New perpetual XRP contracts are paired with the stablecoin USD Coin (USDC). Binance Futures launched XRP perpetual contracts paired against Tether (USDT) in January 2020.
Binance Futures, a cryptocurrency futures and derivatives platform of exchange Binance, is supporting the XRP (Ripple) and Ethereum Classic (ETC) perpetual contract exchange system.
As part of the celebration of its first anniversary, Binance Futures recently launched the two new Binance products, under the name XRPUSD for XRP, and ETCUSD for Ethereum Classic.
Perpetual contracts went into circulation in the market, paired against the stablecoin USD Coin (USDC). This circulation means that users must pay or receive the margin, profit, and loss in USDC, while XRP and ETC serve as collateral.
In this way, the platform’s users have at their disposal a new mechanism to open operations, in long or short positions, based on a leverage of up to 75 times, as the company stated.
Binance acknowledges that leveraged transactions are very risky, so it warns users about the potential for making both profits and losses that are significant. “Bear in mind that, in the event of an extreme price movement, there is the possibility of liquidation of the entire margin balance in your futures wallet,” he says.
Futures Contracts on Binance
Perpetual contracts are a modality of futures contracts based on crypto assets. They show slight differences in their trading mechanism concerning future since there is no specific expiration or settlement date. In this particular case, the customer is the one who decides when to leave.
About the offer of XRP derivatives, its introduction occurred on the Binance Futures platform in January of this year. This fact made the exchange the first to add a perpetual contract for this cryptocurrency, but it happened in front of the stablecoin Tether (USDT). A few weeks later, it implemented a similar product for Ethereum Classic.
In May 2020, it added option contracts for XRP and Ethereum (ETH), thus providing traders with the right to buy or sell the assets at a certain price for a specific period.
Since the beginning of the year, the platform has been offering perpetual futures contracts paired with USDT, as well as leveraged tokens. In the last year, in addition to quarterly futures contracts, it has been offering a service called Binance Options. This allows reaching short-term exchange agreements, which settles the American way.
In recent days, the company started incorporating more tools for traders, thus allowing them to customize the margin or predetermine particular addresses to hold. In April, it introduced the trading of options. In late August, it launched a new product that allows betting on the rise or fall of the decentralized finance (DeFi) ecosystem.
In a recent report, CryptoCompare stated that Binance was one of the leading exchanges in terms of monthly derivatives volumes last August. According to the ranking of the study, it was the third-largest, after OKEx and Huobi.
By Alexander Salazar