What is Binance Dual Currency Financial Management? How to apply for Binance Dual Currency Financial Management?

Binance Dual Currency Financial Management: In-depth Analysis and Operation Guide

This article will conduct in-depth discussion on the operating mechanism, risks and benefits of Binance Dual Investment, and provide detailed operating steps. Dual currency wealth management is a high-risk, high-yield investment strategy, similar to the option seller's strategy, and novices need to operate with caution.

What is Binance Dual Currency Financial Management?

Binance Dual Currency Financial Management is a financial management product provided by Binance Exchange, allowing users to buy and sell cryptocurrencies at preset prices on specific dates in the future to earn fixed income, but they have to bear the risk of price fluctuations. "Dual Currency" refers to transactions involving cryptocurrencies and stablecoins. Currently, Binance supports a variety of cryptocurrencies to participate in dual-currency financial management. Although it can obtain fixed income, it is not a guaranteed investment, and there is a possibility of losses or even huge losses. Therefore, it is only suitable for users with strong risk tolerance and understanding of option mechanisms.

Principles of dual currency financial management operation

The core of dual currency financial management is the option seller strategy. To understand its principles, you need to master three key parameters:

• Target Price: Preset trading cryptocurrency price.
• Annual Percentage Rate APR (Annual Percentage Rate): Annual Percentage Rate, used to measure return on investment.
• Settlement Date: Contract Settlement Date.

Dual currency financial management sets a future settlement contract, which clearly stipulates the compensation (APR) and target price (limit order) on the settlement date.

结算情境	合约状态	总收益	说明
结算日价格达目标价	成交	现货价差 报酬	赚取现货价差和额外报酬
结算日价格未达目标价	未成交	报酬	本金全额返还，获得固定报酬

Taking BTC/USDT as an example, there are two strategies for dual currency financial management:

1. Sell at a high price (sell call options)

Hold BTC and hope to sell at a high price in the future. The contract sets the settlement date, target price and APR.

• Settlement date price ≥ Target price: BTC sells at the target price, obtains USDT, and obtains APR returns. The increase exceeds the target price is an opportunity cost loss.
• Settlement date price

2. Buy at a low price (sell put options)

Hold USDT and hope to buy BTC at a low price in the future. The contract sets the settlement date, target price and APR.

• Price on settlement date ≤ Target price: Buy BTC at the target price, obtain BTC, and obtain APR returns. The decline below the target price is the spread loss.
• Settlement date price > Target price: The contract is not sold, retain USDT and obtain APR returns.

After settlement, the user only holds a single currency. The currency of compensation is calculated depends on whether the contract is traded.

Dual currency financial management income calculation

Total income = fixed income (promised compensation) ± spot spread (contract transaction)

Fixed Income = (Contract Days ÷ 365 days) × APR × Principal

Dual currency financial management risk

1. Make less/lose spread (sell at a high price): The price of cryptocurrency rises beyond the target price, losing the gains of the increase.
2. Loss principal (buy at low prices): The price of cryptocurrency falls below the target price, and the principal is lost.
3. Fund lock: The contract cannot be cancelled after it takes effect, and the funds cannot be flexibly used.
4. Exchange Risk: Exchange Risk, Fund Security Issues.
5. Price difficulty: It is difficult for ordinary investors to accurately evaluate the rationality of APR.

Advantages of dual currency financial management

1. Reach fixed income regardless of the market trend.
2. Suitable for users who understand option strategies and want to trade options sellers.

Time for using dual currency financial management

1. Hold idle cryptocurrency and hope to sell at a specific price and earn extra income.
2. Waiting for a specific low price to buy cryptocurrency and hoping for additional benefits.
3. High capital, willing to take risks to earn a risk premium.

Binance Dual Currency Financial Management Subscription Steps (Illustrated)

(Step 1 to 5, detailed illustrations are omitted here, and only text descriptions are retained, because the picture cannot be displayed directly in the text. Please refer to the original picture for operation.)

1. Enter dual currency financial management: On the homepage of Binance App, click "Financial Management" → "High-yield" → "Dual Currency Financial Management" in turn.
2. Select subscription currency:Select the target currency, such as BTC, and select "Sell at high price" or "Buy at low price".
3. Complete the dual currency investment test (first subscription): Complete the test to confirm your understanding of dual currency financial management.
4. Select checkout method: Select target price, checkout date and APR.
5. Confirm subscription: Read the precautions carefully and complete the subscription after confirmation.

Remember: Dual currency financial management has high risks and high returns, and investment should be cautious. Before making any investment, be sure to fully understand its risks and make decisions based on your own risk tolerance.

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