What Is Futures Trading?
Futures trading lets you speculate on cryptocurrency price movements with leverage — amplifying both potential profits and losses.
Key Concepts
Leverage
Leverage multiplies your position size. With 10x leverage, $100 controls a $1,000 position.
| Leverage | Position Size | Liquidation Distance |
|---|---|---|
| 1x | $100 | ~100% |
| 5x | $500 | ~20% |
| 10x | $1,000 | ~10% |
| 20x | $2,000 | ~5% |
Long vs Short
- Long: Profit when price goes up
- Short: Profit when price goes down
Margin Modes
- Cross margin: Entire futures balance used as collateral
- Isolated margin: Only allocated amount at risk
Getting Started on Binance Futures
- Sign up with code RATE20 for 20% fee discount
- Complete KYC verification
- Open a futures account (take the quiz)
- Transfer USDT to futures wallet
- Place your first trade
Recommended Settings for Beginners
- Leverage: 2-3x maximum
- Margin mode: Isolated (limits your loss)
- Position size: Risk 1-2% of account per trade
- Stop-loss: Set BEFORE entering every trade
Order Types
| Order | When to Use |
|---|---|
| Market | Need to enter/exit immediately |
| Limit | Want a specific price (lower fees) |
| Stop Market | Stop-loss protection |
| Stop Limit | Stop-loss with price limit |
| Take Profit | Automatic profit-taking |
| Trailing Stop | Lock in profits as price moves |
Common Beginner Mistakes
- Too much leverage — Start with 2-3x, not 20x
- No stop-loss — Every trade needs one
- Overtrading — Quality over quantity
- Revenge trading — Don’t chase losses
- Ignoring funding rates — They add up over time
2 min read
Before you create an account
A final signup check, before any first trade
Binance must display SmallDrift, RATE20, and the 20% fee discount in its signup flow. If it does not, do not assume the offer will be applied after account creation.
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