View source for Binance.com/en/futures/ref/Z56RU0SP Register now

== Binance Futures Trading: A Beginner's Guide ==

This guide will walk you through the basics of trading cryptocurrency *futures* on Binance.com. It's designed for absolute beginners with no prior experience.  Futures trading is more complex than simply buying and holding [[Cryptocurrency]], so read carefully and understand the risks before you start.  Please note that futures trading involves significant risk of loss. Only trade with funds you can afford to lose.

== What are Cryptocurrency Futures? ==

Imagine you want to buy a loaf of bread next week, but you're worried the price will go up. A *futures contract* lets you agree *today* on a price to buy that bread next week.  

Cryptocurrency futures are similar. They're agreements to buy or sell a specific cryptocurrency at a predetermined price on a future date.  You don’t actually own the cryptocurrency at the time of the contract. You are speculating on its future price.

*   **Long Position:** Betting the price will *increase*. If you think Bitcoin will be worth more next week, you’ll open a “long” position.
*   **Short Position:** Betting the price will *decrease*. If you think Ethereum will be worth less next week, you’ll open a “short” position.

== Why Trade Futures? ==

*   **Leverage:** This is the biggest draw (and the biggest risk!). Leverage allows you to control a large position with a smaller amount of capital. For example, 10x leverage means you can control $100 worth of Bitcoin with only $10. While this can amplify profits, it also amplifies losses.
*   **Profit from Falling Prices:** Unlike simply holding crypto, futures allow you to profit when prices go down by opening a short position.
*   **Hedging:**  Experienced traders can use futures to protect their existing crypto holdings from price drops.

== Getting Started on Binance Futures ==

1.  **Create a Binance Account:** If you don’t already have one, sign up at [https://www.binance.com/en/futures/ref/Z56RU0SP Register now].  Complete the necessary verification steps (KYC - Know Your Customer).  Security is vital; enable [[Two-Factor Authentication|2FA]].
2.  **Deposit Funds:** You’ll need to deposit cryptocurrency into your Binance account to trade futures.  Binance supports various deposit methods.
3.  **Navigate to Binance Futures:** Once logged in, go to the "Derivatives" section and select "Futures".  You'll likely need to agree to a risk disclosure.
4.  **Choose a Contract:** Binance offers a wide range of futures contracts.  Popular choices include Bitcoin (BTC) and Ethereum (ETH).  Contracts are usually either Perpetual (no expiry date) or Delivery (have an expiry date). Perpetual contracts are more common for beginners.
5.  **Understand the Interface:**  The Binance Futures interface can seem overwhelming at first. Key elements include:
    *   **Price Chart:** Shows the price movement of the cryptocurrency. [[Technical Analysis]] is key here.
    *   **Order Book:** Displays buy and sell orders.
    *   **Order Types:**  Market, Limit, Stop-Limit – we'll cover these later.
    *   **Leverage Selection:** Choose your desired leverage (be careful!).
    *   **Position Size:** The amount of the contract you want to buy or sell.

== Basic Order Types ==

*   **Market Order:** Executes immediately at the best available price.  Good for quick entry or exit, but you may not get the exact price you want.
*   **Limit Order:**  Allows you to set a specific price at which you want to buy or sell.  Your order will only be filled if the market reaches that price.
*   **Stop-Limit Order:** Combines a stop price and a limit price.  Useful for managing risk.

== Understanding Leverage ==

Let's say you want to trade Bitcoin with 10x leverage. Bitcoin is currently trading at $30,000.

*   **Without Leverage:** To buy 1 Bitcoin, you’d need $30,000.
*   **With 10x Leverage:** You only need $3,000 ($30,000 / 10).  You now control $30,000 worth of Bitcoin.

If Bitcoin’s price increases to $31,000, your profit is:

*   **Without Leverage:** $1,000 profit ($31,000 - $30,000)
*   **With 10x Leverage:** $10,000 profit ($1,000 x 10)

However, if Bitcoin’s price *decreases* to $29,000, your loss is:

*   **Without Leverage:** $1,000 loss ($30,000 - $29,000)
*   **With 10x Leverage:** $10,000 loss ($1,000 x 10)

This illustrates the power and danger of leverage.

== Risk Management is Crucial ==

*   **Stop-Loss Orders:** *Always* use stop-loss orders to limit your potential losses. A stop-loss order automatically closes your position when the price reaches a certain level.
*   **Position Sizing:** Don’t risk more than 1-2% of your trading capital on any single trade.
*   **Start Small:** Begin with low leverage and small position sizes until you gain experience.
*   **Understand Margin:** [[Margin]] is the collateral required to maintain your position. If your losses exceed your margin, you'll be *liquidated* (your position will be automatically closed).

== Binance vs. Other Exchanges ==

Here's a quick comparison of Binance Futures with some alternatives:

{| class="wikitable"
! Exchange
! Fees (Maker/Taker)
! Leverage
! Features
|-
| Binance Futures
| 0.02%/0.04%
| Up to 125x
| Wide range of contracts, advanced trading tools
|-
| Bybit
| 0.075%/0.075% ([https://partner.bybit.com/b/16906 Start trading])
| Up to 100x
| Popular for perpetual contracts
|-
| BingX
| 0.02%/0.06% ([https://bingx.com/invite/S1OAPL Join BingX])
| Up to 100x
| Copy Trading features
|-
| BitMEX
| 0.042%/0.042% ([https://www.bitmex.com/app/register/s96Gq- BitMEX])
| Up to 100x
| One of the earliest Bitcoin futures exchanges
|}

== Further Learning ==

*   [[Candlestick Patterns]]: Understanding price action.
*   [[Moving Averages]]: Identifying trends.
*   [[Relative Strength Index (RSI)]]: Measuring momentum.
*   [[Trading Volume]]: Assessing market strength.
*   [[Fibonacci Retracements]]: Identifying potential support and resistance levels.
*   [[Bollinger Bands]]: Measuring volatility.
*   [[Ichimoku Cloud]]: Comprehensive trend analysis.
*   [[Support and Resistance]]: Key price levels.
*   [[Breakout Trading]]: Capitalizing on price breakouts.
*   [[Scalping]]: Short-term trading strategy.
*   [[Day Trading]]: Closing positions within the same day.
*   [[Swing Trading]]: Holding positions for several days or weeks.
*   [[Position Trading]]: Long-term investment strategy.
*   [[Order Flow Analysis]]: Understanding market participants.

== Disclaimer ==

Trading cryptocurrency futures is inherently risky. This guide is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions.

[[Category:Crypto Basics]]

== Recommended Crypto Exchanges ==
{| class="wikitable"
! Exchange
! Features
! Sign Up
|-
| Binance
| Largest exchange, 500+ coins
| [https://accounts.binance.com/register?ref=V2WQ1AZO Sign Up - Register Now - CashBack 10% SPOT and Futures ]
|-
| BingX Futures
| Copy trading
| [https://bingx.com/invite/S1OAPL Join BingX - A lot of bonuses for registration on this exchange]
|}

== Start Trading Now ==
* [https://accounts.binance.com/register?ref=V2WQ1AZO Register on Binance] (Recommended for beginners)
* [https://partner.bybit.com/bg/7LQJVN Try Bybit] (For futures trading)

=== Learn More ===
Join our Telegram community: [https://t.me/Crypto_futurestrading @Crypto_futurestrading]

⚠️ *Disclaimer: Cryptocurrency trading involves risk. Only invest what you can afford to lose.* ⚠️