-
Bitcoin
$119000
-2.21% -
Ethereum
$4310
-0.36% -
XRP
$3.161
-3.22% -
Tether USDt
$1.000
0.03% -
BNB
$812.2
-1.26% -
Solana
$176.5
-5.11% -
USDC
$1.000
0.03% -
Dogecoin
$0.2260
-5.88% -
TRON
$0.3467
1.53% -
Cardano
$0.7865
-5.01% -
Chainlink
$21.63
-3.31% -
Hyperliquid
$43.59
-5.84% -
Stellar
$0.4382
-3.25% -
Sui
$3.697
-6.32% -
Bitcoin Cash
$596.6
3.58% -
Hedera
$0.2495
-6.30% -
Ethena USDe
$1.001
-0.01% -
Avalanche
$23.16
-5.65% -
Litecoin
$120.0
-4.63% -
Toncoin
$3.389
-0.42% -
UNUS SED LEO
$9.014
-1.12% -
Shiba Inu
$0.00001309
-5.32% -
Uniswap
$11.37
0.83% -
Polkadot
$3.917
-5.45% -
Cronos
$0.1680
-0.46% -
Dai
$1.000
0.01% -
Ethena
$0.8057
-4.53% -
Bitget Token
$4.423
-1.61% -
Monero
$263.2
-1.83% -
Pepe
$0.00001133
-7.81%
How to play Binance u-based contracts
To effectively navigate Binance's U-based contracts, familiarize yourself with key concepts like leverage, margin, and funding rate, while implementing risk management strategies using stop-loss and take-profit orders.
Feb 17, 2025 at 09:07 am

Binance U-based Contracts Guide
Key Points
- Understand Binance U-based contracts and leverage trading.
- Setting up a Binance account for U-based contracts trading.
- Funding your account and understanding U-based contract terminology.
- Placing long and short trades on U-based contracts.
- Managing risk with stop-loss and take-profit orders.
- Understanding special features of U-based contracts and platform guides.
- Common mistakes to avoid when trading U-based contracts.
Steps to Play Binance U-based Contracts
1. Understand Binance U-based Contracts and Leverage Trading
Binance U-based contracts are perpetual contracts that track the value of the underlying asset, in this case, Bitcoin or other cryptocurrencies. They are unique because they offer leverage, which allows you to trade with more capital than you have available in your account. This can amplify both profits and losses, so it's crucial to understand leverage and use it cautiously.
2. Setting Up a Binance Account for U-based Contracts Trading
To create a Binance account for U-based contracts trading, you must complete KYC verification. Once verified, navigate to Binance's website, hover over "Derivatives," and select "U-based Futures." You'll find a trading terminal with an order book, chart, and trading functions.
3. Funding Your Account and Understanding U-based Contract Terminology
To trade U-based contracts, you need to fund your account with fiat or cryptocurrency. Once funded, familiarize yourself with U-based contract terminology, such as margin, funding rate, and liquidation price. Margin is the collateral you put up for a trade, while the funding rate adjusts the balances between long and short positions, and the liquidation price determines when your position is forcibly closed to prevent losses exceeding your margin.
4. Placing Long and Short Trades on U-based Contracts
To open a long trade, where you expect the price to rise, select "Buy/Long" and input the amount of contracts or leverage desired. To open a short trade, where you expect the price to fall, select "Sell/Short" and specify the trading details.
5. Managing Risk with Stop-Loss and Take-Profit Orders
Proper risk management is key. Stop-loss orders close your position when the market reaches a predetermined price to limit potential losses. Take-profit orders close your position when a profit target is reached to secure gains. Set these orders wisely to minimize risks.
6. Understanding Special Features of U-based Contracts and Platform Guides
Binance U-based contracts offer unique features like cross-margin mode, where multiple positions share the same margin, and isolated margin mode, where each position has its own margin. Explore these features to enhance your trading strategies. Utilize Binance's platform guides and tutorials to familiarize yourself with specific features and functions.
7. Common Mistakes to Avoid When Trading U-based Contracts
Overleveraging: Use leverage cautiously, as it can magnify losses as well as profits.
Ignoring stop-loss orders: Failing to set stop-loss orders can lead to significant losses.
Trading emotionally: Avoid letting emotions influence your trading decisions.
Not practicing risk management: Implementing sound risk management practices is crucial for long-term success.
Lack of knowledge: Research and gain a thorough understanding of U-based contracts before trading.
FAQs
What are the benefits of using leverage in U-based contracts?
Leverage allows traders to increase their trading size by borrowing capital from the exchange, potentially amplifying both profits and losses.
How is the funding rate for U-based contracts calculated?
The funding rate aims to keep the market value of U-based contracts in line with the spot market. Long positions pay short positions a funding fee when the contract trades at a premium over spot. Conversely, short positions pay long positions when the contract trades at a discount.
What can cause a liquidation in U-based contracts?
Liquidation occurs when the margin balance of a trader falls below the required level due to unfavorable price movements in relation to the trader's position.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- Dogecoin, Presale, Surge: Riding the Meme Coin Wave
- 2025-08-12 11:10:12
- Dogecoin, Tron, and the ROI Reality Check: What's a Crypto Investor to Do?
- 2025-08-12 11:15:12
- Ethereum Layer-2 Scaling Competition Heats Up as ETH Breaks $4K
- 2025-08-12 10:30:12
- China Regulation, Stablecoins, and BNB Presale: Navigating the Crypto Landscape
- 2025-08-12 11:30:12
- Meme Coins, Investment, and Token Burns: What's Hot in 2025?
- 2025-08-12 10:30:12
- China's National Security Alarm Bells Ring Over Worldcoin's Iris Scans
- 2025-08-12 11:35:12
Related knowledge

Is it possible to adjust the leverage on an open position on KuCoin?
Aug 09,2025 at 08:21pm
Understanding Leverage in KuCoin Futures TradingLeverage in KuCoin Futures allows traders to amplify their exposure to price movements by borrowing fu...

What cryptocurrencies are supported as collateral on KuCoin Futures?
Aug 11,2025 at 04:21am
Overview of KuCoin Futures and Collateral MechanismKuCoin Futures is a derivatives trading platform that allows users to trade perpetual and delivery ...

What is the difference between realized and unrealized PNL on KuCoin?
Aug 09,2025 at 01:49am
Understanding Realized and Unrealized PNL on KuCoinWhen trading on KuCoin, especially in futures and perpetual contracts, understanding the distinctio...

How does KuCoin Futures compare against Binance Futures in terms of features?
Aug 09,2025 at 03:22am
Trading Interface and User ExperienceThe trading interface is a critical component when comparing KuCoin Futures and Binance Futures, as it directly i...

How do funding fees on KuCoin Futures affect my overall profit?
Aug 09,2025 at 08:22am
Understanding Funding Fees on KuCoin FuturesFunding fees on KuCoin Futures are periodic payments exchanged between long and short position holders to ...

What is the distinction between mark price and last price on KuCoin?
Aug 08,2025 at 01:58pm
Understanding the Basics of Price in Cryptocurrency TradingIn cryptocurrency exchanges like KuCoin, two key price indicators frequently appear on trad...

Is it possible to adjust the leverage on an open position on KuCoin?
Aug 09,2025 at 08:21pm
Understanding Leverage in KuCoin Futures TradingLeverage in KuCoin Futures allows traders to amplify their exposure to price movements by borrowing fu...

What cryptocurrencies are supported as collateral on KuCoin Futures?
Aug 11,2025 at 04:21am
Overview of KuCoin Futures and Collateral MechanismKuCoin Futures is a derivatives trading platform that allows users to trade perpetual and delivery ...

What is the difference between realized and unrealized PNL on KuCoin?
Aug 09,2025 at 01:49am
Understanding Realized and Unrealized PNL on KuCoinWhen trading on KuCoin, especially in futures and perpetual contracts, understanding the distinctio...

How does KuCoin Futures compare against Binance Futures in terms of features?
Aug 09,2025 at 03:22am
Trading Interface and User ExperienceThe trading interface is a critical component when comparing KuCoin Futures and Binance Futures, as it directly i...

How do funding fees on KuCoin Futures affect my overall profit?
Aug 09,2025 at 08:22am
Understanding Funding Fees on KuCoin FuturesFunding fees on KuCoin Futures are periodic payments exchanged between long and short position holders to ...

What is the distinction between mark price and last price on KuCoin?
Aug 08,2025 at 01:58pm
Understanding the Basics of Price in Cryptocurrency TradingIn cryptocurrency exchanges like KuCoin, two key price indicators frequently appear on trad...
See all articles
