Now that you understand what futures are, let’s walk through how to actually trade them on Binance, step by step.

1. Open and Verify Your Binance Account

If you already have a regular Binance account, you can access the Futures section from your dashboard. If not, sign up at Binance.
For security, enable two-factor authentication (2FA) and complete identity verification (KYC). This gives you higher withdrawal and trading limits.

2. Fund Your Futures Wallet

You’ll trade using USDT (a stablecoin pegged to the U.S. dollar). Transfer some USDT from your main wallet to your Futures Wallet, this will be your margin (the money you trade with).

3. Choose Your Trading Pair

Let’s use BTCUSDT as an example. This pair tracks Bitcoin’s future price against USDT. Binance also offers hundreds of others like ETHUSDT, SOLUSDT, or new launches like COMMONUSDT, which was added in October 2025.

4. Understand Leverage

Leverage lets you control a larger trade with less capital. For instance:

  • With 5× leverage, a $100 deposit lets you open a $500 position.

  • With 10× leverage, that same $100 controls $1,000 worth of BTC.

But leverage cuts both ways. If BTC moves 5% in your favor, you earn 25–50% profit depending on your leverage. If it moves 5% against you — you can lose your entire $100.
That’s called liquidation, when your position is automatically closed to prevent deeper losses.

Tip: Beginners should stick to 2×–5× leverage. It offers exposure without wiping your balance on small moves.

5. Pick Your Margin Mode

You can trade in two modes:

  • Isolated Margin: Only your chosen position is affected. If it goes bad, you lose just that portion.

  • Cross Margin: Your entire futures balance backs all positions. If one trade fails, it can drain your whole account.

For new traders, Isolated Mode is safer.

6. Place Your First Trade

There are two main order types:

  • Market Order: Executes instantly at the current price.

  • Limit Order: Executes only when the price hits your chosen level.

Example:
You believe BTC will rise from $100,000 to $105,000.
You open a long with $100 at 5× leverage → controlling $500 of BTC.

  • If BTC climbs 5%, you earn $25 (25% profit).

  • If it drops 5%, you lose $25.

Set a stop-loss before confirming your order for instance, close the trade automatically if BTC falls 2%.

7. Practice First

Binance offers a demo mode for futures trading. It simulates real trades using virtual money. Spend time here until you’re confident with the buttons, order types, and how your P&L moves with price changes.

By this point, you’ll understand what it feels like to open, manage, and close a position the foundation for all advanced trading.