Binance moves forward in the construction of the largest ecosystem of cryptocurrencies in the world. And is that, from the beginning of the crisis of the Coronavirus, the company founded by Changpeng Zhao seems to have taken even more impetus to launch new products and services to its users. On this occasion, Binance launches new futures contracts perpetual for the operations of their users within the platform of Binance Futures.
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Futures contracts on Bitcoin
No financial market is complete until there are future contracts on the same. And is that, are these instruments that allows any asset to be transected in the market. Allowing not only investment in long, that is to say, expecting that the price of the asset will increase. Also in short, when we bet because the price of the asset will go down.
This is by the operation of the contracts in the future. Therefore, the same consisting of a commitment made between two parties for the purchase-sale of an asset at a set date in the future at a certain price. Binance has to Binance Futures to be the platform board to the parties to the contract.
In addition, if the stated price for the contract is higher than it has the asset in the spot market when the time comes to execute the transaction, who acquires the asset will lose money to buy it at a price higher than the market. While if the price is below market, who will lose will be the seller of the asset, who could have obtained a larger gain in the spot market.
Of course, today most of these operations do not come to run, and future contracts end up being representations of these assets. Transferring only money when the time comes to execute the contract, in place of the active as such.
Binance Futures is one of the best platforms available for the purchase and sale of futures contracts on Bitcoin. Source: Binance Futures
The new options of Binance
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 at a global level. Offering a secure platform to perform operations with them, as well as different investment options, tailored to the needs of each investor.
This includes the newly launched futures contracts perpetual on Bitcoin of Binance. Which come to complement the futures contracts perpetual on USDT launched a year ago, and that today represent more than 37% of the volume of trades on the platform Binance Futures. Thanks to the fact that, unlike a future contract on a quarterly, these contracts do not have a maturity date of default.
“We are the only exchange that offers the user a flexible control of your balance for margin, either by distributing it between all of your open positions, or by setting individual limits for each position held by them (…) as well as the possibility of changing their modes of margin at any time.“ Commented on the benefits of these futures contracts perpetual Aaron Gong, Vice president of Binance Futures.
Finally, Binance has also ensured that these new futures contracts perpetual on Bitcoin will have a leverage of up to x125. Which means that traders will have margin to spare to perform its operations and to achieve great gains in Binance Futures.