"Bian" (变) is a common candidate word when typing "bian" in a Chinese input method, and it refers to Binance. Futures trading is a feature that many advanced users are interested in on Binance. Before getting started, make sure you have already registered on Binance and completed verification, and download the Binance app for the best trading experience.
What Is Futures Trading
Futures trading differs from spot trading in that it allows you to profit by predicting whether prices will go up or down, without actually holding any cryptocurrency. You can:
- Go long: If you believe the price will rise, buy to profit from the price increase
- Go short: If you believe the price will fall, sell short to profit from the price decrease
Futures trading also supports leverage, which lets you control a larger position with less capital, but it also amplifies the risk.
Types of Binance Futures
USDT-Margined Futures
Uses USDT as margin and settlement currency. This is the most common type of futures contract. Profit and loss are calculated in USDT, making it straightforward.
Coin-Margined Futures
Uses the corresponding cryptocurrency as margin. For example, BTC futures use BTC as margin. This is suitable for users who hold a particular cryptocurrency long-term.
How to Activate Futures Trading
- Open the Binance app and find the "Futures" entry
- First-time users need to activate a futures account
- Read and agree to the risk disclosure
- Complete a futures knowledge quiz (simple multiple-choice questions)
- Once activated, transfer funds from your spot account to your futures account
Basic Futures Trading Operations
Placing Your First Trade
- Select a trading pair, such as BTCUSDT perpetual futures
- Choose the leverage multiplier (beginners are advised to start with low leverage, such as 3x or 5x)
- Choose to go long or short
- Enter the quantity and confirm the order
Setting Take-Profit and Stop-Loss
After opening a position, always set take-profit and stop-loss levels — this is critical for risk management:
- Take-profit: Automatically closes the position to lock in profits when the price reaches your target
- Stop-loss: Automatically closes the position to limit losses when the price moves against you
The Risk of Leverage
Leverage is a double-edged sword. For example, with 10x leverage:
- If the price moves 1% in your predicted direction, your profit is 10%
- If the price moves 1% in the opposite direction, your loss is also 10%
- If losses reach a certain level, forced liquidation is triggered and all margin is lost
Tips for Beginners Trading Futures
- Practice with a demo account first — Binance offers simulated trading
- Start with small amounts and low leverage
- Set a stop-loss for every trade — never rely on luck
- Do not use full margin — keep sufficient reserves
- When in doubt, do not trade — learn first, then practice
- Futures carry risk, and losses can exceed your principal — trade within your means
Futures Trading Fees
Binance futures fees are divided into maker fees and taker fees, with specific rates varying by user tier. Holding BNB provides a fee discount. The funding rate is settled every 8 hours, and you should be aware of this while holding positions.