---
title: 'Binance Futures Trading For Beginners - How to Trade Futures on Exchange'
source: 'https://youtube.com/watch?v=oUjyaf3-CQg'
video_id: 'oUjyaf3-CQg'
date: 2026-09-21
duration_sec: 383
channel: 'Binances Club'
---

# Binance Futures Trading For Beginners - How to Trade Futures on Exchange

> Source: [Binance Futures Trading For Beginners - How to Trade Futures on Exchange](https://youtube.com/watch?v=oUjyaf3-CQg)

## Summary

This video is a beginner-friendly guide to trading perpetual futures on Binance. It covers the basics of leverage, margin modes, and how to place orders, with a strong emphasis on risk management.

### Key Points

- **What is a Perpetual Future?** [00:13] — A perpetual future tracks the price of an underlying asset but never expires. You can go long or short, and leverage ranges from 1x to the maximum allowed by the pair.
- **Margin Modes: Cross vs Isolated** [01:13] — Cross margin uses all your USDT to back every open trade, while isolated margin limits risk to that single position. Beginners should start with isolated.
- **Leverage Example** [01:44] — With $100 and 20x leverage, you can trade with $2,000. A 5% price increase doubles your $100, but a 5% drop loses it all.
- **Liquidation Risk** [02:16] — The exchange liquidates your position before the full 5% loss. Use the built-in liquidation calculator to see your liquidation price.
- **Setting Stop Losses** [02:32] — Higher leverage moves the liquidation price closer. Set your stop loss slightly above the liquidation price to avoid losing your entire deposit.
- **Beginner Trading Strategy** [03:20] — Start small or use demo trading. Recommended maximum leverage is 3x. Use isolated margin and set a stop loss a few percent below entry.
- **Conditional Orders** [03:45] — Use TP/SL buttons to add take profit and stop loss later. These execute as conditional orders even if you're offline.
- **Funding Rate** [04:10] — Funding rate is paid every 8 hours for most pairs. Keep this small fee in mind for multi-day trades.
- **Fee Structure** [04:24] — Fees are multiplied by leverage and charged twice (open and close). Limit orders have lower maker fees, so use them when possible.
- **High Leverage Example** [05:01] — With $100 and 125x leverage, if Bitcoin rises from $100,000 to $125,000, you make $3,125 profit. But if it drops to $99,200, you lose your $100.
- **Risk Management Tools** [05:28] — Set a stop loss to prevent losing all your money (e.g., lose $20 instead of $100) and a take profit to close automatically at a good price.

## Transcript

Hey everyone, welcome back. Today we're diving into Binance Features, one of the largest and most trusted platforms for leveraged crypto trading.
Okay, a quick refresher. A perpetual future tracks the price of an underlying asset but never expires. You can go long if you expect the price to rise, or short if you think it will drop.
Since you're trading contracts rather than the coins themselves, you can set your leverage anywhere from one times up to the maximum your trading pair allows. On Binance's USDT Margined Contracts, or USDC, profits and losses settle in USDT or USDC. This stable cryptocurrency
is equal to the real US dollar. Alright, let's jump straight into the futures interface. I guess you already know how to create an account and add some funds. And if you don't, No worries at all. You can find every guide you need right here on my channel.
Okay, head to Futures from the main menu. The interface is intuitive. Market selector and chart in the center, live order book and depth chart on the right, and your positions and order history below. The order panel lets you choose market or limit orders
with an easy quantity box. Right above you will find the margin mode. Cross uses all your USDT to back every open trade, while isolated limits risk to that single position.
If you're a beginner, always start with isolated. Next to it, you'll find the leverage control. Drag the slider or type your desired value from a cautious one times to the maximum supported by your pair let talk a bit about leverage more for example if you have 100 and use 20 times leverage
you'll be able to trade with two thousand dollars so basically you can open a long position worth two thousand dollars as if you just bought bitcoin for that amount now if the price goes up by just 5%, your profit will double your initial $100. That's a 100% gain if you close the trade at the
right time. But of course, it's not all sunshine and profits. The risks go up just as fast. If the price drops 5%, you'll lose your entire $100. And in reality, it happens even sooner. Because the
exchange liquidates your position before it reaches that full 5% loss. So whenever you're using higher leverage, always open the built-in liquidation calculator, like the one you see on the screen, and type in your trade parameters. You'll instantly see your liquidation price.
The higher the leverage, the closer that liquidation point gets. Watch this. As I lower the leverage, the liquidation price moves further away, giving much more room for the trade to breathe. It's crucial to know where that level is so you can set your stop loss slightly above it.
That way, even if the trade goes against you, you won't lose your entire deposit. Because once you get liquidated, your balance is gone completely. Guys, I know it might sound a bit complicated, but don't worry.
Once you start practicing, everything becomes much clearer. The best way to learn is to start small with a tiny amount you comfortable with Or even better use the demo trading mode Say you bullish on Ethereum Select the ETH pair choose limit enter a price below spot and set your order size Maybe
$100. Check your liquidation price. If it's too close, reduce your leverage and make sure you're using isolated margin. I do not recommend using leverage greater than three times. Okay, add a stop
loss a few percent below your entry point, but above the liquidation price. Click buy slash long, confirm, and your order will appear under open orders. Once filled, it moves to positions,
showing real-time PNL. If you forgot to set stop loss or take profit, just click the TP slash SL button in the positions tab and add them later. Finance keeps these as conditional orders,
so they'll execute even if you're offline. You'll also see the funding rate countdown above the order book. If longs are dominant, they'll pay shorts at the next interval, or vice versa.
Still every eight hours for most pairs. Keep this small fee in mind for multi-day trades. Closing your position is just as simple. Use market to close instantly, or limit close to aim for a better price
and possibly pay lower maker fees. And if you didn't know, the fee is multiplied by the leverage size. Exchanges bill that charge twice. Once when you open, once when you close.
So over time, it eats a nasty hole in your P&L. With a lower maker rate every limit order you drop into the book on Binance costs less So be sure to place limit orders if possible If you still do not understand what futures trading is and how to make money here let look at an example like this For example Bitcoin costs and you have only
And for example, you take X125 leverage. So you buy Bitcoins for $12,500. Then Bitcoin rose to $125,000.
You close the deal. And you get $3,125 in profit. That's really cool. But there is one thing. If this price drops to $99,200, you will lose your $100.
So it's very risky to trade here. You can minimize the risks by setting stop losses and take profits. You set a stop loss value to prevent the loss of all your money, like if the price drops to $99,850.
You will lose only $20 instead of $100, and you will be able to continue trading. Take profit is the price when the order closes automatically. You need this so you don't miss out on a good closing price.
And so guys, don't forget to use the link from the description to activate the promo offer, and good luck. And before we wrap up, if you're looking for another exchange to explore, check out Weeks.
Weeks offers a huge selection of trading pairs, strong liquidity, and no KYC access for basic use. New users can also unlock rewards of up to 10,000 USDT.
You can find my Weeks link below if you want to check it out.