Hello, and welcome to this tutorial dedicated to Binance Futures – USDT-Ⓜ Futures Contracts, one of the most widely used and diversified derivative exchanges (platform for trading cryptocurrency with leverage) in the market. I will explain to you step by step how to register on this platform? How to use leverage? How to use different orders? But also how to avoid being liquidated?
Launched in September 2019, Binance Futures is a futures trading platform that allows traders to use leverage (up to x125) and open long and short positions with a variety of cryptocurrencies.
💡 If you’re a novice, I suggest you start by reading the article Binance Tutorial. You might want to start from there and avoid leverage trading in a first place.
Leverage Trading involves a risk of loss. Please consider carefully if such trading is appropriate for you. Past performance is not indicative of future results. Articles and content on this website are for entertainment purposes only and do not constitute investment recommendations or advice.
- Binance Futures, the leader in futures contracts
- How do I open an account at Binance Futures?
- The Binance Futures interface
- Transfer funds to your Binance Futures account
- Adjusting your leverage
- Differences Between Spot Trading and Futures Trading
- The Different Fees in Futures Trading
- Available orders and their use
- What is Post-Only, Time in Force, and Reduce-Only?
- Types of Position Mode
- How do I use the Binance Futures calculator?
- When are your positions likely to be liquidated?
- Binance Futures Notes and Review
Binance Futures, the leader in futures contracts
Overall, this platform strongly resembles Binance’s spot exchange platform. For users, the experience is just as fluid, and the execution of transactions is relatively intuitive.
Since its deployment, Binance Futures has quickly established itself as one of the leading futures trading platforms. In just 7 months, Binance Futures has become the most widely used platform on the market, ahead of Huobi, OKEx, and BitMEX.
However, the latter is not for everyone and will generally be reserved for traders who already have knowledge in the field and good risk management.
💡 Although leverage may seem like a good way to make significant gains, keep in mind that the risks involved are significant. Liquidations can be almost instantaneous if the leverage chosen is too high or if your strategy is not suitable.
For these reasons, I will explain to you step by step how this platform works while detailing the different aspects of such trading.
If you are not familiar with leverage, please feel free to discover how it works and its potential risks through this course.
How do I open an account at Binance Futures?
Before opening a Binance Futures account, you must have a regular Binance account. If you do not have one, you can consult our tutorial on the subject.
I strongly recommend that you consult this tutorial if you are not familiar with the use of Binance. It is necessary to know how the basic platform works if you want to understand the full functionality of Binance Futures.
If you already have an account, click on the button below to access Binance Futures.
10% discount on your trading fees with the code novablocks
Now that you are on the platform, go to the bottom right and click on Open Now.
The Binance Futures Interface
Once your account is activated, you now have access to all the features of Binance Futures and its interface. Let’s look at how this interface is made up and how it differs from Binance Spot.
At the very top is the Binance Futures menu. It allows you to access USDT futures, COIN Futures, Information such as Guides and Funding-Rates, Access to API, Spot Exchange, discover Activities such as Battle and Leaderboard, and access the referral program through the Earn Bonus Button :
Just below, you can find a lot of information related to the pair you have previously selected, here BTC/USDT.
This is where you can :
- Choose the contract you wish to negotiate.
- Consult its price.
- Change the Margin mode between Cross and Isolated, and the leverage.
- Consult the latest market price of the contract. This is the price used to calculate profit and loss. It may differ from the live price to avoid manipulation.
- Consult the Rate of the next funding between buyers and the sellers.
- Consult various other market data, such as variations and volume over the last 24 hours.
To change the contract, click on BTCUSDT and choose the one you are interested in:
Compared to the competition, Binance Futures offers you futures contracts for a significant number of cryptocurrencies. These include ETH, BCH, XRP, EOS, LTC, TRX, ETC, LINK, XLM, ADA, XMR, DASH, ZEC, XTZ, BNB, ATOM, ONT, IOTA, BAT, VET, NEO, QTUM, IOST.
Below, you will find the chart for the selected contract. You have the possibility to change the unit of time (minutes, hours, days, etc.), to add indicators (MACD, volume, etc.), and to use several drawing tools for technical analysis: trend lines, supports/resistances, etc …
I recommend you to chose the TradingView option if you are used to TradingView drawing tools.
On the right side of the chart, you will find all information about the open orders. The first tool on the left of this section allows you to overview the situation between buyers and sellers quickly. You can zoom in and out using the scroll wheel on your mouse.
On the right, you can see live buy and sell orders and the latest transactions. You can adjust the orders’ accuracy in the drop-down menu in this area’s upper right corner (0.01 by default).
On the far right, this is where you can place your orders and change your leverage. I detail this section in the rest of the tutorial.
Just below is the section dedicated to deposits, withdrawals, and reloading your Binance Futures wallet:
Finally, the bottom section allows you to monitor your trading activity. You can check the current status of your positions, view your open orders, and get a complete history of past trades:
Transfer funds to your Binance Futures account
To use Binance Futures, you must first deposit funds into it. Since each platform has its own portfolio, the funds it contains cannot be mixed.
However, you can transfer funds back and forth between the Binance Spot Wallet and your Binance Futures Wallet. The transfer is almost instantaneous and free of charge. It is only possible to transfer Tether (USDT) and BNB between the two portfolios.
To transfer funds to your Binance Futures wallet, click on the Transfer button at the bottom right of the page. Define the cryptocurrency and the amount you wish to transfer and click Confirm Transfer:
Adjusting your leverage
Binance Futures allows you to manually adjust the leverage and its mode for each of the available contracts.
To adjust the leverage, click on the “20x” button in the order entry section. Specify the degree of leverage by adjusting the slider, then click on Confirm:
Using leverage will allow you to open a larger amount using fewer funds (here USDT) as collateral. When using a 3x leverage, if you open a 1 BTC long order at $15,000 USDT, it will only cost you $5,000 USDT. However, if the price drops more than 33% (100/3) under your entry price, you are risking a liquidation of that order.
If you are unfamiliar with margin trading notions, I recommend you read our course explaining margin trading basics.
Finally, Binance Futures offers you to change the Margin Mode for all the pairs you are trading on: