TL;DR
Dual Investment lets you earn interest no matter the direction of the market.
Use Buy Low Dual Investment to buy crypto at a lower price in the future and earn interest.
Use Sell High Dual Investment to sell crypto at a higher price in the future and earn interest.
If the Target Price is reached, your deposit will be used to buy/sell cryptocurrency. If it isn’t reached, your deposit and interest income will be returned to you.
You can compound your earnings and roll over your positions using the Auto-Compound feature.
Introduction
Key Benefits of Dual Investment
Binance Dual Investment provides users with four key benefits:
- Buy Low or Sell High: Dual Investment allows you to have a chance to buy crypto at a lower price or sell crypto at a higher price.
- High Interest Yield: You’ll earn a high passive income no matter which direction the market goes.
- Wide Selection: You can choose from a wide variety of assets and set the target date and price to your liking.
- No Trading Fees: Zero trading fees when the target is reached and the buy or sell-order gets executed.
How does Dual Investment work?
Buy Low Dual Investment
There are two reasons why you might want to use the Buy Low Dual Investment:
1. Use your existing stablecoin holdings to buy crypto at your desired price, on a desired date, and also make additional earnings.
2. Accumulate more stablecoins through interest income.
Sell High Dual Investment
Similarly, the Sell High Dual Investment product also provides two use cases:
1. Sell your existing crypto holdings at your desired price on a desired date and also make additional earnings.
2. Accumulate more crypto through interest income.
Trading strategies
Key Dual Investment Terminologies
Before we get into how these products work, let’s define some of the terms you’ll need to know:
How to Subscribe to Dual Investment?
Using Binance Dual Investment is quite easy if you’re familiar with how the product works. Follow below simple steps to subscribe to Dual Investment.
2. Select the crypto you want to buy or sell.
3. Complete the Dual Investment quiz if this is your first time using the product.
4. Decide to Buy Low or Sell High.
5. Select a Target Price and Settlement Date.
6. Enter your subscription amount, agree to our terms, and click [Subscribe].
Beginner Mode
Once you are familiar with Dual Investment, you can use the same toggle button to switch off Beginner Mode and enjoy our advanced features.
How are the returns calculated?
Let’s first take a look at how interest income is calculated. Interest Income is calculated by using below formula:
Interest Income = Subscription Amount x APY% x Subscription Period (in days) / 365
a) You receive your Subscription Amount and Interest Income without any conversion.
a) You receive your Subscription Amount and Interest Income without any conversion.
On every Settlement Date, Binance uses 08:00 UTC as the checkpoint to decide whether the Settlement Price has reached the Target Price or not. The Settlement Price is the market price average in the 30 minutes before 08:00 UTC on the Settlement Date. Your funds will be returned to you within 6 hours after the Settlement Date checkpoint time (08:00 UTC).
How to auto-compound your Dual Investment returns
A common investment strategy is to compound your earnings to increase returns. Dual Investment can automate this process for you with its Auto-Compound feature.
On the Settlement Date of any open Dual Investment position, you can automatically re-subscribe to a new position with a Settlement Date occuring on the next available Settlement Date.
The Settlement Dates for BTC and ETH occur every Tuesday and Friday. The Settlement Date for all other digital assets is every Friday. Up to 30 minutes before the Settlement Date, you can choose to turn on/off the Auto-Compound feature.
There are two Auto-Compound plans available:
- If the Target Price is reached, Auto-Compound will stop. The system will close the position and distribute the returns.
- If the Target Price is not reached, Auto-Compound will continue. The system will automatically subscribe to a new position with settlement occuring on the next available Settlement Date until the Target Price is reached.
Imagine, if the current Sell High Target Price is not reached, at the Settlement Date your funds will auto-compound to a new Sell High position. If the Target Price is reached, Dual Investment will end the Auto-Compound function.
- If the Target Price is reached, the system will automatically subscribe to a new position with settlement occuring on the next available Settlement Date in the opposite direction.
- If the Target Price is not reached, the system will automatically subscribe to a new position with settlement occuring on the next available Settlement Date in the same direction. For example, you subscribed to a Sell High product and the Target Price is not reached. Auto-Compound will open a new Sell High position for you.
In our example, if the current Sell High Target Price is reached, Dual Investment will open a new Buy Low position with settlement on the next available Settlement Date. If the Target Price isn’t reached, at the Settlement Date your funds will auto-compound to a new Sell High position.