Binance Follows BitMEX, Launches BTC-Collateralized Futures Contract

Binance follows BitMEX in launching a Bitcoin-collateralized futures contract with a 125x leverage as we are reading more in the upcoming Binance news.

Binance managed to establish itself as one of the most trusted exchanges in the field. One of the reasons for this was the fact that the company doesn’t seem to be stopping in the creation of new products. From regular listings of new cryptocurrencies to staking, building new features as well, it seems that there’s always something that is preparing at Binance. The latest addition is something that BitMEX already is known for which is the Bitcoin-collateralized futures contract with high leverage.

Binance Futures, the leveraged platform of Binance announced the launch of the BTC/USD coin-M perpetual contract. The trading started on August 11^th, the interesting thing about it is the contract uses Bitcoin as collateral instead of USDT like other contracts that exist on the platform. The available leverage that levels how users can trade with up to 125x leverage is extremely high. The contract is similar to the one of BitMEX which uses the same structure.

The trading interface of the new contract is the same as the other futures contracts on Binance but instead of inputting the desired USDT amount, users can add contracts where one can equal 100 USD. As was explained previously, there’s a huge difference between perpetual and regular contracts. The regular ones expire at a certain point in time while perpetual contracts don’t have a fixed expiration date so the traders can open and close then at every time. Binance Futures launched a leaderboard where the traders can share their strategies, positions, and overall earnings so the users can follow them and mirror the portfolio if the participants want to share it.

Coin-margined perpetual futures contracts priced in BTC are now available on Binance and unlike traditional futures contracts, the buyers and the sellers are obligated to execute a deal on the date regardless of the current conditions on the market since perpetual ones don’t have an expiration date. This means that the traders can hold their positions forever. Binance’s latest derivatives are inversed which means that they are margined and priced in Bitcoin and other cryptocurrencies instead of fiat. Margins are a form of loan borrowed from one brokerage and used to purchase various assets. The loans are denominated in the US dollar or other traditional currencies.