A step-by-step guide to start trading futures on Binance:
1. Create and Verify Your Binance Account
Sign Up: Go to Binance, (https://www.binance.com) and create an account if you don’t have one.
Complete KYC: Verify your identity (required to unlock futures trading).
Enable 2FA: For security, enable Two-Factor Authentication (Google Authenticator or SMS).
2. Enable Futures Trading
Navigate to the “Derivatives” section in the top menu and select “USDT-M Futures” or “COIN-M Futures”.
Complete the quiz if prompted (required for first-time futures traders).
3. Deposit Funds into Your Futures Wallet
Go to Wallet > Futures Wallet.
Transfer funds (e.g., USDT or BUSD) from your spot wallet to your futures wallet.
Alternatively, you can deposit directly to your Futures Wallet via cryptocurrency.
4. Learn the Basics of Futures
Understand USDT-M Futures (stablecoin-margined) and COIN-M Futures (crypto-margined) contracts
Familiarize yourself with:
Leverage: Control larger positions with smaller funds.
Mark Price vs. Last Price: To avoid liquidation.
Funding Rate: Costs for holding positions.
Types of Orders:
Limit
Market
Stop Limit/Stop Market
5. Choose the Right Futures Pair
Select a trading pair (e.g., BTC/USDT, ETH/USDT).
Assess market trends using Binance’s charting tools or external platforms.
6. Adjust Leverage
Click on the leverage amountnear the trading pair name.
Adjust leverage (e.g., 1x to 125x). Be cautious—higher leverage increases risk.
7. Place an Order
Navigate to the Order Panel:
Buy/Long: Profits if the price goes up.
Sell/Short: Profits if the price goes down.
Order Types:
Market Order: Immediate execution.
Limit Order: Executed at a specific price.
Stop Loss/Take Profit: Manage risk and lock in profits.
8. Monitor Your Position
Track your position under the “Positions” tab.
Watch for:
Margin Ratio: Avoid liquidation.
Unrealized PnL (Profit and Loss): Current gains or losses.
9. Close Your Position
Manually close your trade when your target profit or stop-loss is hit.
Use “Market” close for immediate closure or “Limit” close to exit at a desired price.
10. Withdraw Profits
Transfer funds back to your Spot Wallet if you wish to withdraw them.
Latest Binance Updates for Futures Trading (2024)
1.Dual Investment Feature: Now integrated into futures for advanced strategies.
2. Auto-Deleveraging (ADL): Enhanced transparency on liquidation ranking.
3. USDⓈ-M and COIN-M Futures Expansion: New pairs added regularly.
4. Trading Bots for Futures: Use AI-powered strategies via "Binance Strategy Trading" .
Risk Management Tips
Only trade with funds you can afford to lose.
Use "stop-loss orders" to minimize risks.
Avoid excessive leverage unless experienced.
Continuously monitor Binance’s "Futures Updates" for new tools or rules.
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