Connect with us

News

Binance to roll-out BNB/USDT perpetual contracts with 50x leverage

Rakshitha Narasimhan

Published

on

Source: Unsplash

Malta-based cryptocurrency exchange Binance has announced that it is all set to roll out perpetual contracts for its native token, Binance Coin [BNB]. The BNB/USDT perpetual contracts are slated to go live on 10 February at 8:00 AM [UTC].

Binance also noted that users on its platform would be able to choose between 1-50x leverage. Binance Futures now has a total of 15 perpetual contracts on offer. In order to prevent market manipulation, the exchange is implementing a pricing limit of ±1% on the market price within the first 15 minutes of trading starting.

Additionally, the exchange revealed that the Net BNB Balance in Futures Account would now be equal to the total BNB Balance in Futures Account, along with the BNB/USDT position. The firm also noted that a negative net BNB balance in Futures Accounts would offset the users’ total daily average BNB balance, which will be calculated from average BNB balances held in Spot Accounts, Margin Accounts, Sub-Accounts, Binance Lending Products, and Binance Fiat Accounts.

The official announcement stated,

“Starting from 2020/02/11 0:00 AM (UTC), Binance will also update the calculation method of daily BNB holdings for Futures accounts to be: the sum of the hourly snapshots of Net BNB balance in a Binance Futures Account each day divided by 24 (hours).”

This news comes a day after Binance announced that it will remove and cease the trading of BTG/ETH, CND/BNB, MCO/BNB, YOYO/ETH, YOYO/BNB pairs.

Interestingly, the perpetual contracts market has recorded a drastic increase on Binance’s platform lately, with a recent research study by Binance backing this statement. The study showed that Binance Futures projected a staggering 85% month-on-month increase, while also recording a daily average of $1.7 billion contracts traded, since the start of January.

A Psychology and Journalism graduate, Rakshitha focuses on UK and Indian markets. As a crypto-journalist, her interests lie in blockchain technology adoption across emerging economies.