Binance Futures will launch three new USD-margin perpetual contracts with up to 75x leverage allowed on COOKIEUSDT, ALCHUSDT, and SWARMSUSDT to the traders.
The contracts grant up to 75x leverage to traders, allowing more trading avenues to users who like high-risk, high-reward trades. The launch schedule sees COOKIEUSDT start trading from 11:30 UTC, then ALCHUSDT 15 minutes later, and at last, SWARMSUSDT from 12:15 UTC. The contracts are set to be based on projects under Cookie DAO (COOKIE), Alchemist AI (ALCH), and Swarms (SWARMS), respectively, which are all already listed on Binance’s Alpha Market.
The contracts will use Tether (USDT) as settlement assets, being tradeable 24/7. The contracts will now also have Multi-Asset Mode enabled by Binance, allowing users to use different alternative assets like BTC as margin, adding flexibility for the traders. The funding rate for these contracts can either increase or decrease by a maximum of 2.00%. These funding rates get settled every four hours. The minimal move increments for COOKIE and SWARMS are 0.0001, and for ALCH, they are 0.00001. Binance has also noted that it may change those parameters, depending on the market situation, to handle risks more effectively.
Perpetual contracts are suitable for day traders who are lobbying against the price movements of such tokens without holding any underlying asset. However, Binance has stated that the launch of futures contracts does not mean the token will be listed on Binance’s spot market-future contracts.
Due to transparency, the platform has also provided verified contact addresses:
- COOKIE (0xc0041ef357b183448b235a8ea73ce4e4ec8c265f)
- ALCH (HNg5PYJmtqcmzXrv6S9zP1CDKk5BgDuyFBxbvNApump), and
- SWARM (74SBV4zDXxTRgv1pEMoECskKBkZHc2yGPnc7GYVepump).
The contracts have yet to launch, and traders should read the original Binance Terms of Use and Futures Service Agreement before trading. Binance has further pointed out that they are high-risk instruments, which can imply changes to leverage, margin requirements, and funding fees may occur as necessary.
Binance Futures is a crypto derivatives trading platform by Binance, which permits users to trade contracts that are stipulated against the actual cryptocurrency price without owning the actual cryptocurrency. It allows high leverage, different kinds of contracts, and numerous advanced trading features, such as hedging and cross-margin.
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