Binance Futures to List BTC/USD ‘Inverse’ Perpetual Futures; Leveraged Up to 125x
Binance announces the launch of its Bitcoin perpetual coin margined futures contract expected on Tuesday, August 11, 2020, at 7 AM GMT. According to the published blog post, traders can leverage their positions on the BTC/USD coin margined contracts up to 125x, to increase their rewards.
Remember, a higher leverage position increases your risk by the same proportion; hence be careful while using leverage.
The statement obtained by BEG states the coin margined BTC/USD contracts will be listed on Binance Futures, the exchange’s derivatives wing. BTC/USD coin margined perpetual contracts are similar to standard crypto futures. Still, they do not have an expiration date, and the margin is set in BTC instead of the conventional fiat currency.
— Binance (@binance) August 10, 2020
Binance Futures’ BTC/USD coin margined contracts are the second in line to use BTC as the base currency following the recent launch of quarterly BTC/USD coin margined products. The exchange has launched the COIN- and USDT- margined products in a bid to promote the use of BTC and altcoins as the currency of settlement.
Changpeng “CZ” Zhao, CEO of Binance, states the ‘inverse’ futures contracts “helps strengthen the digital asset’s industry standing” as they allow long term crypto hodlers to invest with a long term view on the crypto. On the launch of these margined futures products, Aaron Gong, VP of Binance Futures said,
“[Binance] We are the only exchange that offers users flexible control of their margin balance by either spreading it across all their open positions or setting individual limits for each position they own (cross or isolate margin modes), as well as the ability to switch their margin modes at any time.”