1. What are Futures contracts?
Futures contracts are derivative instruments that allow you to enter long or short positions on the price of an underlying asset—such as BNB—with leverage of up to 125x, enabling you to magnify your profits (and at the same time your losses) compared to spot trading.
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2. Steps to open a contract
1. Log in and activate Futures
Log in to your Binance account, then select Futures from the top menus.
Complete the activation process (read the agreement and activate 2FA) to ensure the security of your account.
2. Transfer margin to Futures wallet
Go to Wallet → Futures Wallet
Click Transfer and transfer your BNB or USDT balance from your spot wallet to your contract wallet (Cross or Isolated).
3. Choose the type of contract
Use USDT-M Futures for USD-settled contracts (convenient for beginners).
Note that the maximum position is affected by leverage: when choosing 20x on BNB/USDT, the maximum position is 250,000 USDT.
4. Leverage adjustment
Before entering the contract size, choose the leverage level from the leverage bar (1x up to 125x).
For beginners, it is recommended to use low leverage (e.g. 3–5x) to reduce risks.
5. Determine the contract size and issue the order.
Enter the amount of BNB you want to trade (e.g. 10 BNB).
Choose Market for spot trades, or Limit to set a specific price.
Press Buy/Long for an uptrend or Sell/Short for a downtrend.
6. Confirm and monitor the center
After opening, the position appears under Positions, where you can adjust the Stop-Loss and Take-Profit.
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3. Explain risks and control mechanisms.
Liquidation risk:
Using high leverage increases the likelihood of quick liquidation if the price moves against you.
Stop Loss and Take Profit:
Set Stop-Loss and Take-Profit levels immediately after opening a position to limit losses and secure profits.
Capital management:
Do not risk more than 1–2% of your total portfolio on each trade.
Funding Rate Review:
The rate you pay or receive every 8 hours; choose a convenient timing based on that.
Update borders and centers:
Monitor your Position Limit regularly to avoid exceeding the allowed limit.
Have you tried opening a Futures contract before? What advice do you have for beginners? Share your experience with us in the comments!