Find out how BUSD-margined Futures works and learn how to get started trading BUSD-margined Futures.
What are BUSD-Margined Contracts?
BUSD-margined contracts are a type of linear futures product that is quoted, collateralized, and settled in BUSD, making the entire transaction easy to calculate in USD (or other fiat currencies). This makes BUSD-margined contracts as intuitive and easy to use as USDT-margined contracts. In fact, users who are familiar with USDT-margined contracts do not need to spend additional time learning how to use BUSD-margined contracts.
Advantages of Holding BUSD
BUSD offers unique advantages compared to other stablecoins in the market:
BUSD is a regulated stablecoin pegged to the U.S. dollar at a 1:1 ratio. The stablecoin is issued by Paxos and approved by the New York State Department of Financial Services (NYDFS).
100% Backed by Cash & Cash Equivalents
BUSD reserve assets are subject to monthly audits by independent third parties to ensure the supply of BUSD tokens is backed by U.S. Dollars. These reserves are held in FDIC-insured bank accounts and US Treasury bills.
Purchase and Redeem With Zero Fees
For a limited time, take advantage of our Zero Maker Fee promotion for all BUSD pairs and our Zero Transaction Fee promotion for 4 BUSD stablecoin pairs. Users can purchase and trade BUSD with a low fee and enjoy industry-leading liquidity in the Spot and Margin market.
BUSD-M Futures Contract Specifications
BUSD-margined futures are only available in the form of perpetual contracts.
Collateral and Settlement
Contracts are denominated, collateralized and settled in BUSD.
Cross and Isolated
Perpetual, allowing you to hold positions to perpetuity unless liquidated.
BUSD-M perpetual contracts carry a funding fee. Depending on their positions, traders will either pay or receive funding. Binance calculates the funding rate every eight hours.
Clear Pricing Rules
Contracts represent only one unit of its respective base asset, similar to spot markets.
Benefits of Trading BUSD-Margined Futures
BUSD-M futures offers unique advantages that attract traders of all kinds.
Enjoy Fee Discounts and Maker Rebates
Traders using BUSD-margined contracts will enjoy lower fees and maker rebates. The fee discount applies to any trading pairs that include BUSD, such as ETH/BUSD perpetual contracts or BTC/BUSD perpetual contracts, just to name a few.
BUSD is a universal settlement currency that allows traders to trade multiple contracts (BTC, ETH, BNB, etc) at any given time. This means that any contract can be opened in the crypto of a trader’s choosing and settled in a stablecoin on the backend, eliminating the need to buy the underlying cryptocurrencies to fund any futures positions.
Ease of Calculating Returns in USD
BUSD is pegged to the US dollar at a 1:1 ratio, meaning 1 BUSD should always be equal to 1 USD, making BUSD-M futures trades straightforward to calculate in terms of fiat currency.
How To Trade BUSD-Margined Futures on Binance?
Trading in BUSD-M futures is easier than most beginners might think—all you need is a futures trading account. Follow this simple five-step process to buy or sell BUSD-M futures contracts on Binance:
Open a futures trading account on Binance. Please note that you must enable a 2FA verification to fund your futures account before you start trading on Binance Futures.