Binance announced today that its futures trading platform – Binance Futures – will support BTC/USDT contracts with a margin of up to 125x.
As reported, Binance Futures will allow highly sophisticated trading by combining a risk engine and a settlement model.
It is a competitive advantage offered by the world’s leading crypto exchange on its futures which uniquely uses two settings: ‘Tax Bracket‘ to calculate the leverage that allows a continuous margin without jumps or glitches and ‘Mark Prices‘ to prevent unnecessary settlement and combat market manipulation.
In this way, platform users will be able to select any leverage on futures from 125x to 2x and larger positions will adapt to the lowest allowed leverage. This means that by depositing 100USD with a 125x leverage on Binance Futures, the user will be able to hold 12,500USD in BTC.
Changpeng Zhao, CEO of Binance, said:
“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. And they are flocking to Binance Futures,” said CZ (Changpeng Zhao), CEO of Binance. “Further, the performance of the Binance Futures systems far outstrips many other platforms in the market, giving users a smooth trading experience. The market has been demanding a product with superior stability and performance; now we provide one.”
Not only that, thanks to the risk management system, Binance Futures users are insured with an ‘Insurance Fund’ which helps to limit the possible self-reduction of leverage.
Aaron Gong, the director of Binance Futures, said:
“We have seen increased activities from these traders transferring in and out from spot to futures during volatile periods. The liquid and easy-to-use spot market, as well as the simple process to transfer capital between spot and futures, provides traders with the most efficient manner to trade both markets,” said Aaron Gong, Director of Binance Futures. “We’ve seen continued improvement in our volumes and market share, and we expect to see further gains in the coming months. In Q4, we will roll out several new major features that address community feedback, as well as several surprises of our own.”
Recently, a Binance report was also published describing how the 24-hour BTC volume for Binance Futures exceeded the BTC volume on the Binance spot market.
A market response that enhances the strong interest of futures platform users who, in its first month alone, already have 34,215 registered traders.