Binance, the world’s largest cryptocurrency exchange by trading volume, is launching a perpetual futures contract with up to 50x leverage. The contract will be traded on the Binance Futures platform against Tether (USDT), a dollar-pegged stablecoin.
Binance first launched its futures platform in September 2019 with Bitcoin (BTC) as the underlying asset. Since then, the platform has gradually added more assets and now supports 12 digital currencies including Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Binance Futures currently has a daily trading volume of over $1 billion.
The new perpetual contract will be available for trading with up to 50x leverage. It will be denominated in USDT and have a minimum price fluctuation of 0.
001%. The contract will be settled daily at 00:00 UTC and have no expiry date.
Both long and short positions will be charged a funding fee every 8 hours. The fee will be paid to the opposite side of the trade and will vary depending on the interest rate differential between USDT and other assets.
For example, if USDT is borrowing at 5% per year and ETH is borrowing at 10% per year, then long ETH/USDT traders will pay short ETH/USDT traders a 2.5% funding fee every 8 hours.
NOTE: Warning: Trading on Binance Futures Perpetual Contracts carries a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before trading. The high degree of leverage associated with trading on Binance Futures Perpetual Contracts can work against you as well as for you. You should be aware of all the risks associated with trading on these contracts, and if necessary seek independent advice.
The launch of the perpetual contract follows the success of Binance’s quarterly futures contracts which were launched in July 2019. Quarterly futures contracts are similar to perpetual contracts but have an expiry date.
They are often used by traders to hedge against price movements in the underlying asset or take advantage of arbitrage opportunities.
Binance CEO Changpeng Zhao said that the launch of perpetual futures contracts will make it easier for traders to take advantage of price movements in digital currencies. “Traders can now use leverage to trade their favorite digital currency pairs around the clock without having to worry about expiration dates,” he said.
The launch of Binance’s perpetual futures contract comes amid a surge in demand for cryptocurrency derivatives products. According to a report by Arcane Research, the total trading volume of cryptocurrency derivatives hit a record $1 trillion in December 2020.
The report found that Bitcoin futures trading volume grew from $24 billion in January 2020 to $290 billion by December 2020.
The launch of Binance’s perpetual contract also comes as other major exchanges are launching similar products. In November 2020, OKEx launched a perpetual swap product with up to 100x leverage while Huobi Global launched a similar product with up to 50x leverage in December 2020.
BitMEX, the largest cryptocurrency derivatives exchange by trading volume, also offers a perpetual contract with up to 100x leverage.
Are Binance Futures Perpetual? Yes, Binance Futures offers a perpetual contract with up to 50x leverage which is denominated in USDT and have a minimum price fluctuation of 0.001%. Thecontract will be settled daily at 00:00 UTC and have no expiry date.
10 Related Question Answers Found
Binance Perpetual Futures is a new type of contract that allows traders to trade with leverage on a variety of different cryptocurrencies. This type of contract is similar to a traditional futures contract, but with some key differences. One key difference is that there is no expiry date on a Binance Perpetual Futures contract.
It’s hard to know for sure how long you can hold Binance Futures Perpetual because the conditions of the market are constantly changing. However, if you’re planning to hold onto your investment for the long term, then you should be aware of some important things that will affect your ability to do so. First of all, you need to be aware of the leverage that’s available on Binance Futures Perpetual.
Perpetual trading on Binance is a type of trading that allows traders to trade without expiry dates. This type of trading is beneficial for those who want to trade frequently and those who don’t want to be tied down to a specific expiry date. With perpetual trading, traders can choose their own trading hours and can close their positions at any time.
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Binance’s mission is to accelerate the development of the blockchain ecosystem and to promote innovation within the industry. The Binance ecosystem is comprised of several products and services that are all designed to work together to create a seamless experience for users.
Binance Futures is a cryptocurrency derivatives trading platform launched by Binance in September 2019. The platform allows users to trade digital assets with leverage and take both long and short positions. Binance Futures uses the same engine as Binance Spot, which is powered by the Binance Chain blockchain.
Binance Coin (BNB) is a cryptocurrency token issued by Binance.com. BNB runs on the Ethereum blockchain and is used to pay fees on the Binance exchange. BNB can also be used to purchase goods and services.
Perpetual in Binance refers to the process of buying and selling cryptocurrencies on the Binance exchange platform. This can be done through the use of the perpetual contract feature, which allows users to trade cryptocurrency pairs without having to worry about the expiry date of their contract. The perpetual contract feature on Binance is one of the most popular features on the exchange, as it allows for a high degree of flexibility when it comes to trading.
Futures on Binance are a type of derivative product that allows traders to speculate on the future price of certain assets. For example, a trader could buy a futures contract on Bitcoin, betting that the price of Bitcoin will increase in the future. If the price of Bitcoin does indeed increase, the trader will make a profit.
Binance Futures is now available in the USA! This exciting new development will allow US-based traders to take advantage of the many benefits of futures trading on the Binance platform. Futures trading is a popular way to trade financial assets, as it allows traders to speculate on the future price of an asset without having to own the underlying asset.
Multiverse coin is a new cryptocurrency that was created in 2017. The coin is based on the Ethereum blockchain and uses the ERC20 token standard. The token is meant to be used as a utility token on the Multiverse Platform, which is a gaming platform that allows players to use different in-game items and currencies across different games.
