HOW TO SWITCH BETWEEN SINGLE/ MULTI-ASSETS MODE
ABOUT ASSETS
An asset represents an economic resource for a company or represents access that other individuals or firms do not have. A right or other access is legally enforceable, which means economic resources can be used at a company’s discretion, and its use can be precluded or limited by an owner.
For an asset to be present, a company must possess a right to it as of the date of the financial statements. An economic resource is something that is scarce and has the ability to produce economic benefit by generating cash inflows or decreasing cash outflows.
Assets can be broadly categorized into short-term (or current) assets, fixed assets, financial investments, and intangible assets.
ASSET TYPES
Current Assets
Current assets are short-term economic resources that are expected to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, and various prepaid expenses.
Fixed Assets
Fixed assets are long-term resources, such as plants, equipment, and buildings. An adjustment for the aging of fixed assets is made based on periodic charges called depreciation, which may or may not reflect the loss of earning powers for a fixed asset.
Financial Assets
Financial assets represent investments in the assets and securities of other institutions. Financial assets include stocks, sovereign and corporate bonds, preferred equity, and other hybrid securities. Financial assets are valued depending on how the investment is categorized and the motive behind it.
ABOUT THE MULTI-ASSETS MODE
Multi-Assets Mode is a system that makes it possible for 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. This is otherwise known as the single asset mode. With the newly launched Multi-Assets Mode, users will now be able to share their margin across USDT-margined and BUSD-margined contracts.
Multi-Assets Mode will help to significantly drop margin requirements for hedged positions. For example, if a position in the portfolio is making profits, it could offset the liability of a losing position in the same portfolio. This would reduce the overall margin requirement that is necessary for holding a losing futures position.
Meanwhile, users who want to trade with only a single margin asset (i.e, BUSD only) can select the Single-Asset Mode. In this case, margin is shared across positions in the same margined asset (i.e, BUSD-margined contracts). Profits and losses of positions within the same margin asset can offset each other. The Single-Asset Mode supports both Cross Margin Mode and Isolated Margin Mode.
Essentially, in multi-assets mode, a portfolio normally has its assets in multiple, reason for the multi-assets. Therefore, whenever one position happens to be losing, it becomes quite easy for the loss to be offset by the other well-performing positions. Just like a person with multiple houses, they can run to the other houses in times of crisis of one.
HOW TO DO THE SWITCHING BETWEEN SINGLE AND MULTIPLE ASSETS
On the USDⓈ-M Futures trading interface, go to the top-right corner and select Preference > Asset Mode.
In the Asset Mode tab, select between Single-Asset Mode or Multi-Assets Mode.
Note that Single-Assets Mode is enabled by default.
Also, do note that if there are open positions or open orders in USDⓈ-M Futures, Multi-Assets Mode cannot be activated. Similarly, if there are active positions in grid trading, Multi-Asset Mode cannot be activated.
Suppose you are holding positions in Isolated mode. In that case, you will be asked to switch all open positions to Cross Mode before enabling the Multi-Assets function.
When the contract margin assets do not meet the system requirements, they will be automatically converted into other assets under the U-standard contract account as margin assets. Please see the rules of automatic exchange of joint margin.
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