Opening Binance USD-M futures requires passing a risk test first—an exam of 10-20 questions to confirm you understand the risks of futures trading. Strong warning: 90% of retail investors lose money in futures, and the liquidation rate for beginners in their first week is 70%. If you just want to learn, we recommend not opening an account or only using the lowest leverage + a very small amount. Register an account from the Binance Official Site, download the APK via the Binance Official App, and see the Download Center for the full platform process.
Opening Process
1. Complete KYC Level 2
Futures trading requires KYC Level 2 or above (Level 3 in some countries).
2. Enter the Futures Page
- In the APP: Bottom menu "Futures" → "USD-M"
- The first time you enter, a prompt to "Open Futures Account" will pop up
3. Read the Risk Disclaimer
Binance will display a lengthy risk disclaimer:
- Futures are high risk
- You may lose your entire margin
- Not suitable for ordinary investors
- ...
Read it carefully (do not just blindly agree).
4. Pass the Risk Test
An exam of 10-20 questions covering:
- Leverage principles
- Liquidation mechanics
- Funding rates
- Maintenance margin
- Risk control
Example Question:
- Under 100x leverage, how much of an adverse price movement will trigger liquidation?
- A. 0.1%
- B. 1%
- C. 10%
- Answer: B
You must get all questions right to pass. You can retry if you get them wrong.
5. Agree to the Terms
Agree to the terms of service after passing the test.
6. Transfer Margin
- Spot Wallet → Transfer to Futures Wallet
- At least a few USDT (depending on the amount you want to trade)
7. Start Trading
Futures features are now unlocked.
Features of USD-M Futures
| Feature | Description |
|---|---|
| Margin Currency | USDT |
| Underlying Asset | Various cryptocurrencies (BTC / ETH / SOL, etc.) |
| Leverage | 1x-125x (Depending on the instrument) |
| Type | Perpetual (No expiration date) |
| Price Index | An aggregated price from multiple exchanges |
| Funding Rate | Every 8 hours |
| Settlement | Real-time at market price |
Steps for Your First Futures Trade
1. Select the Contract
Enter the USD-M Futures page:
- Select the trading pair at the top (e.g., BTCUSDT)
- Check: Price, 24h change, funding rate, open interest
2. Set the Leverage
The "Leverage" button at the top of the page:
- The default might be 20x
- Beginners should change it to 1-3x
- The system will warn about "High Leverage Risk"; confirm it.
3. Set the Margin Mode
There are two modes:
Cross Margin
- All positions share the same margin pool
- Pros: A single position can "borrow" from other margins, making it less likely to be liquidated
- Cons: One liquidated position can drag down all other positions
Isolated Margin
- Each position has independent margin
- Pros: Liquidating one position does not affect the others
- Cons: You must set the margin separately for each position
Beginners should use Isolated Margin so the impact is controllable.
4. Choose the Direction
- "Buy/Long" (Bullish): You profit if BTC goes up
- "Sell/Short" (Bearish): You profit if BTC goes down
5. Enter the Quantity
Input:
- Margin amount (USDT)
- Or position value (USDT)
Example:
- 100 USDT margin × 5x leverage = 500 USDT position value
6. Confirm Opening the Position
Click "Buy/Long" or "Sell/Short" → Confirm → The position is established
Key Concepts Explained
Margin
- The money you put down as collateral
- Determines how large a position you can open
Position Value
- Margin × Leverage
- Determines the multiplier for your profit and loss
Maintenance Margin
- The minimum margin required to keep a position open
- Dropping below this → Forced liquidation
Mark Price vs Last Price
- Last Price: The most recent traded price
- Mark Price: An aggregated price from multiple exchanges
- Liquidation is calculated based on the Mark Price (to prevent manipulation on a single exchange)
Funding Rate
- Calculated every 8 hours
- Longs and shorts pay each other
- Holding long-term can accumulate substantial fees
Safety Tips for a Beginner's First Trade
1. Use the Lowest Leverage: 1-3x
- 1x is almost equivalent to spot (but involves funding rates)
- At 3x, you only get liquidated if the price drops by 33%
- Do not use leverage above 10x
2. Keep Position Sizes Extremely Small
- Keep total funds < 1% (e.g., 10,000 principal → single position 100 USDT)
- Even if it's liquidated, it won't affect your life
3. You Must Set a Stop Loss
- Set your stop-loss price in advance
- Control your losses to 30-50% of the margin
4. Hold Positions for a Short Time
- Close your position within a few hours
- Avoid ongoing funding rates
- Avoid overnight risks
5. Be Mentally Prepared to Lose
- Treat the margin as if it is "already lost"
- Don't let it impact your daily life
USD-M vs Coin-M
Binance offers two types of futures:
| Dimension | USD-M | Coin-M |
|---|---|---|
| Margin | USDT | The corresponding coin (e.g., BTC) |
| Suitable for | Wanting to use USDT for futures | Long-term holders of a specific coin |
| Complexity | Lower | Higher |
| Liquidity | High | Medium |
Beginners should only use USD-M—the logic is intuitive (USDT in, USDT out).
Funding Rates Explained in Detail
Funding rates are calculated once every 8 hours (0:00 / 8:00 / 16:00 Beijing time):
Formula (Simplified)
Funding Rate = (Perpetual Contract Price - Spot Index Price) / Spot Index Price
Positive Funding Rate
- Perpetual > Spot (Market leans bullish)
- Longs pay shorts
- If you are long → You pay
- If you are short → You receive
Negative Funding Rate
- Perpetual < Spot (Market leans bearish)
- Shorts pay longs
- If you are long → You receive
- If you are short → You pay
Cumulative Costs
- A standard funding rate is around ±0.01-0.05% per 8 hours
- In extreme markets, it can reach ±1%
- Long-term holding can rack up huge cumulative costs
Example:
- Funding rate 0.05% / 8 hours
- Daily 0.15%
- Weekly 1.05%
- Monthly 4.5%
The cost of funding rates for long-term holding cannot be ignored.
Example Questions from the Risk Test
Common questions from the Binance risk test:
- What is the liquidation threshold at 100x leverage? 1%
- What does the maintenance margin ratio mean? The minimum margin ratio to maintain a position
- How often is the funding rate charged? Every 8 hours
- What is the difference between Isolated and Cross margin? Whether they share margin
- Will a perpetual contract expire? No
- What price is used to calculate liquidation? Mark Price
Reviewing the Binance "Futures Beginner's Guide" or "Academy" content will help you pass easily.
Disabling Futures Trading
If you feel the risk is too high and want to close it:
- In the APP: "Account → Security → Disable Futures Account"
- Complete 2FA verification
- Futures trading will be disabled
After disabling:
- You can no longer open new positions
- Existing positions must be closed first
- Re-enabling will require taking the risk test again
Frequently Asked Questions
Q: Can I use BNB to offset futures fees? A: Yes. You get the same 25% discount.
Q: Can money in futures be withdrawn directly? A: No. You must transfer it back to your Spot Wallet before withdrawing.
Q: How is floating PNL calculated in USD-M futures? A: Position Value × Price Change / Current Mark Price.
Q: If I lose everything in futures, does it affect my spot account? A: It depends on Cross / Isolated. Isolated only affects that position's margin; Cross affects the entire futures wallet. It does not affect the Spot Wallet (futures and spot wallets are separate).
Q: Can I trade futures 24/7? A: Yes. Except during Binance system maintenance (which is extremely rare).
Q: Can I use futures for hedging? A: Yes. For example, if you hold 1 BTC in spot, you short 1 BTC in futures → locking in its current value. But actual execution is complex, so it is not recommended for beginners.
Summary
Opening Binance USD-M futures requires passing a risk test (10-20 questions). Strong warning: 90% of retail investors lose money + beginner liquidation rate in the first week is 70%. If you must trade: use the lowest leverage (1-3x) + keep your position < 1% of total funds + always set a stop loss + hold for a short time + be mentally prepared to lose. USD-M (USDT margin) is simpler than Coin-M; beginners should prioritize USD-M. The funding rate is charged every 8 hours, and cumulative costs for long-term holding can be significant. If you feel the risk is too great, disable the futures feature directly and focus on spot trading.