Zcash Joins Binance Futures Platform With New Perpetual Contract

The futures platform of Binance is launching a Zcash (ZEC)–Tether (USDT) perpetual contract with a maximum leverage of up to 50x. Zcash joins binance futures platform and the analysts expect the price to go up so let’s read more in the Zcash news today.

An announcement from the exchange on February the 4^th disclosed that trading for the new ZEC/USDT contract will go live at 8.00 a.m. on February the 5^th. In an effort to prevent manipulation of the market, Binance states it made this choice to set a pricing limit of ±1% on the mark price within the first 15 minutes after the start of the trading.

As reported, when the Binance Futures platform launched, making an offer of maximum leverage of as high as 125x, the exchange stressed it was giving traders access to an insurance fund that would supposedly help to limit the odds of auto-deleverage. Changping Zhao the CEO of Binance, said that Zcash joins the platform of the future, and this has brought an enlarged institutional involvement, with professional traders leading the need to introduce ways to support very fast trades.

Differently from a traditional futures contract, there is the absence of any expiration or settlement date for perpetual contracts. Binance explains that the dependence on determined settlement time for a conventional futures contract, price discrepancies between the spot and futures markets can potentially be enlarged. Contrasting this:

  “The perpetual contract is an attempt to take advantage of a futures contract […] while mimicking the behavior of the spot market in order to reduce the price gap between the futures price and the mark price. This is a marked improvement compared to the traditional futures contract, which can have prolonged or even permanent differences versus the spot price.”

As reported by DC Forecasts on a past occasion, Binance recently hired an executive from one of its biggest competitors from the exchange field, Huobi. The former head of Europe and the Americas at Huobi, Josh Goodbody, is now the new director of European and Latin American Growth and institutional business for Binance.

Beyond its futures platform, Binance has been working on worldwide expansion and is diversifying available cryptocurrency investment options. Its goal is to introduce staking rewards on its the United States-based marketplace this month, which comes after the launch of a dedicated staking platform of the exchange company in the second half of September the previous year.