Binance continues to build the world’s largest cryptocurrency ecosystem. And it is that, 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 platform of Binance Futures.
Future contracts on Bitcoin
No financial market is complete until there are future contracts in it. And it is that, these instruments are the ones that allow any asset to be traded in the market. Allowing not only long investments, that is, waiting for the price of the asset to increase. Also short, when we bet because the price of the asset is going to fall.
This is so because of the very operation of future contracts. Well, they consist of a commitment made between two parties for the purchase and sale of an asset on a date in the future at a specific price. Binance owns Binance Futures to be the platform that brings the parties to the contract together.
In addition, if the price indicated by the contract is higher than that of the asset in the spot market when the time comes to execute the transaction, whoever acquires the asset will lose money by buying it at a price higher than the market price. While if the price is lower than the market, who will lose will be the seller of the asset, who could have obtained a greater profit in the spot market.
Of course, today most of these operations fail to be executed, and future contracts end up being representations of these assets. Only transferring money when it comes time to execute the contract, instead of the asset itself.
Binance’s new options
In the case of the crypto market, futures contracts are also an essential part of its operation. And large exchanges like Binance are the world’s leading providers of Bitcoin futures contracts. Offering a secure platform to carry out operations with them, as well as different investment options adapted to the needs of each investor.
That includes Binance’s newly launched perpetual Bitcoin futures contracts. Which come to complement the perpetual futures contracts on USDT launched a year ago, and that today represent more than 37% of the volume of operations on the Binance Futures platform. Because, unlike a quarterly futures 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 dividing it among all their open positions or establishing individual limits for each position they hold (…) as well as the possibility of changing their margin modes at any time. moment“. He commented on the advantages of these perpetual futures contracts Aaron Gong, Vice President of Binance Futures.
Finally, Binance has also ensured that these new perpetual futures contracts on Bitcoin will have a leverage of up to x125. Which means that traders will have plenty of margin to trade and make big profits on Binance Futures.