Binance launches new perpetual futures contracts
Binance continues to build the world’s largest cryptosystem. Since the beginning of the Coronavirus crisis, the company founded by Changpeng Zhao seems to have taken even more momentum to launch new products and services for its users. On this occasion, Binance launches new perpetual future contracts for the operations of its users within the Binance Futures platform.
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The Bitcoin futures contracts
No financial market is complete until there are future contracts in it. It is these instruments that allow any asset to be traded in the market. Allowing not only investments in long, that is, waiting for the price of the asset to increase. Also in short, when we bet because the price of the asset will go down.
This is true for the very functioning of future contracts. For, they consist of a commitment made between two parties to buy and sell an asset at a date in the future at a given price. Binance owns Binance Futures to be the platform that brings together the parties to the contract.
In addition, if the price indicated by the contract is higher than the asset’s price in the spot market when the transaction is executed, the party acquiring the asset will lose money by buying it at a higher price than the market. If the price is lower than the market price, the seller of the asset will lose, as he could have made a higher profit in the spot market.
Of course, most of these transactions are not executed today, and the future contracts end up being representations of these assets. Only money is transferred when it is time to execute the contract, instead of the asset as such.
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The new Binance options
In the case of the crypto market, future contracts are also an essential part of its operation. And large exchanges such as Binance are the main providers of future contracts on Bitcoin worldwide. They offer a secure platform to trade with them, as well as different investment options adapted to the needs of each investor.
That includes the recently launched Binance Bitcoin Storm Perpetual Futures Contracts. These come to complement the perpetual USDT futures contracts launched a year ago, and which today represent over 37% of the trading volume on the Binance Futures platform. This is because, unlike a quarterly future contract, these contracts do not have a predetermined expiration date.
„We are the only exchange that offers users flexible control of their margin balance, either by spreading it across all their open positions or by setting individual limits for each position they hold (…) as well as the ability to change their margin modes at any time“. Commenting on the benefits of these perpetual futures contracts, Aaron Gong, Vice President of Binance Futures, said
Finally, Binance has also assured that these new perpetual futures contracts on Bitcoin will have a leverage of up to x125. This means that traders will have plenty of margin to make their trades and earn big profits at Binance Futures.