Binance offers two futures trading modes: USDT-margined and Coin-margined. Understanding their differences helps you choose the right mode. Both modes are available after registering on Binance.
USDT-Margined Futures
USDT-margined futures use USDT or USDC as the margin and settlement currency. This is the most commonly used mode, featuring:
- Profit and loss calculated in USDT, intuitive and easy to understand
- Margin is in stablecoins, so its value doesn't fluctuate
- The widest selection of trading pairs
- Suitable for most users
Coin-Margined Futures
Coin-margined futures use the cryptocurrency itself (e.g., BTC, ETH) as margin and settlement currency. Features include:
- Profit and loss calculated in the corresponding cryptocurrency
- Suitable for long-term holders who want to increase their positions
- If the coin price rises, the margin value also increases
- Fewer available trading pairs
Which One to Choose
Beginners should start with USDT-margined futures. USDT as margin provides stable value with clear profit/loss calculations, eliminating concerns about margin price fluctuations. Once you have a deeper understanding of the market, try Coin-margined futures to optimize your strategy.
How to Switch
You can switch between USDT-margined and Coin-margined modes at the top of the Binance futures trading interface. The two modes use different wallets, so funds need to be transferred separately.
Delivery vs. Perpetual Contracts
Each mode is further divided into Perpetual and Delivery contracts. Perpetual contracts have no expiration date and are suitable for flexible trading. Delivery contracts have fixed expiry dates (e.g., quarterly) and settle automatically at expiration. Beginners are recommended to use Perpetual contracts.
Download the Binance APP to experience the full futures trading features.