Binance Futures Trading Guide — Step-by-Step Guide & Transcript

[00:00] Futures trading can be very confusing and very complicated to manage. So that is why in this video, I'm going to show you exactly how to do futures trading on Binance. And here is what I'm going to be teaching you in this video.

[00:12] So first, I'm going to be showing you how to use futures trading section on Binance. Secondly, I'm going to show you how to open futures trading position using market and limit orders. And thirdly, I will show you how to trade with leverage.

[00:25] Fourth, I will show you how to sell stop loss and take profit. Fifth, I will show you how to know your liquidation price. And finally, I will show you how to use search mode on Binance. So ensure to watch this video to the very end.

[00:38] Now let's get started. To start trading on Binance, you will need a Binance account. Now if you have a Binance account, kindly log into your Binance account. I will follow this step by step on this tutorial. But if you don't have a Binance account, then check the description of this where you are

[00:52] going to see my Binance link. Click on that link to restore Binance and you will find the chance of getting some deposit immediately erase by using my name now once you have done setting up your binance account and you've logged into your binance the next thing you need to do is to make some deposits to binance

[01:07] you need to deposit the money you use for trading so to make your deposit you click on assets at the bottom right now once you click on assets it brings you to the binance wallet section now in this wallet section the next thing you need to do is you click on add funds so once you click on

[01:23] at once binance gives you numerous options to deposit actually the best options i normally use to make my deposits is this crypto deposit so i always deposit direct crypto to binance so

[01:36] what i will do is i'll just click on deposit now once you click on deposit binance is going to pop up this page for you for you to select the one you want to take away so it depends on the coin you have and the coin you want to move to binance so for instance let's go to the usdt if you look

[01:51] here you're going to see usdt but if the coin you want to deposit is not listed among these coins all you need to do is to click on the search box now once you click on it you search for the coin you want to deposit so i can actually just type usdt and once you search for it it's going to

[02:06] pop up the coins then you click on the coin now once you click on it binance is now going to ask you to choose your network so always make sure you know the network you are going to use for your your big money so in this case i'll just select dsc okay now once i select dsc binance is going

[02:21] to show me my wallet address just like you can see here all i need to do just to click on here and copy the wallet address and once i have this wallet address what i need to do is to go back to my private wallet and send some coins to binance or maybe if someone was supposed to send me some

[02:38] coins i'll send that person this wallet address and immediately that person send any coin to to get deposited on binance and that is how simple it is for you to deposit your coins on binance so after making your deposit the next thing you need to do is you come to this

[02:53] wallex section okay once you are in this wallex section you can see the amount you have already deposited and you are going to have three accounts on your wallex section on binance the first account is going to be your spot account now this is where the money you deposit

[03:07] is going to land the second one is aim now this aim is when you are doing some kind of taking on binance or any program on binance then your money will be there then the next one is features account now this features account is where the money you're going to use for trading

[03:23] features is going to be so for us to trade features the next thing we need to do is to transfer this money we have deposited so what you need to do is you click on this transfer now once you click on this transfer it pops up this page now in this page you'll be able to

[03:37] transfer from one wallet to another wallet so first of all we select the account we are transferring from so we are moving from spot wallet to features wallet so i'll click on this small arrow this

[03:51] double arrow by the right now once you click on it it's going to switch the wallet so it's going to move the wallet that i'm transferring from so in this case i'm transferring from spot wallet then i'm transferring to so this i'll tap on this and change it to features okay so i'll search for

[04:07] features and i'll select this usd and features okay see usdm features i'll tap on it now once i click on this it's going to be selected for me which means i'm transferring from spot wallet to

[04:20] usdm features so the next thing i'll click on this coin section now i'll select the coin i want to transfer. in this case i have UADT so i'll select this UADT. once you set the amount you want to transfer the next thing is you click on this amount box now once you click on these amount

[04:36] box you'll be able to enter the quantity you want to transfer so i can put 5 here but if you want to transfer everything all you just need to do is you click on this Mark. now once you click on max you're automatically going to infuse all the coins you have on that particular

[04:50] coin the next thing you need to do is you click on transfer now once you click on transfer automatically it will transfer that your coin from that sports wallet to your futures wallet

[05:02] now after moving your trading cash card from this sports wallet to the futures wallet you are ready to start trading on binance for you to trade futures on binance you click on this futures option at the bottom now once you click on it it brings you to the binance futures trading section

[05:16] in this binance futures trading section the next thing you need to do is to choose the coin you want to trade or to choose the pair you want to trade if you look at the top left you are going to see btc usb now that is the pair that was automatically selected for me here's my difference

[05:30] you might see any coin but it doesn't matter now any coin you see there and it's not the coin you want to trade for you to change that coin to choose another coin you want to trade you click on it so if i click on this btc usb once i click on it it opens this market section for me now it

[05:46] this market session i will just need to choose the coin i want to trade so i can actually scroll look for the coin i want to trade so but this can be very static so the best option is just for you to click on this search bar now once you click on this search bar you'll be able to choose the coin

[06:01] you want to trade and in this case let's say i want to trade xrp so let's do xrp for case study so i'll click xrp now once i click xrp you are going to see options to choose the coin and the

[06:15] first option we see here is xrp usdt then the second option is xrp usdt now always choose your trading pair based on the coin you have the coin you are going to be using for trading in this case i have usdt so if usdt i will use for this trading and that means i have to choose this xrp usdt and

[06:33] let's say you have usdt you can actually choose that option but for this particular case i'm going to choose this xrp usdt so once i click on this automatically you can see that bitcoin has changed from gtc to utp and that is how simple it is for you to just switch the three coins or to choose

[06:50] the coin you want to trade on binance okay hold on guys before we continue if this is your first time of watching any of my videos or coming across my channel you are welcome to my channel and i'm nelson i create simple and easy to follow crypto tutorials just like this one you are watching

[07:06] so kindly subscribe to this channel turn on the notification bell and like this video if you've done that let's continue now that you choose the card you want to trade the next thing we are going to do is to explore this trading section to make it less intimidating for you so if you look here

[07:22] you see this small icon if you click on it it brings you to the binance chart section and this is where you can do your technical analysis on binance so you can take your time to explore it in this video i'm not going to cover technical analysis so i've already done the video on

[07:37] technical analysis for you to see that video check the description of this video and you're going to see a link leading you to my technical analysis tutorial now the next thing you are going to see here you see this buy so now when you are on this buy it means you are about to long the market then

[07:54] if you click on this sell it means you're about to short the market so this is where you can switch between long and short again if you want to long if you want to short we'll explore this further then if you look by the right side you are going to see these numbers in red and you see the ones in green

[08:09] now this is what is called the order book so the order book shows you the buying orders and the selling orders the ones in red are the selling orders and the ones in green are the buying orders then this price in center is the actual price of the coin you are trading at the moment in this case this is the actual price of

[08:27] xrp as of now and that is how shanko is trading in that 50 every other part will be explored as we go on with this tutorial before you open any future trading position on binance you really

[08:39] need to know the direction you want to trade now future trading gives you two options the first option is for you to long the market and the second option is for you to short the market now what we mean by longing and shorting the market simply means that in futures trading you

[08:51] have option to trade if the market is going up and you still have the option to trade if the market is going down so to put it more into context when the market is going up for instance let's say xrp is pumping and you want to make profit as the coin is pumping you long the market now longing the

[09:07] market simply means that you are expecting the market to pump and it's only when this coin comes when the price goes up that you're going to make profit but if you are shutting the market you are trading in the downtrend direction we are trading kind of if the market is going down if this coin

[09:22] is going down you can only make profit when it's going down that's how it is going down and you're shutting the market you make profit but if yourself is fast enough you start losing money because what you are doing is you are shutting the market and on that case you can only make profit when the

[09:37] coin is going down in price so the same thing has to do with long in the market so if you are on a long position you can only make profit if the coin is going up this time but if the coin start going down the price you start losing money so that's what we mean by longing and shutting the market

[09:54] now to open your long position you make sure that this place is showing by on balance so if it's like this then it means you want to shut the market but to long the market you select this buy now what is the led by if you look at the bottom left you are going to see buy slash long

[10:09] so that means you are ready to launch the market now once you choose the direction you want to trade the next thing is to choose your margin mode now margin mode on binance is very very important to understand when you want to trade features if you look under this buy you are going to see

[10:22] isolated so if you click on this isolated you will be able to choose your margin mode but what is actually this margin mode now margin mode simply means how your capital is being used for your futures trading so the first one is this isolated margin now when you are trading with isolated

[10:38] margin you are kind of isolating your capital to a specific trade let's say you have one thousand dollar trading capital and you are trading with this isolated margin now this is how it works on this isolated margin with your one thousand dollar trading capital you open a position with

[10:53] hundred dollars now what it simply means is that you are going to be isolating that hundred dollars now all your losses will be within that hundred dollars so no matter what the market does or no matter the kind of movement that happens in the market you can never lose more than that hundred

[11:07] dollars that you open that trading and that is how this isolated margin works so it helps you to isolate your capital and help you manage your risk now cross margin cross margin is a more advanced

[11:19] one cross margin enables you to trade with all your capital example you have one thousand dollar trading capital and you want to open a position with hundred dollars now what cross margin does is that cross margin is going to support that whole trade with your one thousand dollars so

[11:34] which means if the market keep going against you the exchange is still going to be using all your capital to support that trade so the moment that your capital is exhausted the trade is going to be closed which means in cross margin you are using all your capital to trade even if you open

[11:48] that trade with hundred dollars so make sure you use cross margin when you have already gained some the experience in future stream for this tutorial i'm going to be using isolated margin so i'll select this isolated margin now once you select your isolated margin the next option is for you

[12:04] to choose your leverage if you look at that same line here you see isolated you see 5x now that is 5x leverage to change your leverage you click on it now once you click on it it brings you to this page for you to choose your leverage but hold on before we even choose leverage what is even leverage

[12:21] Okay, now look at it this way, leverage is a feature that lets you treat larger positions with a smaller amount of money, increasing both your potential profits and potential losses.

[12:33] So for example, let's say we select 10x, okay, so I will pick 10x leverage. Now what I've just done is I've changed this leverage to 10x. Now if I'm taking this 10x, it simply means that any amount I'm using to open a trade

[12:46] will be times by 10x. to make you understand this better let's assume you have $100 and you want to open the $1000 position all you need to do is to use like 10x leverage now what that leverage does is it's going

[12:59] to multiply that your $100 to $1000 position it's not going to multiply your capital but it's going to help you open a larger position than the $100 can afford so what this does is it helps you run

[13:12] larger positions and the same time maximizing your profit and maximizing your loss normally if you are trading with hundred dollars and the material goes up one percent one percent of hundred dollars

[13:24] is going to be one dollar but if you are using tennis leverage and you use that in hundred dollars to open a position if the coin you are trading moves one percent that one percent is not going to work ten dollars for you so that is showing you that that leverage you use multiplied that's your

[13:42] position by 10 places so the leverage you use is very very important and you shouldn't use leverage blindly so for this tutorial i will just use something like 10x but always try to use something

[13:55] like 3x to 5x or 10x when you are starting out then when you trade over time you get more experience of how leverage works then you will not know the leverage that starts you better in this

[14:07] case i'll just put the next here now after putting the leverage you click on confirm you can see that you have changed your leverage or you have picked the leverage you want to trade with after choosing the leverage you will use the next thing you need to do is to choose the other

[14:23] type you are going to open your trade rate so like i told you in this video i'm going to show you two other types which is market order and limit order let's start with market order to trade in market order you click here now once you click here it shows you these options and you sell in markets

[14:37] now once you sell in markets you have the option to start trading with market order so market order gives you the opportunity to open the trade using the current market price currently you can see that xrp is trading at the price of 1.0473 and as i'm using market order i will be trading with the

[14:54] current market price and even if the price is going up or coming down the exchange is going to open that trade based on the current market price because i'm using market order now after choosing market order the next thing you need to do is to put the amount you want to be the trade list

[15:09] okay so in this case let's say i want to put this trade in five dollars so i'll put five dollars here after i start typing the amount i want to open this trade i can equally still select my capital using this bar if i toggle this bar you can see that it selects my capital by percentage

[15:22] and right here you can see shows 50 percent so if i leave it here it means i'm using 50 percent of my capital to open this trade now once you are done putting the amount you want to do this trading the next thing you need to do is you click on this buy or long so once you click on that button it

[15:39] shows you this confirmation page now in this confirmation please take your time check the orders properly make sure that the amount you are opening with is the exact amount you want and check the price of the coin and everything okay so the first one you see here you see price

[15:54] which is market price the second you see the amount that is the amount i will use for opening this trade and the other one is max price max price means just market price like the current price of the coin and you can see the current price of this one then you can see estimated

[16:08] price after trade and finally you can see estimated liquidation price so this estimated liquidation price simply shows you the price this coin is going to get to and your trade will get

[16:20] So what I mean by being liquidated is that once this coin gets to this price, it means my capital can no longer sustain this trade and Binance is going to close this trade for me and I will lose every money I used in opening this trade.

[16:33] So always make sure you pay attention to this liquidation price. Now once I have confirmed this whole thing the next thing I do is I click on this confirm and once I click on this confirm you can see that my positions was opened for me and if you look at this position the first thing you see here is XRP

[16:51] USDT and before that XRP USDT you are going to see that B on the screen that simply indicate that this is a long position whenever you see this it helps you understand if you are trading a long position or short position also you are going to see the margin mode you are using and your leverage

[17:07] which is here you can see isolated 10x which means amazing isolated magic then after that if you look under you see d and l usb now this shows you the profit you are making in dollars okay which is your

[17:20] profit and loss by the right side you get to see the percentage you've made or you've lost you can see that currently is showing plus two so which means i have made plus two percent on this street then under that same section you are going to see size so if you look at this size by the

[17:37] left it shows you the exact value of your trade and the current value of this trade is $38 remember i am using 10x leverage the margin shows you 3.85 which means this is the actual amount i spent to

[17:52] open this trade so for just using 3.85 dollars to open a trade i was able to open a trade worth $38 dollars this is because i was using 10x leverage then by the right side you see margin ratio this

[18:06] show you the ratio of your magic are the dampers you see entry price this shows you the price you open this trade then you see mark price this equally shows you the current market price of

[18:19] this coin then by the right side it shows you the liquidation price which means if xrp gets to 0.9471 my position will be visited and that is how simple it is for you to understand your trade on binance

[18:33] to continue this tutorial i'm going to close this trace so i'll just click on close and that is how you can close your trailer actually once you click on close it shows you this option and for you to close your trade you decide the percentage you want to close so if i toggle this bar i can decide to

[18:47] close 50 of this trade or just 100 which i'm going to do then after deciding the percentage you are going to close then you click on confirm now once you click on confirm it will ask you again if you

[18:59] really want to confirm and you confirm so let's quickly look at how you can equally open short positions using the same market order so to open short positions you click sell once you click sell it gives you the option to open short positions so after switching to the sell side i'll just enter

[19:15] the amount i'll open the trade so i'll click here then i'll put five dollars after putting the amount you're opening your trade with you click sell or short so i'll just click it oh other can not be less than five dollars okay what this interesting is that the amount i'm using to open

[19:30] these trades is less than the minimum finance required so finance requires your trade must be up to five dollars so in this case you can see that what i put here is five dollars but it's not actually five dollars because i'm using tennix so the value of this should be fifty dollars so

[19:46] five nine ten will be fifty so i'll put additional zeros here to make it fifty dollars and i'll click sell or short now once you click it you can see it has just brought up that confirmation page again

[19:59] so in this case i'll click confirm you can see that my short position just opened okay so if you look here just like i told you initially the first one was showing because this time around it's showing you red this shows you that this is a short position and that is how completely for you

[20:15] to hold your long and short position using market order on binance now that you've seen how market order really works let's quickly see how you can open your trade using the limit order so first of all you click here and you select limits okay then you decide the direction you want to trade are you

[20:31] shutting the market are you longing the market in this case i'll just long the market so after choosing the direction but before i even open this trade you need to understand limit order limit order is an advanced market order it's the kind of order that gives you the option to decide the

[20:45] price you want to buy or the price you want to put your trade with unlike the market order that just you the current market price and doesn't give you that option to decide the price you want to open with to open your trade with limit order you click here and you enter the price you want to open this

[21:00] trade with so let's say i want a long xrc when it gets to one dollar and it does so i'll just put one dollar the next thing is to enter the amount i'm opening this trade with so in this case i will use 50 percent so i'll toggle this to 50 percent okay and once you have done the task and once you

[21:18] enter the amount you are opening your trade with the next thing is you click on buy or long now once you click on buy or long it's going to place your order now to see your order if you look here you are going to see positions then you see open orders if i click on that open orders you can see this

[21:33] order that i just placed now the question is why didn't this show under position just like when i use market order now positions only shows you your current order like order that is active why open

[21:45] order shows you the order that are still pending like other that are waiting to be activated now why this order is pending is because i use the in this order and that in this order i said that i will open this trade when it gets to one dollar and currently xrp is currently at 1.04 x4 which

[22:03] means this order has to remain here till xrp gets to one dollar and even if it takes one year three years three years one month two months any day it takes for srp to get one dollar this order will

[22:16] remain here on binance and that is the due phase part of limit order so limit order helps you to decide the price which means after doing your analysis you can decide the price you want to daily activities

[22:31] and anytime you can't get to that price by now to open the trade for you that is how simple this product works so but what if you really want to open your trade immediately with limits further now this is what i'm going to do i'll cancel this trade now once i cancel this

[22:46] show i'll come back here instead of putting price that is below the current market price i will just use the current market price to open this trade so i'll click here and automatically the price will be shooting for me now what i just did is i clicked the price of the coin okay and automatically it

[23:03] was fueling for me on that price section then i decided i'm opening this trade so i will use this equipment of my character and after that i will click on buy or launch now you'll notice what happened the order had just been opened and if i take positions you can see that i now have the

[23:19] order right here because i use the current market price to even with limit order the trade was open but the main important side of limit order is that limit order gives you that access to

[23:31] you will list the price and decide the price based on your own terms so that is the duty part of the limit order and same approach goes in both ways either you are shorting the market or you are longing the market limit order just helps you to decide that price that you are going to open your

[23:46] trade let's now look at how you can set your stop loss on your trades on binance first of all you can set your stop loss in two weeks you either set stop loss before you open the trade or you

[23:58] set stop loss after your trade has already been opened so first of all let's start with certain stop loss before we open the trade so we are still using xrp for this example if you see you can see the price of xrp and this is limit order just like you already know so let's say i decide to open this trade with

[24:15] 50 percent of my capital and i double the price to 50 percent pay attention here you are going to see this tp slash sl that is take profit and stop loss so all you need to do is you click on this small box before that it is like yourself once you click on it it opens up these two separate boxes for you to

[24:34] enter your take profit price and your stop loss price but before we continue what is really stop loss stop loss is a risk management order or you look at it as stop loss is a risk management feature

[24:47] that helps you cut your own losses like it helps you cut your own losses with stop loss you'll be If we are to say that you paying a loss your risk doesn go to you

[25:35] ਹোছে রৃ রে র্চে, কো রেক বোছে আরে, না প৆ন্ট টারাস You need to calculate it so your stock loss prices should depend on your loss like the kind of you need to take your time

[25:49] Calculate how much you are willing to lose in the trade and how much you are going to gain based on your technical analysis Or based on your research so far concerning that point And once you have identified your state profit price

[26:03] And your surplus price all you need to do is to put it here on binance And once you put it here, you just click this buy or long. Now once you click buy or long, automatically your trade will be opened.

[26:15] Okay. Now pay attention. This time around, you set this surplus before opening this trade. And open this trade together with this surplus. Now if you look here, you are going to see that entity slash yourself. And you can see here, you can see that this trade already has surplus.

[26:31] Then also, if you check open orders. Look at here, you are going to see open orders. if you click on it under open orders you have basic then if you check conditional if you click on it you find out that you have an order here now this order in this open order is actually the stop loss and

[26:47] take profits yourself so make sure you don't cancel this and don't get confused when you open a trade with stop loss and you see this on that open order just know that this is your stop loss so now let me quickly show you how to do your stop loss after your trade has been opened now let's imagine you

[27:04] are in a haste or you are rushing to open the trade probably because the coin has gotten to the price you wanted so the best thing to do is maybe i will use market order for example maybe i quickly open this trade with market order and i was rushing so i just opened the trade and immediately opening

[27:20] the trade you'll notice i didn't set the purpose so what i can still do is right here if you look here you are going to see tp slash under this option on this particular trade so all i need

[27:33] to this to click on it and once i click on it it brings me to this page to set my stop loss and take profit and i can just put my take profit which is 1.1 then the stop loss i will do one and this page

[27:48] is going to give us more information like you can see it's already showing that i'm going to make 1.82 dollars which is 47.81 percent then the stop loss 2 is almost the same percentage which is one

[28:01] by one ratio when we are calculating uh take profit and stop loss ratio so that is how simple is this for you to set your stop loss even after your trade has been opened and once you fill this

[28:13] information once you fill in your take profit price and your stop loss price you click on confirm now once you click on confirm normal binance is going to pop up a confirmation page to make sure you know what you are doing then after you cross check you click on confirm and once you click on

[28:28] confirm it has already been set but this page is not automatically going to be closed all you need to do is just to start anyway or to pull it down drag and pull it down or simply ensure just tap at the top of your phone and automatically that page is going to disappear if you still look here you

[28:44] can still see your stop loss and take profit then also if you want to edit your stop loss and pay profit all you need to do is right here where you see it is yourself you see that small pencil ascon you click on it once you click on it it still gives you the option to adjust your stop loss and

[29:01] take profit so that is how simple it is now let's look at how to use hedge mode and finance but before we even start what is hedge mode now hedge mode is a feature that lets you long and short the

[29:13] same coin at the same time so let me give you example first of all let me long xrp okay so I'm just longing this coin right now you can see I've longed the coin pay attention I have a long position

[29:25] okay like you can see if you see here you can see that the showing frame okay that shows you that this is long position and let's say maybe I want to short this XRP at the same time so I want to have two

[29:37] trades I want to have a long position and I want to have a short position on XRP so now this is what I'm going to do so I will go back again to short the XRP and probably this time put it on short

[29:50] and you can see that my trade changed instead of opening two positions for me this trade swapped so the long position ended and the short position took over so which means I can not long and short

[30:04] this coin right now but don't worry about that this is very simple to activate on Binance to use ขนาด nyemese-e ಈ-e qy te cooi งi nishwa nhi ಈ-mode kuwa ki jan dhe tu te ye. Nyi hee anmei apoyi ke ndandona pexinna, o fere ndonane hati ki fere ndala ipinikau,

[30:19] wote anmei an wote na țe qiyin nyanne zo acu asim, ime tazu diye siqab nye nyemo yi ni icu gwa nga ngane ți, anme ni өm pevifete o fere ninin me to, apoi ni kipoo hape kwa sengai ngi nenye,

[30:33] mwen hape, mi ki ke ndeglo, mwen inge-ngo nye pi fere kipoa, I'm longing it and at the same time I'm shorting it. Now you probably will see that the interface changed.

[30:46] Currently you can see that the open long and short is now at the bottom showing you that you are already on hedge mode and you can short this coin at the same time the way you are longing it. So all I need to do is I'll click on focus short again and boom you can see now that I have two trades. I have

[31:04] a long position on XLT and i have a short position on XLT but why would you even do this why would you be longing the same coin and sheltering the same point at the same time now pay attention

[31:17] to this this is very very important now when you come in trading sometimes you need to hedge your trade kind of you need to have an alternative but it's not all the time so don't misunderstand

[31:30] it is not that every time you open a trade you can open an open a trade too no that is why you need to always do your technical analysis and analyze your coins and know when to empty a trade and when

[31:42] to leave let's say you've been on a trade you've been on uptrend maybe you are longing this coin and the coin has been going up and based on your analysis it has broken a major support or a major

[31:54] trend trend has changed and you are now sure that this coin is already moving to a downtrend so and but somehow you still kind of feel maybe the coin might say come back then the best thing for you to

[32:06] do is to open a short position giving the trade a gap maybe you enter this trade maybe i enter this trade around one point one one point zero five uh dollars which is xlp price and that's how they

[32:20] are dropped to one dollar but i still kind of feel that xrp will get back to one dollar letter so to save my capital sometimes what i can do is i can open a short position so that if slp continue going

[32:33] down i will start making profit that will offset the losses i have suffered from the long position if this is too much for you to take in maybe just rewatch this strategy and go slowly and

[32:48] then make more sense to you but use hedge mode responsibly so that you will not lose money because if you use head mode wrongly it can probably cost you serious damages so that is how simple it is

[33:00] for you to use hedge mode from binance and there we go guys congratulations for learning how to trade features on binance if you have any question you can join my community where we learn and go

[33:12] together on telegram so check the description of this video and you're going to see my community link link to telegram click on that link to join also like this video subscribe to this channel so