By Tobi Loba
According to the recent report published on the official website of Binance exchange, Binance Futures will launch BNB against USDT Perpetual Contract.
Going by the update, trading will be opened for the pair starting from 10th February 2020, at 08:00 AM (UTC). Users of the exchange are liable to select between 1-50x leverage.
In order to properly prevent market manipulation, the exchange will implement a pricing limit of ±1% on the mark price within the first 15 minutes after trading starts.
Binance exchange shared this, “Starting from 2020/02/11 0:00 AM (UTC), Binance will also update the calculation method of daily BNB holdings for Futures accounts to be: the sum of the hourly snapshots of Net BNB balance in a Binance Futures Account each day divided by 24 (hours). In addition to this: Net BNB Balance in Futures Account = Total BNB Balance in Futures Account + BNB/USDT Position.”
According to the exchange, the Binance Coin will represent a positive value of BNB holdings in the trading pair of BNB/USDT perpetual contract.
Also, short position will represent a negative value of BNB holdings in the BNB/USDT perpetual contract.
The exchange also added that “A negative net BNB balance in Futures Accounts will offset your total daily average BNB balance, which is calculated from average BNB balances held in Spot Accounts, Margin Accounts, Sub-Accounts, Binance Lending Products, and Binance Fiat Accounts.”
In conclusion, Binance warned its users of the risks in futures trading due to the high volatility of cryptocurrencies in the market. It reiterates that participants are liable to accrue great profits and to also amass significant losses in the course of trading. So, users are advised to trade responsibly.