One of the largest futures trading platforms in the world, Binance Futures, has announced the introduction of TRX/USDT perpetual contract that will go live starting Jan.15.
According to a press statement released by Binance, traders will have a chance to choose from 1 up to 75x leverage. This means that a trader who opts for the highest leverage will have a chance to hold 7,500 USDT equivalent of TRX by only depositing 100 USDT which will act as collateral.
Binance has been looking at ways to attract more customers for its futures products and in October last year increased in leverage to 125x. Changpeng Zhao, Binance CEO, has explained that high-leveraged trading pairs are on high demand especially among institutional investors, U-Today reports. CZ explained,
“Binance Futures offers a fast and stable platform that is designed by traders for traders. We have seen an increase in institutional participation in trading, and these professional traders seek out the most efficient ways to trade very quickly, both in terms of cost and performance.”
Binance Futures has been aggressive in efforts to increase its market share when it comes to derivatives and in the recent past has introduced perpetual futures contracts for different cryptos including Litecoin as well as XRP.
Although the futures exchange has risen in terms of popularity, derivatives traders have been asked to be cautious as the derivatives market is highly risky and can easily lose their funds when their trades don't work out.
Binance stated that it has a price limit of ±1% on the mark price to prevent market manipulation. However, this limitation will only be implemented for just 15 minutes after trading kicks-off at exactly 08:00 AM (UTC).