Binance announced the introduction of three new US Dollar Coin (USDC) margined perpetual contracts for traders: Arbitrum (ARB), Neo (NEO), and Filecoin (FIL). By using USDC as collateral, traders can gain leveraged access to these cryptocurrencies, with a maximum leverage of 75 times their initial investment.
Gradual Launch Process and Leverage Information
Beginning on April 18, 2024 at 07:00 UTC, the initial contract, ARBUSDC Perpetual, which is linked to Arbitrum cryptocurrency and provides up to 50x leverage, will become accessible for trading. Following a brief pause, NEOUSDC will start trading at 07:15 UTC with an identical maximum leverage. Lastly, FILUSDC will be presented to traders at 07:30 UTC, offering a more amplified leverage of up to 75x. By implementing this phased introduction, traders can effectively plan their strategies and control risk exposure across various assets, while users of the platform have the opportunity to acclimate themselves to the new contracts.
Perpetual contracts are a special kind of financial derivative that lets investors bet on the price direction of an underlying asset without requiring actual delivery. Different from regular futures contracts, these contracts don’t have an expiration date and thus, there’s no need for periodic rollovers or settlements upon expiration. This feature brings more convenience for traders as they can keep their positions open-ended, supporting both long-term and short-term trading approaches. Additionally, these new financial tools will be accessible for trading non-stop, creating opportunities for market participants to act on price fluctuations around the clock.
Binance Futures has created new contracts tailored to its user community while integrating safeguards against the risks inherent in leveraged trading. A key aspect is a maximum funding rate of 0.45%, keeping position costs manageable. Furthermore, the funding fee settlement occurs every eight hours, providing frequent updates on positions and allowing traders to make well-informed decisions.
Multi-Assets Mode and Fee Incentives
To increase trading options, the exchange has introduced Multi-Assets Mode for new instruments like ARB, NEO, and FIL. This function lets traders use different margin assets, such as Bitcoin (BTC) and USDC, to trade these assets with applicable margin requirements. This flexibility benefits traders with various investment portfolios and risk preferences.
To enhance a beneficial trading experience, the exchange has implemented no charges for makers and a lower fee of 0.017% for takers on USDC-margined futures contracts since April 3. This fee setup intends to attract more market engagement and liquidity supply, ultimately profiting traders with diverse strategies.
Binance Futures has the ability to change the contract specifications for these futures at its discretion, depending on the current market risk conditions. This flexibility allows the exchange to react quickly to market changes and keep a robust trading platform for all users.
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2024-04-16 13:12