Binance has announced the launching of a Bitcoin-priced coin margin contracts. In their official statement, the largest cryptocurrency exchange in the world in terms of trading volume said that the clients on their platform would be able to carry out coin margin contracts on the platform, and it would be priced in Bitcoin.
Furthermore, the firm has said that they would no longer go the way of the previous futures contracts in which buyers and sellers must finalize a deal on the deadline day.
This means that the new coin margin contracts will not have an official deadline as both participating parties can execute the deal when they want to. The good news here is that traders would be given the free will to hold their positions until they want to do business.
Bitcoin-priced coin margin contracts
Another aspect of this new coin margin contract system is that the contracts are priced in digital assets instead of the usual fiat. Talking about the margin system, it is like the way loans are taken from a broker and used to buy various digital assets.
The loans are always calculated in dollars or other currencies. The new margin priced in Bitcoin will leverage up to 125x, a value by which margin trade is carried out by most firms.
Binance users can try diverse forms of trading
Binance stated that it aims to help users try out different forms of trading, thanks to its new coin margin contracts system.
As previously reported by news outlets, the increasing activities on the Bitcoin futures exchange have shown that institutional investors are increasingly interested.
As a result of the activity, the Bitcoin and Ethereum futures have peaked at a new all-time high figure. According to data from the analysis website Skew, Bitcoin contracts boast nothing less than $830 million worth of outstanding contracts.