To trade futures on Binance: open a futures account (you may need to complete a short quiz), transfer USDT from Spot to your USDⓈ-M Futures wallet, choose a contract such as BTCUSDT Perpetual, set Isolated margin and low leverage, place a Long or Short order, and set a stop-loss straight away. Futures let you profit when prices rise or fall, but leverage magnifies losses just as much as gains, and a position can be liquidated in minutes. Only use money you can afford to lose, and learn spot trading first.

No account yet? Sign up at https://www.binance.com/join?ref=BNBEN (full steps: How to Open a Binance Account). Referral code BNBEN gives a 20% trading fee discount under Binance's referral terms, and it can only be added at registration.

What are Binance futures?

A futures contract lets you trade the price of a coin without owning it. Binance's most popular product is USDⓈ-M perpetual futures, which are:

  • Margined and settled in USDT (or USDC)

  • Perpetual, with no expiry date, so you can hold a position as long as your margin allows

  • Two-way: go Long if you think the price will rise, or Short if you think it will fall

Key terms:

  • Margin: the money you put up for a position

  • Leverage: how many times your margin is multiplied. With 5x, $100 of margin controls a $500 position.

  • Liquidation: if losses eat through your margin, Binance closes your position automatically, and you lose that margin.

  • Funding rate: a periodic payment between long and short traders that keeps the perpetual price close to the spot price, typically every 8 hours on many contracts.

Before you start

  1. A verified Binance account. Futures availability depends on your country, and Binance.com does not serve US residents.

  2. Spot experience. If you have not bought crypto yet, start with How to Buy USDT on Binance P2P.

  3. Money you can afford to lose. Many beginners lose money on futures. Treat your first futures trades as practice.

Step 1: Open your futures account

Go to Derivatives > USDⓈ-M Futures, or tap Futures in the app. Follow the prompts to open a futures account. Binance may ask you to complete a short quiz or questionnaire about how futures work before you can trade. Read each question carefully, because it covers the same risks this guide explains.

Step 2: Transfer USDT to your Futures wallet

Futures use a separate wallet. Go to Assets > Transfer, choose From: Spot (or Funding) and To: USDⓈ-M Futures, select USDT, and enter the amount. The transfer is free and instant. If you don't have USDT yet, see How to Deposit Money Into Binance.

Transfer only what you plan to risk, not your whole balance.

Step 3: Set margin mode and leverage

At the top of the order panel:

  • Margin mode: choose Isolated. With isolated margin, a losing position can only lose the margin assigned to it. Cross margin uses your whole futures balance to support all positions, which means one bad trade can drain the entire wallet.

  • Leverage: choose a low number, between 2x and 3x for your first trades. Binance offers leverage up to 125x on some contracts, but high leverage puts your liquidation price very close to your entry price.

How leverage changes your risk (rough guide, isolated, ignoring fees):

  • 2x: a price move of about 50% against you can liquidate you

  • 5x: about 20%

  • 10x: about 10%

  • 20x: about 5%

  • 50x: about 2%, which BTC can move in a single hour

Step 4: Place your first order

  1. Choose the contract, for example BTCUSDT Perpetual.

  2. Choose an order type: Limit (you set the entry price) or Market (enter immediately).

  3. Enter the size. Start very small.

  4. Tick TP/SL to add a take-profit and stop-loss with the order.

  5. Tap Buy/Long or Sell/Short.

After the order fills, check the Positions tab:

  • Entry price and mark price

  • Liquidation price: make sure your stop-loss is well before it

  • Margin ratio: the higher it gets, the closer you are to liquidation

  • Unrealized PnL: your current profit or loss

Step 5: Manage and close the position

  • Close manually: in Positions, tap Close and choose Market or Limit.

  • Let your TP/SL work: they close the position automatically at your chosen prices.

  • Never add margin to "save" a losing trade without a plan. Averaging down on leverage is how most liquidations happen.

Binance futures fees

For regular users on USDⓈ-M futures:

  • Maker: 0.02%

  • Taker: 0.05%

  • Paying fees with BNB: 10% off

Fees are charged on the full position size, not on your margin, and you pay when you open and again when you close. Example: $200 of margin at 5x leverage is a $1,000 position. A market order costs about $0.50 to open and about $0.50 to close. Funding payments come on top, and you may pay or receive them depending on the rate and your direction.

The full breakdown of spot and futures fees, and how to lower them, is in the next part of this series.

7 futures rules that keep beginners alive

  1. Use Isolated margin.

  2. Keep leverage at 2x–3x until you have a track record.

  3. Set a stop-loss on every trade, before the price moves.

  4. Never risk more than 1–2% of your total funds on one trade.

  5. Don't trade around major news or sudden spikes.

  6. Don't revenge-trade after a loss.

  7. Keep most of your crypto in spot. Futures should be a small part of your activity.

FAQ

Is Binance futures good for beginners?

Futures are an advanced product. Beginners should learn spot trading first, then try futures with very small amounts, low leverage, and stop-losses.

What is the minimum amount to trade Binance futures?

Each contract has a minimum order size, shown on the order panel. You can start with a small amount of USDT.

Can I lose more than I put in?

With Isolated margin, your loss on a position is generally limited to the margin assigned to it. In extreme, fast markets, losses can still exceed expectations. Follow Binance's risk disclosures.

What is the difference between USDⓈ-M and COIN-M futures?

USDⓈ-M futures use USDT or USDC as margin. COIN-M futures use the coin itself, such as BTC, as margin. Beginners usually start with USDⓈ-M.

Why was I liquidated before my stop-loss?

Usually the stop-loss was too close to the liquidation price, or the price moved too fast in a volatile market. Use lower leverage, so the liquidation price is far from your entry.

Summary

  1. Sign up at https://www.binance.com/join?ref=BNBEN and verify your account

  2. Open a futures account and complete the quiz if one is shown

  3. Transfer only the USDT you plan to risk to your USDⓈ-M Futures wallet

  4. Choose Isolated margin and 2x–3x leverage

  5. Place a small order with TP/SL set

  6. Watch the liquidation price and close positions according to your plan

Risk warning and disclosure: futures trading involves high risk, and you can lose your entire margin quickly. This post is for education only and is not financial advice. Product availability, leverage limits, and fees vary by region and can change.