What Is Future Trading? What Are The Types of Binance Future Trading? Full step by Step guide 2025

What is future trading? What are main point in future trading? How Many Types in Binance Futures? is it safe to use? Many beginner want to learn about these question and it’s very important to know, so we will discus about them step by step.

future trading is a feature on binance exchange where you trade future contracts instead of buying actual coins/crypto, You predict the Movement that where coin will be move next and trade crypto currency using leverage, In future trading you can make profit even if market is going up or down.

But future trading is very risky so if you are a beginner don’t use future trading for now trade in spot trading, learn about market first, make yourself expert in crypto then trade in future when you are confident in yourself.

Main point of future trading:

There are some main/key point in future trading that you need to know.

You don’t Own coin/crypto	You trade future trading in contract base, so you will not own any crypto.
leverage	In leverage you borrow money from trading platform and trade with that money, you can borrow up to 125X(if you have 100 dollar you can trade with 1000$ by borrow money from that trading platform at 10X leverage.
liquidation	When you borrow money you will get a liquidation price( a certain amount). when the price will move against your choice you will start losing money and when the coin/crypto touch that amount your account will get liquidate(empty)
Long position	There are two positions that you can select in future trading LONG and SHORT, you need to select 1 position out of these two position to start trade, so if you chose long position you will make profit if coin move in up side.
Short position	and If you select short position you will make money when the coin move in down side.

this is the main Point of future trading, Let’s understand it with Example.

let’s say you have 1000$ and you wanted to buy ETH.

The current market price of ETH is = 3000$

you can buy 3000$ worth ETH in 1000$ by borrowing money from platform where you are trading ,

You need to select 3X leverage and put your 1000$ you will make a contract of buying ETH that is worth 3000$.

Now you need to select what position you want to go with long or short.

After selecting the position you trade is done, now you will get money if ETH is going where you select it and loss money when it move opposite direction.

you open long position of ETH at 3000$

If ETH go 3000+ like 3050$ 3100$ you will get profit

But if ETH go opposite 2990$ 2950$ 2900$ you loss money.

This is what is important for you to know about future trading and what happened when you open a trade, now let’s discus about what types of future trading are there and what are the uses of these in binance.

Types of Binance Future:

We will mostly trade in binance so let’s discus about Types of Future Trading. There are 4 type of future trading.

USDT-M Future:

USDT-M is type of future trading where you trade crypto future contracts in USDT(tether).

In simple words to tell you, you trade crypto future using USDT as margin, your profit and loss both are paid in USDT, you don’t need to trade or hold BTC, ETH, BNB and any other coins. USD and USDT rate are same, they did not give profit or loss when you hold then, you can trade with them or withdraw your funds with the help of those coin easily.

For example:

you have 1000$ and Trade only with 100$ in BTC/USDT in Long.

You open Long position of BTC/USDT with leverage(?).

If price increase, you will earn in USDT(even if you are trading in BTC you earn in USDT).

If price decrease you will loss in USDT also.(reminder even if you trade with 100$ you will loss more then 100$ if BTC/USDT keep decreasing)

In future trading you will loss more then what you actually invest in one trade so always use stop loss.

COIN-M Future:

COIN-M is type of future trading where you trade crypto future contracts in Crypto currency not in USDT(tether).

In simple word to tell you, you trade crypto future using Crypto currency as margin, your profit and loss both are paid in Crypto currency. Many traders use COIN-M to earn big because here you trade and earn BTC/ETH, but it’s also dangerous so use in wisely.

For Example:

You Deposit BTC in future COIN-M and trade with that in BTC/USD.

You Buy BTC/USD LONG position.

If BTC price increase you will earn money in BTC.

If BTC price decrease you will loss money in BTC.

In COIN-M future trading you will also loss more then what you actually invest in one trade, so always use stop loss here.

Quarterly Contract:

Quarterly Contract are a future contract that has expiry date, When the date expire it automatically close the trade, and settled at the time current price.

In simple word to tell you, The order you put will close automatically when the expiry time come even if you don’t intend to close it. it has time limit of trade that must has to follow, Quarterly Contract is for long term investor that has clear vision of future market.

Perpetual Contract:

Perpetual Contract are trading contract that has no expiry date you can open your trade/position as long as you want, if you have sufficient funds.

It’s not like Quarterly Contract where you have limited time( expiry date).

In simple word to tell you, If you want to trade BTC/USD and want to hold it for long time(more then 3 month) you can hold it in Perpetual Contract trading.

Almost Every traders Use Perpetual Future.

this all for now if you want to know what you need to do before starting trading then click here

And if you wanted to know about bainace, is is safe to use and it’s security feature then click here

If you want to know about risk management then click here.

If you want 10% fees discount in your binance account you can use this link https://www.binance.com/referral/earn-together/refer2earn-usdc/claim?hl=en&ref=GRO_28502_HLQT7&utm_source=default