By
Godfrey Benjamin
April 29th, 2024
To further enhance trading flexibility, Binance has also incorporated the Multi-Assets Mode for these new additions.
Binance has unveiled new additions to its trading offerings with the launch of three new USDC-margined perpetual contracts. These contracts will provide traders with leveraged exposure to cryptocurrencies such as Arbitrum (ARB), Neo (NEO), and Filecoin (FIL), utilizing USDC as collateral. They will be granted the opportunity to amplify their positions with leverage of up to 75 times their initial investment.
Gradual Launch Process and Leverage Information
The first contract, ARBUSDC Perpetual, based on the Arbitrum cryptocurrency, will go live on April 18, 2024, at 07:00 UTC, offering traders up to 50x leverage. Shortly after, at 07:15 UTC, the NEOUSDC will commence trading with the same maximum leverage of 50x. Lastly, the FILUSDC will be introduced at 07:30 UTC, granting traders the opportunity to amplify their positions with a leverage of up to 75x. This gradual launching approach allows traders to plan their strategies efficiently and manage their risk exposure across multiple assets, and even more, it allows users of the platform to become familiar with the new contracts.
Perpetual contracts are a unique type of derivative product that enables traders to speculate on the future price movements of an underlying asset without the obligation of physical delivery. Unlike traditional futures contracts, it does not have an expiration date, eliminating the need for rollover or settlement upon expiration. This feature provides traders with greater flexibility and allows them to maintain their positions indefinitely, catering to both long-term and short-term trading strategies. Furthermore, the new trading instruments will be available for trading 24/7, offering traders around-the-clock opportunities to capitalize on market movements.
Binance Futures has designed these new contracts to cater to the diverse needs of its user base while implementing measures to mitigate the inherent risks associated with leveraged trading. The feature includes a capped funding rate of 0.45%, ensuring a controlled cost of holding positions. Additionally, the funding fee settlement frequency is set to occur every eight hours, providing traders with regular updates on their positions and enabling them to make informed decisions.
Multi-Assets Mode and Fee Incentives
To further enhance trading flexibility, the exchange has also incorporated the Multi-Assets Mode for these new additions. This feature will allow traders to utilize various margin assets, subject to applicable haircuts, enabling them to trade the ARB, NEO, and FIL using margin assets like Bitcoin (BTC), in addition to USDC. This versatility caters to traders with diverse portfolio compositions and risk appetites.
More so, in fostering a favorable trading environment, the exchange has put in place zero maker fees and a reduced taker fee of 0.017% for all trades on USDC-margined futures contracts since April 3. This fee structure aims to incentivize market participation and liquidity provision, benefiting traders across various strategies.
However, it is important to note that Binance Futures reserves the right to adjust the specifications of these futures contracts based on prevailing market risk conditions. This measure ensures that the exchange can respond promptly to market dynamics and maintain a resilient trading environment for all participants.