Binance futures come in USDT-margined and coin-margined varieties. Most users should use USDT-margined; coin-margined suits experienced traders with specific needs.
To trade futures, sign up for Binance and complete verification. The Binance App offers smoother futures trading.
USDT-Margined Futures
Uses USDT/USDC as margin and settlement currency. Regardless of which coin's futures you trade, everything is in stablecoins. Profit of $500 goes directly as USDT.
Coin-Margined Futures
Uses the corresponding cryptocurrency as margin. BTC futures require BTC as margin; profits and losses are also in BTC.
Key Differences
| Aspect | USDT-Margined | Coin-Margined |
|---|---|---|
| Margin | USDT/USDC | Corresponding crypto |
| P&L Settlement | In USDT | In the crypto |
| Trading Pairs | 200+ | Fewer |
| P&L Calculation | Linear, intuitive | Non-linear, complex |
USDT-Margined Advantages
- Simple math: P&L directly in USD value
- Universal margin: One stablecoin for all pairs
- More pairs: Small-cap futures mostly only available here
- Stable collateral: Margin doesn't depreciate with market drops
Coin-Margined Advantages
- For long-term holders: Use BTC you already hold as margin, earning on top of holdings
- Double gains: Profits in BTC that may also appreciate
- Miner hedging: Miners can short using their BTC holdings without buying USDT
Risk Differences
USDT-margined risk is straightforward — stable margin, linear P&L.
Coin-margined risk is more complex — margin itself fluctuates. If you're long BTC and it crashes, both your position loses and your BTC margin devalues. Double impact for losses (and gains).
Decision Framework
Choose USDT-margined: Futures beginner, funds mainly in USDT, want simple P&L, want to trade multiple coins.
Choose coin-margined: Long-term holder not planning to sell, want extra yield on holdings, miner needing hedging, understand non-linear risk.
You can use both simultaneously — Binance keeps them in separate accounts. But beginners should focus on USDT-margined first, gaining experience before exploring coin-margined.