Futures trading in crypto is a powerful way to profit from both rising and falling markets. But without proper knowledge, beginners can face heavy losses or even liquidation. This guide will walk you through the essentials of using Binance Futures safely and effectively — from leverage to take profit and stop loss strategies.
⚙️ 1. How to Set Leverage
Go to Binance Futures and select a pair (e.g., BTC/USDT).
Click on the leverage multiplier.
Choose between 1x to 125x.
👉 Tip for beginners: Keep leverage under 5x to reduce risk.
🚀 2. How to Open a Position
Choose direction:
Long (Buy): You expect the price to go up.
Short (Sell): You expect the price to drop.
Choose order type:
Limit Order: You set the price manually.
Market Order: Buy/sell immediately at current market price.
Enter your amount and click Buy/Long or Sell/Short.
✅ Pro Tip: Start small and use market orders to get familiar with the process.
➕ 3. How to Add to a Position
Adding to a position means increasing your exposure in the same direction.
Example: If you’re long 0.5 BTC and price rises, you might add another 0.5 BTC to maximize profits.
Be aware:
Your average entry price will change.
Your liquidation price may move closer.
➖ 4. How to Reduce a Position
Reducing means partially closing your position to take profit or cut risk.
Steps:
Go to the "Positions" section.
Click Close Position.
Choose limit or market, enter size, confirm.
💡 Reminder: This only reduces your position — you’re still in the trade unless fully closed.
🛑 5. How to Set Take-Profit and Stop-Loss
Risk management is everything!
Steps:
After opening a position, click on TP/SL under your active trade.
Set:
Stop-Loss Price – the level to exit if the trade goes against you.
Take-Profit Price – your target to lock in gains.
Confirm.
📌 Suggestions:
Stop-loss: Max 3–5% of your account per trade.
Take-profit: Use key support/resistance levels or trailing strategies.
💥 6. How to Avoid Liquidation
Liquidation happens when your margin falls below required levels — you lose the entire position.
Tips to avoid it:
Never go all-in. Keep each position to 10–20% of your funds.
Use reasonable leverage.
Always set stop-losses.
Monitor your margin ratio regularly.
Maintain extra margin balance as buffer.
✅ Final Thoughts
Binance Futures can multiply your profits — but without discipline, it can wipe you out just as fast.
By mastering proper leverage control, knowing how to open and manage positions, and setting clear stop-losses and take-profits, you’ll build a foundation for long-term success in crypto trading.