The Ultimate Guide to Binance Futures: From Setting Up Your Account to Executing Your First Trade

This guide will walk you through everything you need to know to get started with Binance Futures, from setting up your account to executing your first trade safely and strategically.

Binance Futures is one of the most advanced and widely used cryptocurrency derivatives platforms in the world, offering traders the opportunity to profit from both rising and falling markets.

Whether you’re a beginner looking to understand the basics or a seasoned investor exploring advanced tools like leverage, funding rates, and risk management, this guide will walk you through everything you need to know to get started with Binance Futures, from setting up your account to executing your first trade safely and strategically.

What are Futures Contracts?

Futures contracts are a type of financial derivative that allow traders to speculate on the future price of an asset, without needing to own the asset itself. In the world of cryptocurrency, futures enable users to profit from both rising and falling markets by entering long or short positions.

These contracts typically have an expiration date and are often settled in cash or crypto, depending on the platform. Futures trading is popular among advanced investors for its leverage, flexibility, and potential for hedging against market volatility.

What is Binance Futures?

Binance Futures is a derivatives trading platform operated by Binance, the world’s largest cryptocurrency exchange.

With leverage of up to 125x and a diverse range of contracts (USDT-M and COIN-M), Binance Futures has become an increasingly popular tool for professional traders seeking to capitalize on price volatility.

Moreover, before using Binance Futures, you need to understand the concepts of Long/Short:

Why Futures?

Unlike spot trading, where profits are generally tied to long-term asset appreciation, futures allow you to actively trade market volatility. This makes them a preferred instrument for traders who thrive on momentum, news-based movements, or technical patterns. Whether the market is going up or down, there are opportunities to earn — if you can predict the direction accurately.

Used responsibly, futures can deliver exceptional returns. In fact, the global crypto derivatives market has seen explosive growth in recent years. According to recent data:

More than just a trading tool, Binance Futures offers a suite of features designed for modern crypto traders: low fees, deep liquidity, risk management tools (like Stop-Loss and Take-Profit), and an intuitive user interface. These elements make it a solid starting point for anyone looking to take advantage of short-term market swings — from seasoned professionals to motivated beginners.

Read more: Trading with Free Crypto Signals in Evening Trader Channel

Create and KYC Your Binance Account

Users should visit the official Binance website to register an account and complete identity verification (KYC) if they haven’t done so already.

Once logged in, navigate to the “Derivatives” tab on the main menu and select either “USDT-M Futures” or “COIN-M Futures” depending on your trading preferences. Binance will require you to enable 2FA (Two-Factor Authentication) to enhance account security.

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Deposit Funds into Your Futures Wallet

To start trading, users need to hold a stable asset such as USDT in their Spot Wallet. If you don’t have USDT yet, you can purchase it via Binance’s P2P Trading feature, which allows you to buy USDT using USD or other popular payment methods like bank transfers.

Once you have USDT in your Spot Wallet, you need to transfer it to your Futures Wallet to use it for trading futures contracts. Go to the "Wallet" section, select "Futures," click on "Transfer," choose the asset type (e.g., USDT), and enter the amount you wish to transfer.

Types of Contracts and How to Choose

Binance Futures offers two types of contracts:

The choice between contract types depends on your risk appetite and trading strategy. If you prioritize stability and transparent capital management, USDT-M is the ideal choice. On the other hand, if you have strong confidence in your base asset and want to optimize returns in coin units, COIN-M may offer better long-term value.

Interface and Key Components

The Binance Futures trading interface is designed to give users full control over their trading decisions while displaying essential market data in real time. Here’s a detailed breakdown of its key components:

Basic Order Types

User Score

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-10% Trading Fees

Get 10% Lifetime Cashback On Every Trade

Setting and Adjusting Leverage

Binance Futures allows users to adjust leverage from 1x to 125x 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 — around 3x to 5x — to manage risk more safely.

Managing Positions and Monitoring Liquidation Price

When opening a position, users must monitor the liquidation price — the system will automatically close the position at this price to prevent a negative balance.

The system liquidates your position immediately if your Margin Ratio reaches 10