To trade futures on Binance, you first need to open a futures account. Futures trading is separate from spot trading, and you must enable it individually. The process is straightforward, but there are some prerequisites and important considerations to be aware of. Sign up on Binance is the first step.
Prerequisites for Opening a Futures Account
Complete KYC Verification
Binance requires users to complete identity verification (KYC) before opening a futures account. If you haven't done KYC yet, you need to complete this step first.
Understand the Risks
Futures trading is a high-risk derivatives activity. Using leverage can lead to losses exceeding your initial capital. Binance will ask you to read the risk disclosure and confirm that you understand the associated risks when opening a futures account.
Age Requirement
Users must be at least 18 years old to open a futures account.
Steps to Open a Futures Account
Via the App
Step 1: Open the Binance App, tap "Trade" at the bottom
Step 2: Switch to the "Futures" tab at the top of the trading page
Step 3: If this is your first time, the system will display the futures activation page
Step 4: Read the risk disclosure and terms of service for futures trading
Step 5: You may need to complete a short quiz to test your basic understanding of futures trading. Questions typically cover:
- What is leverage
- What is liquidation
- Risks of futures trading
- The concept of margin
Step 6: After passing the quiz, confirm to open your futures account
Via the Website
- Log in to Binance on the web
- Navigate to "Derivatives" then "Futures"
- Follow the on-screen prompts to complete the risk assessment and activation process
Settings After Futures Account Activation
Transfer Funds
Futures and spot accounts have separate balances. After activation, you need to transfer funds from your spot account to your futures account:
- In the App, tap "Assets" then "Transfer"
- Select from "Spot Account" to "Futures Account"
- Choose the currency to transfer (usually USDT)
- Enter the amount and confirm
Transfers are instant and fee-free.
Choose a Contract Type
Binance offers two main contract types:
- USDT-Margined Perpetual Contracts (Linear): Uses USDT as both margin and settlement currency; the most commonly used type
- Coin-Margined Contracts (Inverse): Uses the corresponding cryptocurrency as margin, e.g., using BTC as margin to trade BTC contracts
Beginners are recommended to start with USDT-margined perpetual contracts, as profit and loss calculations are more intuitive.
Set Leverage
Before your first trade, you need to set the leverage multiplier:
- On the futures trading page, tap the leverage display
- Drag the slider or enter a number to select leverage
- Beginners are strongly advised to start with low leverage, such as 2x to 5x
Download the Binance App to conveniently manage your futures account on mobile.
Choose a Margin Mode
- Cross Margin: All positions share the same margin pool; losses on one position affect others
- Isolated Margin: Each position uses its own margin independently; liquidation of one position does not affect others
Beginners are recommended to use isolated margin for more controllable risk.
Making Your First Futures Trade
After opening your account and transferring funds, you can try your first futures trade:
- Select a trading pair (e.g., BTC/USDT Perpetual)
- Confirm leverage (recommended 2x to 3x)
- Confirm margin mode (recommended Isolated)
- Choose direction: Long (bullish) or Short (bearish)
- Select order type (limit order recommended)
- Enter price and quantity
- Set stop-loss and take-profit
- Confirm the order
Tips for Your First Trade
- Use a very small amount (10 to 20 USDT) to practice
- Use low leverage (2x to 3x)
- Always set a stop-loss
- Don't chase high profits; focus on getting familiar with the process first
Key Futures Trading Concepts
Margin
The deposit required to open a position. Higher leverage means less margin is needed, but the risk is also greater.
Liquidation Price
When your losses approach your margin amount, the system will force-close your position. The liquidation price depends on your leverage and position size.
Funding Rate
Perpetual contracts charge a funding rate every 8 hours. Depending on market conditions, you may need to pay or receive funding when holding a long or short position.
Mark Price
Binance uses the mark price rather than the last traded price to calculate liquidation. This prevents unfair liquidations caused by short-term price manipulation.
Sign up on Binance to open a futures account and start learning.
FAQ
Is there a fee to open a futures account?
No. Opening a futures account is free. Fees are only charged when you make actual trades.
What if I fail the futures quiz?
You can retake the quiz. It's recommended to study the basics of futures trading before trying again.
Can I close my futures account?
Yes. If you decide to stop trading futures, you can transfer all funds back to your spot account.
Can I withdraw USDT directly from my futures account?
No. You need to transfer it to your spot account first, then withdraw from there. Download the Binance App for convenient fund transfers between accounts.
Safety Tips
- Futures trading carries extremely high risk; beginners must start with small amounts
- Always set stop-losses; never gamble on market direction
- Never trade with more money than you can afford to lose
- Avoid trading futures when you are emotionally agitated
- Learn to manage leverage; lower leverage trading is safer