Binance Futures stands as the futures trading platform of Binance, one of the largest cryptocurrency exchanges the world has to offer. Binance Futures is planning to launch two new perpetual futures contracts, doing so for Ethereum Classic (ETC) and Ripple (XRP).
Up to 75x Leverage In Contracts
As per the announcement made on Tuesday, these contracts will be paired against the USD Coin (USDC), a stablecoin of the USD, as the name implies. These contracts will allow the traders who wish to take part in it, to go long or short on the base assets, with the offered leverage going up to 75x.
XRP had already made its debut within the Binance Futures platforms back in January of this year. Binance Futures was the first major exchange to have offered perpetual margined contracts with XRP, pairing it up with the Tether (USDT) stablecoin. Within a week’s time, however, a similar product was rolled out, but this time for Ethereum Classic. Binance Futures listing the product alone had caused a price spike of 40% within 24 hours, which is more of a testament to the power Binance holds.
One Year Going Strong
It was back in late May when Binance added options contracts for both XRP and Ethereum. One of the key differences between options and futures, is that the trader isn’t mandated to execute the contract at a particular date.
The reveal of these two new financial products comes just as the one-year anniversary of Binance Futures is on the verge of fruition.
Binance Futures was launched on the 13th of September, 2019, less than a week from now. Ever since its launch, it’s quickly established itself within the derivatives market, primarily thanks to the massive user base Binance holds. This, in turn, has seen the derivatives market see a healthy amount of competition, which is always good for the consumer.
Carving Its Niche
It was back in April when the exchange, based in the Cayman Islands, had ventured within the options trading market, actively trying to establish itself within the Deribit-dominated market.
According to a report made by CryptoCompare, Binance stands as the third-largest exchange when measuring the monthly volumes of derivatives in August, with only Huobi and OKEX beating it.
It remains to be seen how successful these perpetual swaps will be, but all indications show that it will be a popular addition to Binance’s arsenal.