Going long means you're betting on a price increase; going short means you're betting on a drop. This is the biggest difference between futures and spot trading—you can profit not only when prices rise, but also when they fall. The catch is that you need to get the direction right, or losses pile up much faster than in spot.
This article skips the theory and walks you through the actual steps on Binance.
Before You Start
1. Register and Enable Futures
If you don't have a Binance account yet, sign up through the Binance website. After registering, complete identity verification in your profile.
Then navigate to the futures trading page. On your first visit, the system will ask you to take a short quiz (about 5 multiple-choice questions). Pass it and futures trading is unlocked.
Mobile users can download the Binance App and complete all these steps within the app.
2. Transfer Funds to Your Futures Account
Futures trading uses a separate "Futures Account." You need to transfer USDT from your spot account first.
Steps: Assets → Transfer → From "Spot Account" to "USDT-M Futures Account" → Enter amount → Confirm
It's best to start by transferring only a small portion. For example, if you have 1,000 USDT total, transfer 100–200 USDT to practice with.
3. Set Your Leverage
Open the futures trading page (e.g., BTCUSDT perpetual) and find the leverage button.
Beginners should set it to 3–5x. Tap the leverage button, drag the slider or type a number, and confirm.
Going Long (Bullish)
Going long means you expect BTC's price to rise. If it does, you profit; if it drops, you lose.
Practical Example
Setup: BTC is currently at 70,000 USDT. You're bullish and want to go long. You have 200 USDT in your account with leverage set to 5x.
Step 1: Choose direction and order type
On the lower half of the trading page, you'll see a green "Buy/Long" button and a red "Sell/Short" button. We're going long, so work with the green side.
Order types:
- Market order: Opens immediately at the current price (recommended for beginners)
- Limit order: Sets a specific price—the position only opens when that price is reached
Step 2: Enter position size
You can enter how much USDT to use as margin or how much BTC to open.
For example, if you want to use 100 USDT as margin, at 5x leverage your position value is 100 × 5 = 500 USDT, roughly 0.00714 BTC.
You can also use the percentage slider at the bottom—drag it to 50% to use half your available margin.
Step 3: Tap "Buy/Long"
After verifying the details, tap the green button. A confirmation popup shows your entry price, quantity, margin, and other details. Confirm to place the order.
Step 4: Check your position
Once the position is open, you can view it under the "Positions" tab at the bottom of the page:
- Entry price: 70,000
- Position size: 0.00714 BTC
- Margin: 100 USDT
- Liquidation price: ~56,000 USDT (at 5x leverage)
- Unrealized PnL: Updates in real time as the price moves
If BTC rises to 71,000 (~1.4% increase), your profit is 500 × 1.4% = 7 USDT. That's a 7% return on your 100 USDT margin.
Step 5: Close the position (sell)
When you've made enough or want to cut losses, close the position.
In the position details, tap "Close Position." Choose market close (sell immediately at the current price) or limit close (set a price and wait).
Market close is fastest—the position closes within seconds and PnL is settled.
Going Short (Bearish)
Going short means you expect BTC's price to drop. If it does, you profit; if it rises, you lose.
Practical Example
Setup: BTC is currently at 70,000 USDT. You expect a drop and want to go short.
Step 1: Choose the short direction
Find the red "Sell/Short" button on the trading page.
Step 2: Enter position size
Same as going long—enter your margin amount or position quantity.
Step 3: Tap "Sell/Short"
Confirm and place the order.
Step 4: Check your position
In the position details, short positions are labeled with a "Short" direction indicator.
If BTC drops to 69,000 (~1.4% decline), the position value has decreased by 1.4%—but since you're short, you've profited. At 5x leverage, that's about 7 USDT.
Step 5: Close the position
Same as going long—tap "Close Position." Closing a short is essentially "buying back"—you buy back at a lower price and pocket the difference.
How to Set Stop-Loss and Take-Profit
This is a step you absolutely must not skip.
Setting them when opening a position
On the order panel, check the "TP/SL" (Take Profit/Stop Loss) box to set both prices at the same time as your entry.
Long example:
- Entry: 70,000
- Take profit: 72,000 (auto-close at 72,000 to lock in gains)
- Stop loss: 69,000 (auto-close at 69,000 to limit losses)
Short example:
- Entry: 70,000
- Take profit: 68,000 (auto-close at 68,000 to lock in gains)
- Stop loss: 71,000 (auto-close at 71,000 to limit losses)
Adding them after opening
If you forgot to set TP/SL when opening, find your position in the positions list and tap the TP/SL icon on the right to add them.
Strong recommendation: Set a stop-loss on every single futures trade. Trading futures without a stop-loss is like driving without a seatbelt—it seems fine most of the time, but when something goes wrong, it goes very wrong.
PnL Calculations for Long and Short
Understanding the math helps you plan your positions better.
Long PnL = Position Value × (Close Price − Entry Price) ÷ Entry Price
Example: 5x leverage, 100 USDT margin, entry at 70,000, close at 72,000 PnL = 500 × (72,000 − 70,000) ÷ 70,000 = 500 × 2.86% = 14.3 USDT
Short PnL = Position Value × (Entry Price − Close Price) ÷ Entry Price
Example: 5x leverage, 100 USDT margin, entry at 70,000, close at 68,000 PnL = 500 × (70,000 − 68,000) ÷ 70,000 = 500 × 2.86% = 14.3 USDT
Don't forget to subtract fees (one for opening, one for closing). At 5x leverage with a 500 USDT position and 0.05% taker fee: Opening fee = 500 × 0.05% = 0.25 USDT Closing fee = 500 × 0.05% = 0.25 USDT Total fees = 0.5 USDT
Actual profit = 14.3 − 0.5 = 13.8 USDT
Common Beginner Mistakes
Mistake 1: No stop-loss This is the deadliest mistake. Many people think "it'll bounce back eventually," only to watch losses snowball until they're liquidated.
Mistake 2: Too much leverage Jumping straight to 20x or 50x—a tiny fluctuation wipes you out. Start with 3–5x.
Mistake 3: Chasing momentum Going long just because it's rising, or shorting just because it's falling, and switching constantly. The odds of getting whipsawed are enormous.
Mistake 4: Constantly flipping direction Losing on a long, flipping to a short, losing again, flipping back to long. Each time, you enter at the worst possible moment and pay double the fees.
Mistake 5: Adding to winners recklessly and refusing to cut losers It should be the opposite: cut losses according to plan, and take profits according to plan. Don't let greed and fear dictate your trades.
Summary
The mechanics of going long and short aren't complicated—pick a direction, size your position, set a stop-loss, wait for your opportunity, and close at the right time. The real challenge is calling the direction and managing risk.
Practice with paper trading or tiny positions (say, 10–20 USDT margin) a few times first. Get comfortable with the entire workflow before committing more capital. Every trade should have a clear entry thesis and exit plan—never trade on gut feeling alone.