In a development for the cryptocurrency trading community, Binance Futures, the futures trading platform of the renowned global cryptocurrency exchange Binance, has announced the introduction of a new trading instrument that is set to revolutionize the market. The platform is gearing up to launch the USDⓈ-M ETHW Perpetual Contract.
The move underscores Binance’s commitment to diversifying its trading offerings and catering to the evolving needs of its global user base. The latest addition to Binance Futures’ already extensive range of trading products is expected to attract significant attention from both seasoned and novice traders, given its unique features and the growing interest in Ethereum‘s forked version, ETHW (EthereumPoW).
ETHW launch details and contract specifications
The USDⓈ-M ETHW Perpetual Contract is scheduled to go live on November 28, 2023, at 12:30 UTC. The new offering is a part of Binance’s continuous efforts to expand its futures market and provide a wide range of trading instruments to its users. The ETHWUSDT contract, as it is known, will allow trading against the USDT (Tether), a popular stablecoin pegged to the US dollar.
One of the most notable features of the new contract is the high-leverage option it offers. Traders will have the opportunity to leverage their positions up to 50 times, which, while offering high potential returns, also comes with a proportionate level of risk. The feature is particularly attractive to experienced traders who are adept at navigating the volatile cryptocurrency market.
The contract will have a tick size of 0.001, and the maximum funding rate at the time of launch is set at +2.00% / -2.00%. The funding fee will be settled every four hours, with the first settlement occurring at 16:00 UTC on the launch day. The contract will be available for trading 24/7, adhering to the non-stop nature of the cryptocurrency markets.
Additional features and risk management
In addition to the standard features, the ETHWUSDT Perpetual Contract will support Binance’s Multi-Assets Mode. The mode allows traders to use various margin assets for trading, offering greater flexibility. For instance, traders can use BTC as a margin when trading the ETHWUSDT contract. The feature is particularly useful for traders who hold multiple cryptocurrencies and wish to diversify their trading strategies without converting their assets into USDT.
Binance has also announced a special incentive for qualified USDⓈ-margined futures liquidity providers. These participants will be eligible for a 0.005% maker fee rebate on trades made on the ETHWUSDT Perpetual Contract for approximately 14 to 15 days following the launch. The initiative is aimed at encouraging liquidity in the new contract, which is crucial for its smooth functioning and price discovery.
It’s important to note that Binance may adjust the specifications of the ETHWUSDT Perpetual Contract based on market risk conditions. These adjustments could include changes to the funding fee, tick size, maximum leverage, initial margin, and maintenance margin requirements. Traders are advised to stay informed about any such changes to manage their positions effectively.
The introduction of the USDⓈ-M ETHW Perpetual Contract by Binance Futures marks another step in the platform’s expansion and diversification of its future offerings. With high-leverage options and the flexibility of Multi-Assets Mode, the new contract is poised to attract a wide range of traders, from those looking to hedge their existing ETHW holdings to speculative traders seeking to capitalize on market movements. As always, participants in these markets should be aware of the risks associated with high-leverage trading and should trade responsibly.