Binance Futures is one of the world’s most advanced and widely used cryptocurrency derivatives platforms, providing traders with opportunities to profit from rising and falling markets.
Whether you’re a beginner who wants to learn the basics or an experienced investor, exploring advanced tools such as leverage, financing rates, and risk management, this guide will take you through everything you need to start using binary futures from building an account to safely and strategically executing your first transaction.
What is a futures contract?
Futures contracts are financial derivatives that allow traders to speculate on the future price of an asset without having to own the asset itself. In the world of cryptocurrencies, futures enable users to profit from rising and falling markets through long-term or short positions.
These contracts usually have expiration dates and are usually settled in cash or crypto, depending on the platform. Futures trading is popular among senior investors for its leverage, flexibility and potential to resist market volatility.
What are binance Futures?
Binance Futures is a derivatives trading platform operated by Binance, the world’s largest cryptocurrency exchange.
With up to 125 times leverage and a variety of contracts (USDT-M and Coin-M), Binance Futures has become an increasingly popular tool for professional traders looking to profit from price volatility.
And, before using binary futures, you need to understand the concept of long/short:
- Chang (buy Chang): You hope that the price of your assets will rise in the future. If your prediction is correct, you can later sell it at a higher price to make a profit.
- Short (short selling): You expect the price of your asset to fall. You sell your assets at the current price and then buy at a lower price to lock in earnings. This is the main advantage of derivatives trading, because it can profit users even if the market is declining.
Why do you need futures?
Unlike spot trading that is usually associated with long-term asset appreciation, futures enable you to actively trade market volatility. This makes them the preferred tool for traders who thrive on motivation, news-based sports or technology models. Whether the market is rising or falling, there are opportunities to make money – if you can predict direction accurately.
Use responsibly, futures can provide excellent returns. In fact, in recent years, the global crypto derivatives market has grown explosively. According to recent data:
- Now, more than 70% of daily crypto trading volume comes from derivatives, and binary futures are always ahead of the market.
- In countries such as South Korea, Vietnam and Türkiye, the use of highly leveraged derivatives has soared, emitting retail investors hoping to expand large-scale capital.
- Binary futures alone handle billions of dollars in volumes every day, which proves how many traders rely on it for aggressive short-term strategies.
Binance Futures is not only a trading tool, but also offers a suite of features designed for modern crypto traders: low fees, deep liquidity, risk management tools such as stop loss and sellers, and an intuitive user interface. These elements make it anyone looking to take advantage of short-term market volatility – from experienced professionals to motivated beginners.
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Create and KYC your used account
Users should visit the official Binance website to register for an account and complete identity verification (KYC) if they have not done so.
Once logged in, navigate to the Derivatives tab on the main menu and select USDT-M Futures or Coin-M Futures based on your trading preferences. Binance will require you to enable 2FA (two-factor authentication) to enhance account security.
Deposit funds into your futures wallet
To start trading, users need to hold stable assets in their spot wallets, such as USDT. If you don’t have a USDT yet, you can buy it through Binance’s P2P transaction feature, which allows you to purchase USDT using USD or other popular payment methods such as bank transfers.
Once the USDT is placed in the spot wallet, it needs to be transferred to the futures wallet to use it for trading futures contracts. Go to the Wallet section, select Futures, click Transfer, select the asset type (for example, USDT), and enter the amount you want to transfer.
Contract type and how to choose
Binance Futures offers two types of contracts:
- USDT-M Contracts: These are derivative contracts that use USDT as margin assets. Users only need to deposit USDT to trade various assets, such as BTC, ETH, BNB, etc. This is the most common and beginner-friendly option because it simplifies profit and loss calculations by using stable value units (USDT).
- Coin-M Contracts: These contracts use basic cryptocurrencies (e.g., BTC or ETH) as margin and settlement assets. Coin-M is more suitable for long-term holders who want to increase coin holdings through leverage trading rather than just focusing on their value in a stable stake.
The choice between contract types depends on your risk appetite and trading strategy. USDT-M is ideal if you prioritize stability and transparent capital management. On the other hand, if you have strong confidence in the basic assets and want to optimize the returns of coin units, the token M may provide better long-term value.
Interface and key components
The Binance Futures trading interface is designed to give users complete control over their trading decisions while displaying basic market data in real time. Here is a detailed breakdown of its key components:
- Order Book: The order book is located on the left side of the interface, displays on-site bids (buys) and asks (sells) orders at different price levels; order depth and liquidity revolve around the current market price
- Trade History: Under the Order Book, the Trade History Team displays the running log of the recently completed transactions for the contract; execution price, scale and direction (buy/sell).
- Order Placement Panel: On the right, this is where you make a new deal. You can choose the order type: Market, Limit, Stop Limit, Stop Market or Paid/Stop Loss Combination; Leverage: Based on two pairs, from 1x to 125x; Position Size – Enter how many assets you want to trade; TP/SL Settings – Optional but strongly recommended to manage risk.
Basic Order Type
- Market Order: This order is executed immediately at the best market price. This is ideal for traders who want to quickly enter or exit a position without caring about the exact strike price.
- Restricted Orders: This allows users to set a specific price to buy or sell. Orders are only filled when the market reaches this price. It is preferred when you need precise control of the inlet or exit point – usually used to make profits at the desired level or to make profits.
- Stop restriction order: A combination of conditional order and restriction order. When the market reaches a stop price, the system orders the restricted order. Traders often use this type of order to stop damage or confirm breakthroughs.
- Frozen Market Orders: Just like parking restrictions, but once the trigger price is reached, the system converts it into a market order and fills it immediately at the current price. This helps to quickly exit the position in an emergency.
- Get Profit (TP) / Stop Loss (SL): binance allows users to preset TP and SL levels when opening a position. These tools help minimize risk and automate exit strategies, making them an important part of leveraged trading risk management.
Setting and adjusting leverage
Binance Futures allows users to adjust their leverage ratio from 1X to 125 times depending on the trading pair. Before opening a position, you can click the icon next to the “Trading Pair” name to set your preferred leverage level.
Higher leverage increases risk, so beginners should start with low leverage (about 3 to 5 times) to manage risk more safely.
Manage jobs and monitor liquidation prices
When opening a position, the user must monitor the liquidation price – the system will automatically close the position at this price to prevent negative balances.
If your margin ratio reaches 100%, the system immediately liquidates your location, indicating a critical level of risk. To avoid this, if the ratio is close to the critical level, more margin or adjustment position should be added.
Transaction fees and funding fees
Binance uses the manufacturer’s fee model. If you place an order and increase liquidity by adding the order book (manufacturer), you pay a lower fee of about 0.02%. By comparison, if you match an existing order (Taker), the fee is higher – about 0.04%, depending on your account level.
In addition, traders should pay close attention to fund fees, a mechanism designed to align futures prices with spot prices. Traders in the market relative terms – long (buy) and short (sell), exchange fees every 8 hours.
- Positive funding rate (e.g. +0.01%): The fees paid for a long position to a short position. This usually happens when the market is bullish, long-term shorts.
- Negative funding rate (e.g. -0.02%): Short positions pay for long positions. This usually happens in bearish markets where shorts dominate.
Example: If you open a long position worth $100,000 in BTCUSDT with 10x leverage, and currently has a financing rate of -0.03%, you will get $30 every 8 hours from short traders every 8 hours (as long as you maintain the position). Conversely, when the funding rate is +0.03%, you pay $30 every 8 hours.
Financing costs are variable and may fluctuate significantly depending on the differences between futures and spot prices and overall market sentiment. Therefore, it is crucial to monitor funding rates and carefully plan your holding duration before opening a position to avoid unnecessary losses or loss of negative funds.
Important notes for beginners
Although this guide focuses on the Binance Futures interface, it is worth noting that most major centralized exchanges offer similar futures trading products. Core features such as leverage, contract type (USDT-M, COIN-M) and order type are largely consistent across platforms.
This means that once you become familiar with how it works in the future, you will transition to other communications.
For beginners, starting with a second-hand company is a strategic choice. As the deepest liquidity and the highest daily derivatives trading exchange, it provides smoother trade execution and stricter spreads when dealing with high leverage instruments, which are the fundamental factors. Binance also provides a wide range of educational content and risk management tools to support new traders.
Once you have gained experience and confidence, you can explore other well-known platforms that offer competitive futures products such as Bybit, Okx, Kucoin…
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