Binance Allows Traders To Short Binance Coin (BNB) With 50X Leverage
The world’s leading cryptocurrency exchange has just announced its intentions to launch the BNB/USDT perpetual contract. This will essentially enable users to short BNB. Up until now, they only had the option to trade BNB on the regular spot exchange.
Short BNB With 50X Leverage
In what seems to be a very interesting move, Binance has just announced that it will launch another perpetual contract to its futures platform. This time, however, the cryptocurrency exchange is launching its native coin, BNB.
As of February 10th at 08:00 AM (UTC), users will effectively be able to place highly leveraged positions on BNB against Tether. Traders will be used to set their leverage from 1x to 50x.
A perpetual contract means that it has no expiration date. In other words, one can open and close it whenever necessary, unlike traditional futures contracts which have a predetermined date of expiry.
Additionally, Binance has said that it will implement a pricing limit ranging between -1% and 1% on the mark price for the first 15 minutes after the trading starts. This is done to avoid market manipulation.
“Careful what you wished for.” – Commented Changpeng Zhao, Binance’s CEO.
What interest rate are you getting from your bank? https://t.co/OC7tWznx2O
— CZ Binance ??? (@cz_binance) February 7, 2020
A Vote Of Confidence?
The futures platform of Binance is growing steadily and the exchange is doing a lot of work to improve it. It started with only one trading pair (BTC/USDT), and currently has 17, including BNB/USDT.
In addition, the volume on it has been nothing short of impressive as BTC/USDT alone has generated almost $1.9 billion of traded volume over the past 24 hours.
However, the addition of BNB/USDT as a perpetual contract could be a sign of confidence in Binance. This provides traders with a mechanism to effectively bid on the price of Binance Coin going down. So far, they haven’t been able to do so.
Of course, it’s also worth noting that BNB is one of the most traded cryptocurrencies on the exchange and adding it to the futures platform makes a lot of sense in terms of earning potential.
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