Binance Crypto Exchange to Launch Futures Contracts Soon
The leading exchange has been preparing to innovate its trading offerings, with futures markets arriving soon.
The leading exchange has been preparing to innovate its trading offerings, with futures markets arriving soon.
Binance, one of the leading crypto-only exchanges, continues to innovate, with the addition of futures contracts coming soon.
https://twitter.com/binance/status/1145920008096141312
Futures allow traders to make bets on future price movements and oblige the parties to buy or sell an asset at a predetermined price. Futures may offset some of the risk inherent to volatile Bitcoin (BTC) market prices. For now, BTC futures are only available through external exchanges, and the contracts are cash-settled.
So far, the parameters of Binance futures are unknown. There is no date set for the launch, nor is it known which assets will be available on the market. The announcement arrives just weeks before the Bakkt exchange will start offering physical delivery BTC futures to US-based traders.
Binance remains an international market operator based in Malta, and has a more lenient environment for offering derivative products. Recently, Binance announced it would offer a new service, Binance USA, to comply with local regulations. Binance will stop serving US-based traders from September 12.
The Binance exchange is one of the most liquid markets, with more than $2.9 billion’s equivalent traded in 24 hours. It is also one of the biggest holders of stablecoin Tether (USDT) - having upward of 800 million coins at one point, with an indeterminate amount now, as the exchange moved the coins to a series of smaller wallets.
Binance additionally offers the liquidity of Binance Coin (BNB), which still trades above $30 despite the most recent shakedown.