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Binance Futures Will Launch BNB/USDT Perpetual Contract to Allow Risky 50x Leverage

Summary:
Binance is implementing the new BNB/USDT perpetual contract feature. The trading launch is scheduled for 10.02.2020, 08:00 AM (UTC).Binance will leave the traders with no chance of performing manipulations. In the first 15 minutes of the new contract trades, a 1% pricing limit will focus on the marked price. Since now, BNB holdings are updating themselves according to the new Futures account calculation scheme. Its the sum of the Binance Coin balance’s hourly snapshots of Futures balances, divided by 24 hours.To calculate Futures account net balance of BNB tokens, you’ll need to add BNB-USDT position to the Futures balance. Longs will represent the total value of perpetual contracts settled on the BNB-USDT market. The negative BNB balance will offset the total daily average BNB balance.

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Binance is implementing the new BNB/USDT perpetual contract feature. The trading launch is scheduled for 10.02.2020, 08:00 AM (UTC).

Binance will leave the traders with no chance of performing manipulations. In the first 15 minutes of the new contract trades, a 1% pricing limit will focus on the marked price. Since now, BNB holdings are updating themselves according to the new Futures account calculation scheme. Its the sum of the Binance Coin balance’s hourly snapshots of Futures balances, divided by 24 hours.

To calculate Futures account net balance of BNB tokens, you’ll need to add BNB-USDT position to the Futures balance. Longs will represent the total value of perpetual contracts settled on the BNB-USDT market. The negative BNB balance will offset the total daily average BNB balance. This balance appears from the data of your sub-accounts, spot accounts, margin and fiat accounts and so on.

Under the official Twitter announcement by the exchange, the reaction is overly positive. Despite the rare usual trolls, people are happy to see the opportunity to ‘lose money 50x faster’ and scream ‘finally!’.

According to the official release by Binance, the leverage usage is for professionals:

“Futures trading is a highly risky endeavor, with the potential for both great profits and significant losses. Please be aware that in the event of extreme price movement, there is a chance that all margin balance in your futures wallet may be liquidated.”

What Is Perpetual Contract?

If you have such a question, it will be sensible not to try out this feature right now. It will be better to study all the sides of this question beforehand in order not to face serious financial losses. Perpetual contracts, unlike the classic futures contract, don’t have the expiry date. And they also have no settlement.

The player holds the position for as long as he wants. However, the trades are based on the Index Price of the asset. Which in turn consists of the relative trading volume and the average spot market price. While the classic futures are having volatile prices, the perpetual market is often very close to the spot market. However, the biggest difference is still in the empty settlement date of the perpetual contracts.

Altcoins, Binance News, Bitcoin (BTC), Blockchain News, Cryptocurrency News
Jeff Fawkes
Author: Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

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