What is Binance Futures Trading?

Binance Futures is a platform where you can trade futures contracts of cryptocurrencies (like Bitcoin, Ethereum, etc.) — that means you're not buying the actual coin, but betting on its future price.

How It Works:

Choose a Contract:

Example: BTCUSDT Perpetual

It means you're trading Bitcoin against USDT (a stablecoin).

Long or Short:

Long = You think the price will go up.

Short = You think the price will go down.

Use Leverage:

Binance lets you borrow more money to trade.

Example: 10x leverage means if you have $100, you can trade as if you have $1,000.

High risk, high reward (and also high loss).

Profit or Loss:

If the market moves in your favor, you earn.

If not, you lose — and with leverage, the loss can be bigger than your original money.

Perpetual Contracts:

Unlike traditional futures, Binance Perpetual contracts have no expiry date.

They stay open until you close them or get liquidated.

Key Terms:

Margin: The amount of money you need to open a trade.

Liquidation: If your trade goes badly, Binance closes it to avoid bigger loss.

Funding Rate: A small fee paid between traders (longs vs. shorts) every 8 hours.

Is It Safe?

Can be profitable, but very risky, especially with leverage.

Not recommended for beginners without practice or knowledge.