Binance Futures Launches BTC-Margined Perpetual Futures Contracts

Cryptocurrency exchange giant Binance is today launching Perpetual Futures contracts margined with Bitcoin with a leverage of up to 125x. According to a press release that was shared with Finance Magnates, the contracts are to be listed on Binance Futures, Binance’s cryptocurrency derivatives exchange arm.

The newest offering joins a number of other derivatives products that Binance currently offers, including its USDT-margined perpetual futures. According to Binance, its “perpetual futures consistently owns the largest trading volume, with recent monthly market share averaging 37%.”

The new BTC-managed perpetual futures product marks the second futures line to be margined and priced in a cryptocurrency. This follows Binance’s recent announcement of a new method of categorization that highlights whether a contract is margined with a cryptocurrency like BTC, or a stablecoin such as USDT.

Users may have the potential to improve their margin efficiencies.

Changpeng Zhao commented upon the categorization announcement that “unlike with traditional markets, ‘inverse’ cryptocurrency contracts are intuitive because of the nature of digital assets. There are also traders who use coin-margined futures to hold cryptocurrencies for the longer term,” he added. “We should embrace these facts, as it helps strengthen our industry’s standing.”

Reprinted from financemagnates , the copyrights all reserved by the original author.