Is Futures Trading Halal or Haram?
47sThis controversial religious question sparks debate and curiosity, driving high engagement and shares.
▶ Play ClipThis video provides a detailed walkthrough of Binance futures trading, covering wallet setup, leverage, order types, and risk management. The instructor explains the mechanics of going long or short, setting take-profit and stop-loss orders, and understanding key metrics like entry price, market price, and liquidation price.
The video is part of a Binance course series focusing on futures trading. The instructor clarifies that he is not providing religious guidance on whether futures trading is halal or haram; viewers should research that themselves.
To start futures trading, you need to transfer funds from your Spot wallet to your Futures wallet. The instructor demonstrates transferring 10 USDT from a spot balance of 26 USDT.
After transferring funds, navigate to the Futures section. Ensure the trading pair is USDT-M (dollar-based) and select a coin like ADA/USDT.
The instructor warns beginners not to rely on color (green/red) alone to determine profit/loss. Instead, focus on the percentage change. A green candle can still indicate a loss if the percentage is negative.
Two margin modes: Isolated (recommended for beginners) uses only the allocated margin, while Cross uses the entire wallet balance as collateral. The instructor advises using Isolated to limit losses.
Leverage multiplies your position size. For example, with 3x leverage and a $9 position, only $3 is your own money; the rest is borrowed from Binance. Beginners should keep leverage low (1-3x).
Use a market order to enter a trade. Enter the dollar amount you want to trade. The instructor enters $9 for ADA/USDT with 3x leverage, meaning his actual margin is $3.
Buy Long is used when you expect the price to rise; Sell Short when you expect the price to fall. The instructor chooses Buy Long because he believes ADA will increase.
After placing a trade, the position shows entry price, market price, liquidation price, margin, and PnL. The liquidation price is critical: if the market price hits it, your margin is lost.
TP/SL orders automatically close the position at predefined prices. The instructor sets a take profit at 0.90 USDT (profit $2.11) and a stop loss at 0.70 USDT (loss $0.28), ensuring a favorable risk/reward ratio.
Futures trading allows profiting from both rising and falling markets, but requires careful risk management. Using isolated margin, low leverage, and TP/SL orders can help beginners limit losses and automate exits.
"The title promises a detailed master class on Binance futures, and the video delivers a thorough, step-by-step tutorial."
What is the difference between Isolated and Cross margin modes?
Isolated margin uses only the allocated margin for a position, while Cross margin uses the entire wallet balance as collateral. Isolated is recommended for beginners to limit losses.
05:55
How does leverage work in futures trading?
Leverage multiplies your position size. For example, with 3x leverage and a $9 position, only $3 is your own money; the rest is borrowed from the exchange.
06:52
What is the liquidation price?
The liquidation price is the market price at which your position is automatically closed and your margin is lost. It is determined by your leverage and margin mode.
13:20
When should you use Buy Long vs Sell Short?
Buy Long is used when you expect the price to rise; Sell Short is used when you expect the price to fall.
09:28
What are Take Profit and Stop Loss orders?
Take Profit (TP) automatically closes a position at a specified profit level. Stop Loss (SL) automatically closes a position at a specified loss level to limit losses.
17:13
Isolated vs Cross Margin
Crucial risk management distinction for beginners; using isolated prevents total wallet loss.
05:55Leverage Explanation
Clear breakdown of how leverage multiplies position size and the importance of low leverage for new traders.
06:52Liquidation Price Warning
Highlights the most critical risk in futures trading: losing entire margin if price hits liquidation level.
13:20TP/SL Automation
Demonstrates a practical risk management strategy that automatically locks profits and limits losses.
17:13[00:02] So here we are again with the next class from Binance. In today's class we will talk about futures trading. I have already made a good video on future trading, on which I have already made a good video on future trading, on which
[00:18] liked it. So again I want to make a detailed video here so that if you have any questions then they get cleared. Basically remember one thing. Some people say that future trading is haram, some say it is halal. I have
[00:33] no idea about this. So if you want to do this, you should investigate it yourself. I will just provide you the knowledge about how this thing works. The rest is up to you to decide whether to do it or not. The responsibility is totally yours and if you want to do it then you can do it, if you don't want to do it then do
[00:47] n't do it. ok sir. So first of all, those who are watching my course regularly know the details that till now I have told you all the details of spot trading, how we do spot trading. Right now what we are going to talk about here is the future.
[01:02] what we are going to talk about here is the future. So for that, see here, these wallets which are made, this is our future wallet. I click on this here. So if you look at the Future Wallet,
[01:14] I have zero balance right now. Ok? So first of all we will have to bring some balance from spot into future. Then we will be able to use it. So here I click on spot trading up top. The total balance in this is $151.
[01:28] But it's not all dollars. In these you can see that many coins have been bought. Ok? So the only dollars in this are USDT and these are 26. So that's enough. We will use only 101 of these. We will
[01:41] not use more than that. So I will transfer almost 10 USDT from this. This is the transfer button. By clicking on this you can easily transfer your amount from one wallet to another. I have also prepared its details.
[01:57] You have seen those who regularly watch the course. ok sir. So now we have to take this from the spot to the balance future. So what do we do here? Just click on transfer. Ok? Ok. So click on transfer and what do you have to do here
[02:10] ? Now here you have to select the spot above the from. Instead of two funding, we will select future here. See, funding is used when you want to sell or buy directly in the market. Ok? So now we
[02:23] will click on funding here and from here we will us. And here the coin which is written below BNB, select it and here
[02:36] above you select USDT in the search bar. Look at this, you have to click on USDT and here below the total is telling me that there are 12 available and out of that I have started using only about 10. I am starting to transfer. So
[02:51] I will transfer $10. Now see, it will come out from the spot here. Will go to future wallet. What will go? USDT means dollar will go. How much will it cost? 10 will go. Ok? Now here you just have to click on confirm. So I clicked on it. Now he has been
[03:05] transferred. Make it ok. Now let us go to our future wallet and see this. So this is our future wallet, you have to click on it here. So as soon as you click on this, you will see that your $10 has arrived here. Now
[03:20] arrived here. Now scene as I had told you in detail earlier. Ok? As of now, we are inside the spot. Ok? So look here we are inside sorry asset here.
[03:36] Here you click on future. Or click on Future here below or click on Direct Trade here above. That means if you are present in the wallet then click on direct trade from wallet. Otherwise this is a future option below.
[03:48] You can click here. So I click on future. So look, we have entered the future. And here above you have to remember that this USDT M should come here. The coin seller should not come. Ok? So that means
[04:01] we have to use dollars. Look, there are $10 in the wallet. He is doing a show here. in the wallet. He is doing a show here. Ok? So by clicking on this we can select any coin in
[04:15] which we want to trade. So sir, I clicked here and in the search you can search any coin above. I search for a coin here called ADA. You just have to pair it with USDT. So I
[04:30] selected View ADA and up comes USDT. USDC is coming down, you should not take it. So we will select USDT here. Ok? So I have selected my coin ADA. Ok? Now
[04:44] here we have this coin ADA and whichever coin we select, its price is showing in green below. Right now it is showing growth. Sometimes it decreases , sometimes it may increase. Ok? But remember, let me tell you one
[04:56] important point here. Currently it is up by 1.33%. Ok? But its color is green. Green color is mostly the color of growth. But this is not necessary brother, those who are beginners do not understand. You should focus on the percentage and not on the color.
[05:12] Some people think that when this raid happens then it will incur loss. It's not like that. You should look at its percentage. Right now it is 1.35. Means it is increasing. Even Right now it is 1.35. Means it is increasing. Even if it becomes 1.30, 1.32,
[05:26] it is still going into loss. That means it is decreasing. The color will remain green but it is decreasing. So you have to note the percentage. It is rising or falling. You do not have to note the color, if it is green then there is profit. If it is red then it is a loss. It's not like that.
[05:40] Ok? Now the same scene is here also. Here is its current price. This coin which we have bought, its current price in the market is 0 7225. Ok? I have $10. Well, in futures trading,
[05:55] you get an important option here and above. Here I will tell you about it by highlighting it. This is where the cross is written. Ok? And cross means I select this. So remember there are two options in this. One is isolated, one
[06:10] is cross. You have to use isolated. Especially those who are new people. Because if you use it isolated then only the amount you are using will be used. The extra spare amount lying in your wallet etc. will not be used. But if you
[06:25] use cross instead of isolated here, then what does it do? If you lose the coin then this amount of yours gets lost. He also starts using the previous amount and starts picking it up from the spot, your amount also starts getting used.
[06:38] So the new guys should use the isolated one. Big traders use the cross. He is an expert in this. But you cannot do this. Ok? So let me do the isolated here. After that, look here, you
[06:52] After that, look here, you get a 5x further thing here. 5x means five times. This is basically leverage. What happens is that look, I just transferred $10 and I'm not going to trade $10. Out of this I just want to
[07:05] I just want to $34 so that I do not suffer much loss. Ok? If some people invest $50 as soon as they come, then obviously they will incur loss. Those who don't even understand. Now I want to make a
[07:19] trade of only $10. But let me use three of mine. So the rest of the leverage we take from Binance, you have to put it here. Ok? If I click on 5x, here you can put 3x, 2x, anything. Now what is its example? For example,
[07:33] if you put 3x here, look here, I delete it. I do it 3x. look here, I delete it. I do it 3x. Now this means that if I trade $1 for $9, not $9. So if you divide $9 by three, the
[07:47] answer will be three. This means I will only have three. The remaining $6 will be Binance's. Ok ? Similarly, what happens if I trade for $15 ? There will be three times that.
[07:59] That means these three $5s will be mine. Five three times is 15. The rest will belong to multiplied. So you new guys can keep it up to 1, 2, 3%. It is better not to keep more than this. So let me confirm this by multiplying it 3x. Ok? So here
[08:14] you understood two settings. One is to use the isolate. Secondly, you should use less than 3X or use 3X which is new. Below is your amount, $10, and the limit written here, you have to click on it and do the market from here.
[08:29] Ok? This is the market below. Here you just have to select the market. Ok? Well, the amount comes down. Here you will enter the dollar amount of the trade you want to take and we are talking about ADA. It is currently increasing.
[08:43] Now let us look at one more point here. In futures trading, you can take profit from rising rates as well as falling rates. That means even if the rate of ADA increases, I can still make profit. And even if the rate is low, I can still make a
[08:59] profit. But now the risk here is that I do not have a clear idea whether the rate will increase or decrease. This is the real issue. Ok? If you see, it is increasing now, so I think it will increase but now it has also decreased. Look, it has
[09:14] come down from 1.57 to 1.4. That means this rate has decreased. You can see this, you will get an idea from the percentage. can see this, you will get an idea from the percentage. Ok? So right now it was 1.57 but it came down to 1.4. So it means it has reduced a bit. But now two options are available here. One
[09:28] buy long and one sell short. Well when do you do Bye Long? Look, remember, we always buy long when we have it in our mind that the rate of this coin will
[09:40] increase. Okay, right? That is, if you have this in your mind that the rate of the coin will increase, then you will click on Buy Long. If you have it in your mind that the If you have it in your mind that the market rate of this coin will decrease then you will
[09:54] click on Sell Short. Ok? So now we have started using buy long because the rate is both decreasing and increasing. Ok? So buy long means that I feel that the rate will increase a little, hence I want to buy long it.
[10:07] Ok? Now look here, I will click on Buy Long. First we will will click on Buy Long. First we will put the amount. What do I do inside amount here ? As soon as I put the amount here nine. Ok? So by making nine putts,
[10:20] you'll see a few things below. This is one, yes nine, I put, so the This is one, yes nine, I put, so the cost here is $2.90 USDT, which means it will take cost here is $2.90 USDT, which means it will take 2.90 from what I have. Meaning there are
[10:33] some fees of $3 for the options. That means whatever I have will cost this much. Ok? Who will own the remaining six? of Binance. Because I have taken 3x leverage. Ok? So here, the value that I am putting, you or whoever is putting the value,
[10:47] divide it on the leverage. For example, if I divide nine by three, then three is divided by three, three times nine, which means I will have $3. fixed bugs? Similarly, if I put here for example 10, I am just giving an example.
[11:01] Ok? So now I have put 10 here. How much are my dollars worth now put 10 here. How much are my dollars worth now ? Ok? Now look at 10, if you divide 10 by three, what is the result? Now he will come in a few points.
[11:14] Let's do it this way then. Here instead of 10 we take an example, I have total available 10. For example, you did 20 here. Now if you divide 20 into three, then whatever dollars you make will be yours. Ok? That means whatever value
[11:29] comes will be yours. I'm nine- putting here right now. So we divide nine by our leverage. That putting here right now. So we divide nine by our leverage. That means we divide this nine by this three. The value that comes in is our own dollars. I will explain this thing further to
[11:41] you. Now I click on Buy Long. ? I am telling you again because I feel that the rate will increase, hence I am clicking on Buy Long. When I did buy long, it is saying that your order will fail should the
[11:55] market price deviate from the market price by 5%. Ok? He says that your order will fail because 5 people do it with this. Now if you want to do 'Don't Display' here then do it otherwise we will confirm it. Ok? Now see, he says that
[12:10] success has been achieved here. Now let's move up a little to see this. See, as soon as this order is placed, you see a position here. This position one is written. Here you get a position order key. This is ADO. ADA is pegged to USDT.
[12:26] I have taken its isolated 3x. Now it is going into the red. This means it is going down right now. Because if the rate increases then I will have to make profit because I have clicked on buy long. Ok ? Now below are its important settings. What
[12:38] you have to understand carefully are all these settings. ok sir? How should we look at them? This first thing is the entry price. Entry price means the price market at which you have entered the trade. That
[12:52] means when I took the entry the price was 0.72340 something and this is the market price. That means its current price is 0.72316, which means it has decreased. Ok? Sometimes it increases and sometimes it decreases. That means I have
[13:07] entered at 40. So here is my entry price and this is the market price. Whatever is there now has reduced a bit. Ok? Good. After that the next thing that comes here is the liquidity price. This is also a very important thing brother. See if
[13:20] your trade is in place. You have entered at 0 points and this is the market entered at 0 points and this is the market price. But if this market price decreases and comes down to 0.4. Ok? Right now it is 0.72 something. But
[13:36] if it decreases further, you have placed a trade. As soon as it reaches this point 0.48505, your trade will automatically close and all your dollars will be gone. Ok? That means this is a very dangerous situation. The
[13:51] liquidity price is attached to your market price. If the market price reaches this price, it is telling you that then your entire amount will be lost. What is your total amount? You only spent $3. They will be finished. Ok?
[14:05] And Binance will also withdraw its money. So you will lose $3. Binance will have none. Ok? But let's look at a few things up here now. Okay, let's move it here. Look at this, sir. Here is your margin. See, this is the value your
[14:21] dollars are being used for. There were total 10, so you are using 2.88. Out of this, we had placed a trade of $9, so this is the size where it is written, total 867, which means $9 is for some fees, in this, this
[14:35] means that this is the total size of the trade, that is, it is a trade of $9, out of which we are using only we are using only 288, so this means that when this market price which I have told you, while decreasing, reaches this point, reaches the
[14:48] liquidity point, then these 288 dollars of yours will be finished. 288 dollars of yours will be finished. Ok? Meaning you lost $3, understand it in simple words. Ok? After that you understood these five things. Now here
[15:03] is the G margin ratio. This is the same thing. This is being told in ratio percentage. Here the margin is 2.88 and this is shown in percentage. Check out the real thing up here, this one. Check out the real thing up here, this one. This is your profit or loss percentage
[15:18] and this is your profit or PNL which is called profit and loss. The value that comes here will be in dollar terms. It will tell you that you have suffered a loss of so many dollars or have made a profit of so many dollars. The value that will come here will also
[15:33] be of loss or profit but it is being told in percentage. Right now, only loss is showing here. Ok? ROI is written above. ROI means Return on Investment. ok sir? So here it will show you profit loss in percentage.
[15:47] Here it will show profit loss in dollar terms. So let me tell you these things once again. As I told you, understand it in detail. Entry price is the price at which we entered the trade in the market. Market Price is the
[16:02] current market price of this coin. fixed bugs? Liquidity price is the price that if the market because we took buy long. We buy long when the rate is going to rise. But if it is less then we will suffer loss.
[16:15] But if the work gets so less that it reaches here, then automatically this margin of ours which is 2.88 dollars means $3 will be deducted, you will be finished and you will incur a loss and Binance will also withdraw its balance of $6, your trade will be closed,
[16:31] simple as I say and this total size means how many dollars' worth of your trade is placed, it is 8 something, means nine, out of which some amount is for fees, means nine, out of which some amount is for fees, so out of nine, 2.88 is yours,
[16:45] means $3 is yours, so you will suffer a loss of $3 only, brother, it will not be much because you had selected isolated. Okay, right? So the price is going down right now. See, it is showing us loss in percentage also. Here, a loss of $.01 has already occurred.
[16:59] Ok? Now there is another important thing which we must do. See, here TP and SL are same. Well, close is also written here. I keep getting comments that we can close it.
[17:13] How to do it? See, if you want to close it here whenever you want, just click on close and it will be done. But if you use TP and SL here, it is better. TP means Take Profit SL means Stop Loss. So let me click here.
[17:27] Understand its setting. When you click on it here, you will not get this thing here. Position TPSL. You have to click on it here. Correct? Now after coming here you will find two things below. One take profit one stop loss. Now
[17:43] we want to see now note one thing here. This is the entry price. When we took the entry, the price was 0.72340 and the current market price is 0.72260, which means it is big. Ok? It is a little big. So
[17:58] this is a good thing. Now that we know we have taken a buy long. Buying long means that when your value increases and the market of the coin increases, you will make a profit. So we will enter a trigger price here. That brother, if the price
[18:12] goes up to this level then give us whatever profit you make and close our trade. Like now here you have to keep in mind your entry price as well as the market price. Ok? Entry price was Rs 0.72340. Now if I put
[18:27] 0.73 here, see what will happen here? If I put 0.73 here, what will happen here? Basically now I'm telling Binance. Brother, when this market price, this market price, goes
[18:41] goes above 0.73, then what will Binance do, see below, when the market price goes to 0.373, it will trigger a take profit market order to close the position, then what will happen,
[18:54] your trade will automatically close and how much profit will you get, 07, that's right, we are placing a stop for take profit, stop here, there is no need to go beyond this. That means if the market price increases from 0.72 to 0.73 then
[19:11] our trade will automatically close. How much profit will it give? 0.07 is very low. I am doing this just to explain it to you. But if we increase the value here. Now they say yes, it should be $9 here. Now you see below I
[19:26] said that this is the current market price here. If this keeps increasing because we have to take profit only because of the increase.
[19:39] closed automatically. The position will be closed and how much profit will it give us? Of and how much profit will it give us? Of 211. This is our take profit. clear? Now you come down and understand the stop loss. Here you have to remember
[19:53] that you have taken buy long, so always keep in mind that buy long means that if the price increases then we will make profit and if the price falls then we will incur loss. So now we have to avoid further losses. I will put a value here.
[20:06] Which value is it? See, the market price is currently at 0.72. I say brother, if its price comes down to 0.70. Ok? So our trade gets closed. You look at it carefully. I said what would happen if this market price kept falling to 0.70
[20:22] ? Our trade will be closed automatically. Then how much will the loss be? Of 0.28. There is very little damage. fixed bugs? That means I have placed the price at a slightly lower price and the more you place the lower the value here, the
[20:35] greater the loss you will incur. Ok? So if I make the value of 0.5 here. So now see, you say that when your market price decreases and reaches this price, then the trade will automatically close and it will
[20:50] automatically close and it will give you a profit of 2.68 and then leave you with a loss. There will be loss here. So here I increased the value because increase will result in profit. Here I have reduced the value because reducing it will result in loss.
[21:02] So there can be profit as well as loss. I put a stop at both places saying that brother, it should not be more than this. I further reduce this value. That means I keep it at 0 70 only. Ok? So that if there is any loss, it will be
[21:15] very less. Now you see its situation. Now if this market price increases to 0.9 then it will be my only profit. If it reaches 0.9 the trade will be closed. How much will the profit be? Of 2.11. But if it does not go up,
[21:31] instead of going up the price comes down and while coming down it reaches here at 0.70, still the trade will be closed. Ok? But at that time I will suffer loss because coming down will result in loss. How much loss? Of 0.28. It is very minor. Ok? Now just
[21:45] confirm below. And here also he is telling all the same things. Yes. Take profit is showing that it is at G0. Whatever I have just explained, that is all. Look, the take profit is telling that when your price goes to the market price of 0.90,
[21:58] then take profit will be applied. When will the stop loss be applied? When your price goes to 0.70. And how much will the profit be? Of 211. How much will the loss be? I have kept a higher profit of 2.8 0.28. I have kept the losses to a minimum. Ok? Now just
[22:13] confirm this. Now see your trade has been successful. Now we have no worries. Why? Because even if our trade incurs a loss, how much will it be? $.28 makes just a few bucks. Ok? It might not even be worth ₹100. Okay, right? That means there will
[22:29] only be a loss of $.28. But if there is any profit, how much will it be? Of 2.11. Now should I use it or not? Binance will work on this itself. As soon as it touches the values, the price will go up. Ok? Then our work will be done automatically. Now see, whatever we have is
[22:43] going into loss. But I will not touch it. Because now I have added another thing that you can do to close the trades at any time by clicking here and closing. Otherwise, if you want to change the take profit and its value, there is a pencil
[22:55] here. By clicking on this, you You can also change the leverage. So sir, the scene is that
[23:07] now I have installed it. So you can close it or not as per your wish. But I have explained to you everything about how this future trading works and the great benefits of take profit stop loss. Make it mandatory. People keep commenting and
[23:20] asking, what if you don't feel like applying it, brother, if you don't apply it, what else is there to lose ? By the time your market is on, if the liquidity price reaches the target, then all your dollars that you have invested here in margin are gone. Ok?
[23:32] If this market price reaches liquidity then all of it gets lost. They end. Okay, right? You have to remember this. The trade still has to be closed. Now I did not take any risk. Now what have I said? Yes, if the price increases then
[23:44] I will make profit. If it increases to 0.9 then it will give me ₹2.11. Ok? If it decreases and by chance it reaches 0.70 then also this trade will be closed. But I wo n't suffer much loss. Just I will lose $28
[24:00] which is not even ₹100 I think. Ok? So just this is the future trading and we have used the buy long option. Inshallah I will make a video on cell shorts also. If you like Bye Long then definitely like it.
[24:13] Comment as much as possible. That's why I feel like making a video. Otherwise I don't feel like it. Now after how many days I am making a video. Otherwise I didn't feel like it even today. Ok? So please like and subscribe. If you liked the video, it
[24:25] please like and subscribe. If you liked the video, it detail, people do not tell you anything even after taking money from you, brother. Ok? So thank you so much. brother. Ok? So thank you so much.
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