New BTC derivatives with quarterly settlement offer more diversification.
Today, we are announcing the launch of BTCUSD Quarterly Futures contracts with leverage of up to 125x. Since launching Binance Futures in September 2019, we have rapidly grown to lead the crypto-derivative market with our product innovation and reliable service. We are selective with our offerings and responsive to user and community feedback for our product design.
Quarterly Futures is our first derivative contract with a set expiration and settlement date. Market data aggregator CryptoCompare found that the crypto derivatives monthly volume increased by one-third to hit a new all-time high of $602 billion in May. Binance Quarterly Futures will meet this rise in demand and complement our existing product line to offer users greater variety and diversification.
BTC/USD contracts are settled in the denominated BTC tokens and will expire on the last Friday of the corresponding three-month period. The first batch of contracts is labeled “BTCUSD Quarterly 0925“, indicating their expiration date is set for September 25, 2020 (08:00:00 UTC).
Binance users can control their margin balance by either spreading it across all their open positions or setting individual limits for each position they own (cross or isolate margin modes). They can also choose to hold one direction (i.e. long or short) or both directions at the same time for hedging. These customizations provide users greater flexibility in how they trade.
The introduction of BTC/USD contracts brings our range of derivative products to four broad classes, allowing users to trade conveniently on a single platform and according to their trading preferences:
Token margined, with quarterly expiration and settlement. Trade with up to 125x leverage.
USDT margined, with no expiration. Trade with up to 125x leverage.
Unique variable target leverage range of 1.5 - 3x.
Short duration American-style settlement. Unlimited liquidity.
“Since launching Binance Futures in September 2019, we worked hard to provide a stable, fast, and low-fee futures platform for our users. Today, we are pleased to announce our first quarterly settlement futures contracts, which complements our existing range of financial products. Delivery futures have a significant role in commodity trading and hedging, so we are ensuring we are ready as the crypto market matures and users adopt similar trading strategies,” said Changpeng Zhao (CZ), Founder and CEO of Binance.