⚖️ bStocks vs TradFi Perpetuals on Binance
Two instruments may be linked to traditional assets, but their mechanics differ significantly.
🔹 bStocks
• A tokenized instrument tied to the corresponding stock.
• Provides exposure to the price movement of the underlying asset.
• Does not represent direct ownership of shares.
• Depends on availability conditions and the specific product.
🔹 TradFi Perpetuals
• Perpetual contracts for the price of traditional assets.
• May use margin and leverage.
• Do not provide direct ownership of the underlying asset.
• Include the risk of liquidation.
📌 How to choose between them?
First, define what you want to do: get exposure to the asset, or trade changes in its price using a derivative.
These are different tools with different risks. Don’t treat them as interchangeable.
Two instruments may be linked to traditional assets, but their mechanics differ significantly.
🔹 bStocks
• A tokenized instrument tied to the corresponding stock.
• Provides exposure to the price movement of the underlying asset.
• Does not represent direct ownership of shares.
• Depends on availability conditions and the specific product.
🔹 TradFi Perpetuals
• Perpetual contracts for the price of traditional assets.
• May use margin and leverage.
• Do not provide direct ownership of the underlying asset.
• Include the risk of liquidation.
📌 How to choose between them?
First, define what you want to do: get exposure to the asset, or trade changes in its price using a derivative.
These are different tools with different risks. Don’t treat them as interchangeable.