to do this is to calculate based on the Binance Trading Rules, how much is the maximum capital our strategy can support and limit the capital we accept in our strategy in this way.
Once this limit is reached, we simply create a service identical to ours and specify that it is a Split, and then send exactly the same signals to both services.
In the future, we will improve this process to facilitate the trader's and users' trading experience.
In some cases, a trader may be limited when he tries to close an order because the sum of his contracts exceeds the maximum allowed for a Market Order. In such cases, you can use our Reduce Position Size feature, and reduce the position size in multiple stages using Market Orders. The ideal is to try to anticipate this type of situation, but it is always a possibility to apply this solution.